Facility/Product and Purpose
- Mortgage and Home Improvement Loans.
- To assist customers to purchase, improve existing house, complete a house under construction, buy a plot or construct a house
- Salaried Employees and Account Holders resident in Malawi
- Non-Resident Malawians with Foreign Currency Denominated Accounts
- Foreign Nationals with Permanent Residence
- Customers with regular income from business
- Companies, organisations and institutions with sound financial capacity
Tenor and Terms
- Up to 15 years for individual borrowers.
- Up to 7 years for institutions.
Maximum Installment Amount
- Up to 30% of net monthly pay/income, where customer is staying in a rented house.
- Up to 35% of net pay / income where the customer is staying in own house.
- Legal charge or mortgage
- Security can be different property provided it is roofed and located in areas zoned for city or town status.
Interest Rates, Fees and ChargesReviewed at Bank's discretion but currently
- Base Rate for individual borrower.
- Base Rate plus 4% for institutions.
- Legal fees as per standard legal charges
- Arrangement fees charged as per standard charges booklet.
- Contribution of at least 10% of purchase price.
- Title deeds in the name of the seller.
- Remaining lease term not less than 15 years
- Offer by seller in writing.( Not by agent/third party unless Power of attorney is submitted and held on file.)
- Letter of undertaking to continue remitting salary to the bank account.
- Pay slip not more than 30 days old.
- Copy of Employment contract if applicable.
- Property to be within areas zoned for city or town status.
- Valuation by Bank's recommended valuers, not more than 5 years old.
- Property being mortgaged to be physically inspected by the Bank.
- Mortgage Finance Application form completed.
- Search Certificate from Lands- not more than 3 days old
- House to be insured with Bank's Interest Noted (BIN).Premium paid up to date. House owners and Credit Life Insurance arranged preferably under Bancassurance Scheme.
- MRA Tax Clearance Certificate and Ground/City rates clearance receipt, also required when creating a transfer of charge.
- Sanction letter acknowledged by customer.
- Costs and quotations for the completion and improvement (Bill of quantities)
- Board resolution authorising the company to borrow in case of Limited Companies.