Dfcu Bank has introduced a new Home Loans offer at 16.9% interest per annum, giving customers looking to buy, build or refinance a home more flexibility to manage the cost of property ownership.
The offer combines financing of up to 85% of the open market value of a residential property, a 60-day repayment holiday, financing of the insurance premium and confirmation of qualifying home loans within 48 hours, subject to terms and conditions.
Buying a home is rarely about the purchase price alone. Beyond raising a deposit, prospective homeowners must plan for valuation, insurance and other transaction costs, while considering how a mortgage repayment will fit alongside other household and financial commitments. The new offer is designed to ease some of that pressure at the point when customers are making the transition into home ownership.
“Buying a home is not simply a question of whether a customer qualifies for a particular loan amount. There is the customer’s own contribution, the costs associated with completing the transaction and the monthly repayment that will sit alongside other financial obligations for a number of years. We want to help customers structure that commitment at a level they can sustain,” said Sebastian Murokozi, Manager Home Loans at dfcu Bank.
Under the offer, customers purchasing residential property can access financing of up to 85% of the property’s open market value, while repayment can be spread over a period of up to 20 years. Customers building homes are required to contribute at least 30% towards the construction.
But the route to owning property is not the same for everyone. Some customers are buying their first completed home, while others are purchasing land and preparing to build. There are also customers developing rental properties, Ugandans living abroad investing back home, and existing property owners looking to refinance or release some of the value they have already built in their property.
The dfcu Home Loans portfolio caters for these different needs, with financing available for completed residential property and land, construction and structural renovation, rental developments, mortgage refinancing and equity release.
The offer is available to qualifying salaried employees and self-employed customers, as well as Ugandans living in the diaspora with verifiable income and expatriates working in Uganda with valid permits.
For existing homeowners, refinancing provides an opportunity to move a mortgage held with another financial institution to dfcu Bank, while equity release allows qualifying customers to borrow against property they already own. Customers investing in rental property can also access financing for the development of up to eight residential rental units on a single title.
The Bank is also addressing some of the costs customers encounter at the beginning of the mortgage journey. Financing of the insurance premium means customers do not have to meet that cost separately upfront, while the 60-day repayment holiday gives them time before scheduled mortgage repayments begin.
Customers can also benefit from dfcu Bank’s relationships with property developers and agents, including Build Net, HK Properties, Universal Multipurpose, Knightsbridge Avenue, Fakhruddin Properties, Royal Palms, Aesthetics, Comfort Homes and Pearl Marina. Selected partnerships provide concessions on transaction costs. Eligible customers purchasing through HK Properties, for example, benefit from waived legal and professional fees.
“A home loan gives customers the ability to acquire the property they want without having to raise the full purchase price upfront. With financing of up to 85% of the property value and repayment periods of up to 20 years, customers have the flexibility to spread the cost over time and make the move into home ownership sooner,” Murokozi said.
Customers also have access to dedicated relationship management and financial advisory support throughout the process. Where a borrower later experiences financial difficulty, the Bank encourages early engagement so that available restructuring options can be considered.
Having operated in Uganda since 1964, dfcu has worked with generations of Ugandans as they have built businesses, invested and created assets. The Home Loans offer extends that experience to an investment that remains deeply significant for many customers, whether they are buying their first home, building, investing in rental property or using an existing property to pursue their next financial goal.
Customers interested in the dfcu Home Loans offer can call 0800 222 000 or email HomeLoans@dfcugroup.com for more information.
