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CategoriesFinancing

How to Improve your credit score

A credit score is a number accredited to you based on your financial habits. Lenders look at it before loaning you to gauge your probability of paying back.

A good credit score

A Credit score ranges from 850 to 300.700 is considered a good credit score while 800, is an excellent credit score. A higher credit score increases your chances of not only getting a loan but also a better interest rate.

When calculating a credit score the following factors are considered:

  • Payment history for past loans and credit cards
  • number of new credit accounts recently opened
  • Amounts owed
  • Type and age of credit accounts
  • Number of inquiries for your credit report

How to boost your credit score

if your credit score isn’t precisely where you want it to be– don’t worry. Your credit score can be improved in a variety of ways.

Request a credit report

Knowing where you are first is necessary before you can increase your score. Requesting your credit score will show you the factors that led to your current score. You can use this to pinpoint your areas for improvement. If you see a mistake on your credit report, be sure to dispute it immediately so the data can be rectified.

Settle or limit debts

By settling your debts, you can raise your credit score quickly. Aim to pay off all of your debts on time.   Your lenders will regard you more if you pay more than the required minimum each month.

Pay all bills on time

Paying your bills on the day they are due will give you a boost. A good tip will be to automate your bill payments and to confirm whether they went through.

Reduce credit inquiries

keep your new credit applications to a minimum. When a creditor makes hard inquiry on your account their inquiries remain in your account for nearly two years. Creditors don’t like too many players in the game, when they are too many, they may negatively impact your score.

Grow your credit history

The more Long-standing credit accounts that are consistently settled in full reflect positively on your repayment reliability the better for you. They show creditors that you have been managing your finances well for a while.

The bottom line

You might think about checking your credit score if you’re considering obtaining a house, a new automobile, or establishing a business. Use the approaches we covered above, and you should be set to go. For any assistance kindly contact us on 0708888222/0711082929 or email us at info@mintvillas.co.ke

 

 

 

CategoriesFinancing Mint Villa Housing

How does inflation affect real estate?

 

Inflation is the increase in prices or the increase in the cost of living in a country. The inflation rate in Kenya has been alarming, From 5.1% in February to 7.9% in June 2022. For 2022, projections indicated annual average inflation at five percent in Kenya, above the rate projected in other African countries. This is partly affected by the war in Ukraine and the ongoing COVID 19 pandemic.

The real estate sector will be affected in the following ways;

 Higher mortgage rates

The mortgage rates rise in tandem with the rate of inflation. When loan rates are low, more people borrow, which increases their disposable income. As a result, inflation increases. Consumers will often save more money than they spend as central banks raise interest rates to combat inflation because the gains from higher interest rates are more alluring. It is anticipated that by reducing consumer spending, inflation will drop. In Kenya, the monetary policy committee increased the rate by 50 basis points to 7.5% in May 2022, the first increase since July 2015 to curb inflation expectations.

Increase property value

Following ongoing Russia’s onslaught on Ukraine, there have been fears about supply. The price of key construction materials, including steel, paint, and cement has shot up due to local shortages. According to business daily, the prices of steel in the international market have moved up by around Sh15,390 per tonne since February 2022. Locally, a kilo of steel has risen to Sh180 from 100 while a bag of cement has moved from 600 to 1000. If this continues the property value will also increase.

Increasing Rents

While some people view inflation as a negative, investors view it as a positive. For those looking forward to investing in rental property now is a good time. For landlords, inflation is a positive thing because it will enable them to push rents up. There is also an opportunity for mortgage lenders If they increase the monthly rent while maintaining the same mortgage payment, you will have extra cash on hand. Having said that, investing in real estate now may present landlords with more chances down the road.

The Bottom-line.

It can be difficult for investors and property owners to navigate the effects of inflation on real estate. Depending on your viewpoint, inflation can be both harmful and positive. Fortunately, Mintvilla Housing is capable and willing to assist you. Contact us on 0711082929 or 0708888222 or email us at info@mintvillas.co.ke.

