dodom. NMB Bank Plc yesterday unveiled its mortgage products to real estate industry players to play an increasingly important role in helping Tanzania reduce the decent housing deficit, currently estimated at 200,000 units per year.
The lender, which has issued mortgages totaling Sh33.64 billion over the past seven years, said here yesterday that it stands ready to support the government’s efforts to realize the aspirations of Tanzanians.
“NMB has a special program to support housing improvement through affordable and fast home loans,” Aikansia Muro, the bank’s head of retail banking, told attendees at a workshop on better housing [NMB] organized for stakeholders in the value chain of the construction industry.
Ms Muro said the mortgages renewed by NMB Bank range from Sh10 million to Sh700 million.
A mortgage market update report released last week by the Bank of Tanzania (BoT) and Tanzania Mortgage Refinance Company Limited shows that NMB Bank held fourth place in a market where 33 lenders – as of March 31 2022 – A combined Sh503 had renewed 0.74 billion mortgage loans over the past seven years.
According to Ms. Muro, NMB Bank offered its customers four options for financing their housing needs.
These include loans for home purchases; building mortgage; a loan to complete house construction and using a house as collateral to secure a loan.
Mortgage interest rates have also fallen in recent years to 14 to 16 percent compared to 17 percent.
“The bank has also lowered the salary threshold for eligible borrowers from Sh700,000 to Sh300,000,” Ms Muro said.
Speaking at the event, the Government’s Lead Advisor, Ms. Evelyne Mugasha, said that by organizing the Housing Day and workshop, NMB had shown its commitment to supporting the Government’s efforts to improve the supply of decent housing and that available studies show that the country has an annual deficit of 200,000 units.
NMB Central Zone Manager Nsolo Mlozi said they had invited housing stakeholders to share notes on the best ways to address sectoral challenges, including the issue of affordable mortgages.