NHC Tanzania and ABSA Bank Tanzania Reintroduce a new 100% Mortgage Finance to the Housing Market.

On 20th Feb 2023, the National Housing Corporation of Tanzania and ABSA Bank (Tanzania) reintroduced a mortgage proposition to address the Housing demand and mortgage market in Tanzania.

It is already known for a fact that Tanzania needs at least 3 million units of Housing yearly, but the current supply is only 200,000 units which clearly does not suffice. According to Mr. Abdi Mohamed Tanzania Managing Director, this new Mortgage finance seeks to address the prevailing housing demand by providing 100% financing to potential homebuyers. This proposition includes features such as competitive interest rates, flexible credit assessment which allows home buyers to pay only 10% downpayment and include any verifiable additional income as a basis for the Bank to determine loan eligibility. 

Another unique benefit of this new mortgage finance is the rise of amount from TZS 500million to TZS 1 billion, which makes it easier for big investors to benefit on this.

Not only that,this Mortgage is available to Tanzanians in Diaspora, who wishes to invest back home and also in other Tanzania regions including Arusha,Mwanza,Dodoma,and Zanzibar.

On this same day, ABSA Tanzania signed a Memorandum of Understanding with NHC as a property developer for the bank to be able to finance individual purchase of Housing units sold by NHC either before the start of construction, during construction or newly completed units available all over the country.

According to Mr Nehemia Mchechu, the former NHC Director General is aware of the challenges facing the housing sector in Tanzania, and they are committed to enable Tanzanians to access affordable housing and close the gap.

Also, the Minister of Land and Human Settlements, MS Angela Mabula praised this move by ABSA Bank and NHC Tanzania as it is one of the initiative the government is seeking to see to help Tanzanian people to access decent shelter ss it is among the top three basic needs of a human being. She also added that investment in Housing Sector have a great contribution on Capital, work, savings, health and etc.  so, the other Tanzanian Government is very impressed by this new proposition.