CategoriesFinancing Mint Villa Housing

List Of All Best Mortgage Lenders in Kenya

 

The following is a list of top institutions in the country that offers mortgages;

 KCB Bank

You can borrow from KES 100 million with up to 90% for owner-occupier,80% for income-generating properties, and 70% for plot purchase. The interest rate is 13.3%.

ABSA Bank of Kenya

Financing up to 90% financing with a repayment period of up to 25years

Stanbic Bank

Up to 105% finance of properties below Kes. 20M and up to 100% finance for construction of single residential houses below Kes. 20M.The payment period of up to 20 years

Standard chartered bank

You can borrow up to KES 100 million, with up to 100% financing and a long tenor of up to 25 years. The interest rate is 12.2%.

NCBA

It offers Up to 105% Financing of property value or market price. The maximum term of up to 25 years. NCBA mortgage loans are offered in Kenya in Shillings, Dollars, Pounds, and Euros.

EQUITY 

The loan amount is based on the customer’s ability to pay. The loan period is up to 180 months (15 years) and the  financing Margin – up to 100% financing.

HF Group

It offers up to 90% financing of the property value with an interest rate of 13%. The maximum repayment period is 20 years.

Citibank Kenya

Citibank offers fixed and adjustable-rate mortgages. The annual interest is 12.5%.

Gulf bank 

Gulf bank provides home financing solutions for property in any major city or town with flexible financing and repayment plans. It’s based on the Diminishing Musharaka Sharia’h Agreement. The repayment tenure is up to 20 years.

Bottom line

Consider your budget and long-term financial goals when determining the best terms for you. A longer payment period may appear appealing, but keep in mind that the interest rate will be higher than on short-term loans. It is important to note that the amount offered by banks does not include stamp duty, legal fees, negotiation fees, valuation fees, or insurance fees.

CategoriesFinancing

Extra Costs You Need to Know When Purchasing a House

With all of the excitement surrounding the purchase of a home, it’s easy to become preoccupied with the purchase price and overlook potential additional costs. These extra charges are popularly referred to as closing costs. Stamp duty, legal fees, registration fees, consent of transfer, valuation costs, and deed search are among them.

Stamp duty

This is the tax applied on legal property documents involved in the transfer of property. In urban areas such as Nairobi, Mombasa, and Eldoret it is 4% of the value of the property while in rural areas it’s 2%.

Legal fees

A Lawyer is required during a property transaction process to conduct due diligence on the property documents before and during the transaction and ensure you as a client buy the right property. The legal fees also known as the lawyer’s fees are the money paid to a lawyer who witnesses the transaction of any property. According to the law of Kenya, it amounts to Ksh.35,000 only.

Registration fees

To cater for entry into the registry and title printing costs a client has to pay around Ksh500 to Ksh1,000.

consent of transfer

This is usually written permission of the relevant authority, the property owner, or any other interested party that okays the transaction of property. A fee of Ksh1000 is charged for Consent to Transfer from the commissioner of Lands.

Valuation Fee

Valuation is the process of analyzing the value of a property in relation to the market value. Plots within the municipal council administrative unit charge Ksh1,000 while those in urban centers, in this case, Nairobi, charge Ksh500.

Deed Search

To determine the legitimacy of your title deed you have to conduct a title search. You can do this by using the E-Citizen platform. It will cost you Ksh 500 only. Afterward, you will have to schedule a meeting with the Land Control Board which will cost you Ksh 1000.

Utility Fees

A client has to cater for some bills such as electricity, water, security fee, and garbage collection. Some real estate companies will require you to make a deposit. This depends on the real estate company.

The bottom line

When buying a home ensure you calculate all the  estimated costs that we have discussed above. I hope this article was helpful. We would like to hear from you contact us at +(254) 711 08 29 29, or email us at homes@mintvillas.co.ke.

 

 

 

CategoriesFinancing

Tips for first-time mortgage applicants

Do you intend to apply for mortgage loan? Have you ever wondered what financiers look for when determining illegibility? You are about to learn four key areas financiers evaluate for your illegibility. 
They are listed below.

