The Sunday Mail
Business Reporter
FBC Building Society has set aside a US$10 million resource envelope for individual mortgages for its planned housing projects in Avondale, Greendale and Mount Pleasant.
The facility, which is open to individuals employed in both the formal and informal sector, has mortgage repayment rates of about US$500 per month – considered to be relatively cheaper than existing mortgage rates for most low-density suburbs.
It will attract an interest rate of 15 percent per annum and has a tenure of 20 years. The building society will construct two-bedroomed garden flats in Avondale, while those in Greendale and Mt Pleasant will be three-bedroomed duplex apartments.
FBC spokesperson Ms Priscilla Sadomba told The Sunday Mail Business that the bank’s mortgage products such as the 10-year Equity Release Mortgage Loan for individual clients were designed specifically to unlock value since potential beneficiaries can borrow against mortgageable property.
The loans can be used for either loan restructuring or home improvement. “FBC Building Society continues to provide housing solution for the Zimbabwe property market as it continues to develop and finance medium- and high-density projects to cater for the increasing housing backlog,” said Ms Sadomba.
Zimbabwe currently has a housing backlog estimated to be at 1,2 million houses. Housing loans are still elusive as the local market remains illiquid. But the new facility will be available for existing and new account holders.
Ms Sadomba said, “Whilst the formally employed can borrow up to 50 percent of the value of their paid-up property, those who are informally employed, with a defined source of income from existing projects or SME businesses, can borrow up to 15 percent of the value of their paid-up property. “Limits of above 15 percent up to 50 percent may be considered subject to proof of ability to service the debt from the proven source of income or project. “As such, the product is accessible to anyone with the capacity to repay and who can provide the required security.”
Building societies such as ZB, CABS and CBZ have mortgages of between US$150 000 and US$200 000, with home seekers expected to pay deposits of between US$20 000 to US$50 000, as well as monthly submission of about US$2 000 for more than 10 years.
FBC Building Society currently has several housing projects lined up for the year 2017.
It is developing 24 upmarket duplex garden flats in the low-density suburb of Mt Pleasant, with each phase consisting of 12 units. There are also 16 upmarket duplex garden flats in Greendale.
Construction of 16 upmarket two-bedroomed cluster units in Avondale is expected to begin soon.
