Uganda has several banks that offer Mortgages to Salaried (local and diaspora) and Non-Salaried customers. The process of acquiring a mortgage is refreshingly straightforward and can be as fast as one is organised. We especially like Mortgages because for a relatively low monthly charge you too can join the ranks of Ugandans owning their home or investing in income generating real estate.

As you evaluate the Mortgage option, it helps to:

• Prepare evidence of sources of income (the more predictable and sustainable sources of income the better)
• Have an understanding of your monthly expenses/ outgoings
• Have your Financial Card ready (if you already have one)
• Have up-to-date identification and proof of address
• Draw up a shortlist of Mortgage lenders you want to talk to. Examples include Stanbic Bank, dfcu, Standard Chartered, Barclays and Housing Finance Bank
• Draw up some questions you want to ask the lenders such as about insurance options and processing time from application to approval.

Typical Mortgage products available in Uganda include:

1. Purchase Loan

This facility is targeted at facilitating the purchase of a property. Financing available for up to 80% of the Open Market Value of the property.

For 'Off Plan' or pre-construction property, lenders typically issue a Mortgage Guarantee to the property developer (a commitment to pay the purchase price) on the borrower and product/ developer satisfying the lender's requirements. The Developer gets paid when the product is completed and handed over (and therefore has a basis for deriving Open Market Value).

2. Equity Release

Equity Release enables a property owner to take cash from the equity built into it. Financing can go up to 70% of the Open Market Value (OMV) of the property.

3. Completion Loan

Targeted at home builders looking to complete construction. Lenders typically require that you have made significant progress on construction of the property. Can be up to 80% of Open Market Value of the property.

4. Re-finance

Allows a home owner to pay off an existing loan by taking a new loan (typically from another provider and usually at better rates/ terms) while using the same property as the security for the new facility. Typical offers are for up to 80% of the Open Market Value of the property.

Open Market Value in the simplest of terms is the value of a property in the market between a willing buyer and willing seller with no third parties involved.

Typical Requirements

General requirements:

- Property details
- Valuation of property
- Copy of Certificate of Title
- Preliminary Sale and Purchase Agreement
- Bills of Quantity (For Completion Loans)
- Approved building plans for the property
- Pictures of the property
- Passport size photos
- Copy of passport/National ID/Driver’s licence and or Employee Identity card.
- Proof of residency i.e. utility bill, letter from LC
- Work permit in the case of an expatriate

Salaried borrowers:

- Bank statements (statement period varies from bank to bank but usually at least 6 months)
- Proof of employment
- Copy of contract/appointment letter
- Proof of other income (where applicable)
- Copy of financial card

Non-salaried borrowers:

- Audited business accounts (up to 3 years of accounts)
- Bank statements (up to 3 years)
- Business Registration Certificate
- Memorandum and Articles of Association
- Company Form 7/ 8
- Cash Flow projections (at least 2 years)
- Tax Receipts/ Tax Clearance Certificates
- Board resolution to borrow

These requirements vary among lenders. Speak to your preferred lender to understand their specific criteria.