The debt-to-income ratio

DTI, according to CRB Kenya, is the amount of debt you pay each month in relation to your monthly income. Lenders use it to determine how much of a loan you can afford. The debt-to-income ratio is calculated by dividing your total monthly debt load (credit cards, car loans, and student loans) by your monthly gross income (Before tax and deductions). A lower DTI will result in lower interest rates and terms. You can lower your DTI by making payments. You can reduce your DTI by paying off debts, asking for a pay rise, and accounting for your income.

Credit profile

Financiers check your credit score by looking at your payment history, overall debt level, length of credit history, categories of credit, and new credit applications. The higher your score, the more likely it is you’ll be approved for a mortgage, and the better your interest rate will be. Therefore, before applying for a mortgage, ensure that you review your credit report. Investigate the standards you’ll need to satisfy your preferred lender.

Down payment requirement

Making a down payment will profit you in the following ways:

  • A down payment of at least 20 percent increases your chances of getting a better interest rate
  • Some minor charges such as administrative charges and login charges may be reduced.
  • A higher down payment means that you have higher equity in your home

Remember, down payments do not include closing costs (extra costs such as stamp duty, legal fees, and valuation fees).

Your work history

It is important to prove how much you earn when you apply for a mortgage. If you are employed and need evidence of employment of at least two years or if you are self-employed, you’ll need to provide proof of income from another source through bank statements.

Conclusion

Remember before you apply for a mortgage request a copy of your credit profile to repair your credit history, pay outstanding debts, regulate your spending habits, nature a saving habit and save for a down payment. If you require any help or have a mortgage-related question, kindly contact us on 0711082929/0708888222 or email us at homes@mintvillas.co.ke.

CategoriesFinancing Mint Villa Housing

4 Financial Habits you Should Cultivate.

Do you know that it will only take you 10 years to attain financial freedom if you start now? Fascinating as it may sound here is how you get started;

Budgeting and tracking your finances.

You should be aware of where all of your money goes. Tracking is as simple as writing down your daily expenses and analyzing them at the end of the month. Budget once you’ve defined where your money goes. You can apply the 50/30/20 rule, which states that 50% of your money should go toward needs and essentials, 30% toward wants, and 20% toward savings. Another option is to pay yourself first, take care of the necessities first, including savings, and then spend the rest of the money on wants. You could also use budgeting apps. Whatever method works best for you in the long run.

Saving

If you are considering early retirement, you should save at least 20% of your income. Saving money usually necessitates setting a goal. What are your objectives? Is it a down payment on a house, a vacation, or even education? The next step is to prioritize your goals and assign a time limit to them. Automating your savings is a good way to save. This will keep you from being tempted to ‘steal’ from yourself. Is there any unnecessary spending you should eliminate? Eating out and shopping without planning are two examples. The only difficult aspect of saving is getting started. Begin right away!

Get a side hustle

Is there a business idea you’ve been putting off for a while? Is there anything you can do in your spare time to earn money? Determine what you enjoy doing and what you are good at. Start a side hustle.  It will not only increase your income but will also allow you to meet your financial goals faster.   Consider the time you want to take on that side hustle and ensure you balance it with your full-time job and personal life; if all appears to be going well, add another side hustle.

Living below your means

living below your means spending less money than you earn. For example, if you earn Ksh 35,000 but only spend Ksh 30,000, you are living Ksh 5000 below your means. Living below your means teaches you financial discipline. Every expenditure will be deliberate, and You will have the capital to invest. You’ll be amazed at how confident you’ll become in managing your personal finances once you start reaping the benefits of living below your means.

