What is mortgage finance?
A mortgage is a legal instrument used to create a registered lien on real estate by contract between a borrower and a lender. By taking out a mortgage, an individual is able to finance the purchase of a home without having to raise all the funds upfront. The lender provides most of the funds required for the purchase, while the borrower repays the lender over the term of the loan. The borrower (mortgagor) uses the mortgage to pledge real property to the lender (mortgagee) as security against the debt.
Why is IFC promoting mortgages in Uganda?
IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. Adopting a market-oriented mortgage system will help improve the lives of the many families who live in unsafe, substandard, or severely cramped housing conditions. Also, creating an active and organized residential mortgage market will stimulate the growth of several supporting industries, including construction, building materials, architecture and design, and real estate agencies. Many downstream industries, such as small and medium enterprises that focus on furniture making, will benefit from expansion of housing markets. This will also spur growth in skilled and semi-skilled employment.
Can I obtain a mortgage through the IFC Uganda Primary Mortgage Market Initiative?
The IFC Uganda Primary Mortgage Market Initiative does not provide direct financing to individuals. It works through three participating financial institutions: DFCU Bank, Orient Bank, and
Stanbic Bank. Anyone who qualifies for a mortgage under the terms and conditions of these institutions is eligible. We recommend that you contact any of these institutions for further information about purchasing a house.
How do I know if I am eligible to apply for mortgage financing?
Anyone who qualifies for a mortgage under the terms and conditions of the three financial institutions mentioned above is eligible.
IFC Private Enterprise Partnership for Africa