The bottom line

Financial freedom calls for discipline and sacrifice. It may seem like a struggle when you start but you will enjoy the fruits of your labor in no time. The earlier you start the better for you. If you need any financial advice kindly contact us on  0711082929 or email us at homes@mintvillas.co.ke

 

 

CategoriesFinancing Mint Villa Housing

3 Simple Ways to Budget For your finances

 

Budgeting is the process of planning how you spend your money. It is merely a comparison of how much you bring in and your expected expenses monthly or quarterly or yearly. A budget is important because it helps you determine your spending plan and in turn, shows you where you should limit your spending and what you can afford to spend more money on. There are three ways you can budget:

  1. Zero-Based Budgeting

This is where you have to write down and budget where every shilling goes ahead of time. This method is good for people who feel like they are not in control of their money. The following are simple steps for creating a zero-based budget

  1. Write all fixed expenses and their cost
  2. Write all expenses that vary and their costs
  3. Add fixed and variable expenses and deduct them from your monthly income
  4. The remaining amount is divided between savings, financial goals, and entertainment or whatever you may need

2.50/30/20 Rule

This rule had its origin in the book All Your Worth by Elizabeth Warrant. The 50-30-20 rule is a straightforward template that helps you in budgeting for your finances.

50% of your income-Needs

These are the bills you must pay and things necessary for survival. They include the following:

  • Food
  • Transport
  • Rent or mortgage
  • Electricity
  • Water

30% -Wants

These are expenses that will advance your lifestyle/non-essential expenses. You can live without them though. They include:

  • A new phone
  • Television
  • New home décor
  • Eating out
  • Entertainment subscriptions
  • New clothes

20% -Savings

The remaining 20% can be used for savings or to pay off debts if you have any. It depends on your ultimate goal. Whether it is to buy a house, education, or anything that you may be aiming for.

3. pay yourself first method of budgeting

Last but not least is the pay yourself reverse budgeting strategy where you take care of the necessities first including savings and then spend the rest of the money on wants, stress-free.

The following are the steps to pay yourself first;

  • Note or calculate your monthly income
  • Add the money you spend on needs and that for your financial goals
  • Deduct the sum above from your monthly income
  • Enjoy the leftover money stress-free

The Bottom-line

Budgeting can be hectic but once you figure out which method works for you, then you are good to go in achieving your financial goals. Do not wait to start, start now. Have you budgeted for a house? It is not too late. The dream homeownership can be achieved easily if you know how to manage your finances. For more advice and information contact Mintvilla Housing +(254) 711 08 29 29 or email us at homes@mintvillas.co.ke

 

 

 

 

CategoriesFinancing

Why Consider getting a mortgage

WHY CONSIDER GETTING A MORTGAGE

Owning a home is more than hype; It is the gateway to long- and short-term financial success. In the long run you will build a nest of equity, and in the short run you will be able to take advantage of potential tax deductions and pay yourself instead of paying your landlord’s monthly rent. A Mortgage Makes Homeownership Affordable: Because you can spread your mortgage payments over many years, the amount you will pay monthly is more manageable and affordable! Traditionally, when people take out their first mortgage, they tend to choose a 25-year term.

Mortgage interest rates tend to be lower than any other form of loan because the loan is secured by your property. This means that the bank or building organization has a guarantee that if things go wrong and you cannot return it, there is still something of value – your property – to sell to pay for part, if not the entire mortgage.

Achieving homeownership made easy.

Mintvilla housing has partnered with KCB Ltd. to help you with house and plot financing of up to 90%. With this mortgaging you can buy a home without having the full price in cash. This means that you will still have money to make other investments and cater to your everyday needs.

  1. Security

When getting a mortgage, you also get yourself a Mortgage Protection Insurance (MPI) depending on the amount of mortgage, the age, and occupation of the buyer. This means that the bank bears the larger share in case of any risk to your homes such as sudden death or illness. And the best part of this MPI is that it runs the same period as the mortgage period.

  1. Affordability (Cheaper)

Paying for something you’ll eventually own is way cheaper than renting.

If you get a mortgage and pay consistently, the bank will view you as trustworthy. You will therefore be eligible to get another loan with lower interest and make another investment.

  1. Longer repayment periods  

KCB bank gives you up to 25 years of repayment depending on your various factors such as age, occupation, etc.

  1. Non-resident Kenyans are eligible

KCB gives home loans to Kenyans living outside the country. They can buy a house as an investment or a place to stay. And there is a choice of currency either cash or Kenyan shillings.

CategoriesFinancing

Tips on How to move on a budget

You’ve just found your dream and plans are underway to move in, but there’s one problem, however. The moving service looks set to cost you an arm and a leg hence immediately killing the enthusiasm that comes with moving into a new home.

As much as hiring a moving company comes a long way in easing all the logistics, it can sometimes prove to be a difficult affair pocket wise. Here are a few tips to facilitate moving into a new house on a tight budget.

Assess your budget

Knowing your budget and prioritizing to stick by it ensures you won’t break the bank to spend more than what you already have. What amount of money are you willing to set aside with regards to moving? That should be a key question as your moving budget also affects the repairs or enhancement budget of your new house.

Weigh in your options

Sketch all your preferred options and critically decide what best suits your immediate need. That includes laying all the options which include hiring a moving service or practising some do it yourself methods for the same. While hiring a moving company will massively be efficient in helping settle down into your new home, Do it yourself methods will cut the expenses that come with moving.

Use what you have

Boxes are the building block of any moving procedure. Purchasing a whole lot of boxes to facilitate moving can only be an expensive affair. By virtue of boxes being an easily available commodity, take it upon yourself to find them for free from stores that would want to dispose of theirs or get some from friends. You can also use sheets and blankets as packaging materials by employing them as wrappers to cover other home items.

Take only what you needss

Moving with all your commodities can negatively affect your limited moving budget. It is therefore essential to have a priority list ranging from the most important commodity to the least important. You can then donate or turn all the unnecessary stuff in for cash. That will therefore reduce the moving cost if you’re hiring a moving company.

Moving with a minimal budget can also be made possible by having friends and family help you in packing, moving and finally unpacking when in the new house. It can be quite difficult to convince someone to help you can’t dismiss reaching out to a person or two for a favour.

Moving can be a nerve-wracking experience especially if you want to do so on a budget, but being creative and getting out of your comfort zone will come in handy in helping you out.

CategoriesFinancing

What is mortgage fraud & how to avoid it

Mortgage offers a lifeline in helping people buy their dream homes. The flexible paying plans always beat the pay in cash method which sees more and more people getting away from it. In trying to purchase your dream home and live your best life, one might be tempted to undertaking unethical issues to cut themselves the best deal.

Mortgage fraud can be facilitated by both parties involved in the homeownership process. That includes the lender and also the borrower. It can be termed as a fraud once either or both the lender and the borrower omit key facts and figures regarding the deal. While striving to find yourself the perfect home it’s significantly important to avoid being the victim or perpetrator of mortgage fraud.

Here are a few types of mortgage fraud schemes to avoid.

    Occupancy fraud – this is whereby the mortgage applicant provides false information regarding his true intention with the property. They claim the property would be their permanent residence yet they plan to rent it out.

    Home appraisal fraud – it requires both parties to participate and it involves illegally inflating the value of the property.

    Employment income fraud – this occurs when the applicant provides false income to get more mortgage funds.

Want to avoid this kind of mortgage fraud? Here are a few ways to do so

Be honest on your mortgage application

Providing accurate information on your mortgage application goes a long way in protecting your assets or providing you with a date with the authorities. You might be forced to repay the whole loan and in some cases, the lender would have to take back your home.

Read and understand every document before signing

The excitement of purchasing a new home might sometime bring forth a lot of pressure and naivety, therefore, blinding you from key facts on the documents. It’s essential to have a deep look into the documents and seek advice clear any doubts. Don’t sign anything until you’re comfortable enough to do so.

Inspect the property

Have a property inspector of your choice thoroughly inspect the property. That might lead to uncovering of some underlying damages may be missed or hidden by sneaky sellers. That helps you get the best mortgage deal in terms of paying for the true value of the property.

Do intensive research or get referrals

Buying a house is a big deal and shouldn’t be taken lightly. It is only fair for you to do intense research before committing or getting referrals from friends and family who have been there before. It comes in handy to talk to someone who has been there before.

In a space that contains a lot of honest mortgage providers and the opposite alike, it’s important to be extra cautious to avoid falling into such traps.