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Can I get a mortgage from outside Kenya?
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2012
#1 Posted : Friday, October 15, 2010 6:41:50 PM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
Can one apply and get a mortgage from Europe or the US to buy property here in Kenya?

We are a poor nation accessing mortgages at 15% while Americans a first world country accesses at 4.21% on a period of up to 30yrs!

Now why can't I get a mortgage from an American bank @6-8% and not feed our greedy banks?

BBI will solve it :)
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2012
#2 Posted : Friday, October 15, 2010 6:46:41 PM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
Can one apply and get a mortgage from Europe or the US to buy property here in Kenya?

We are a poor nation accessing mortgages at 15% while Americans a first world country accesses at 4.21% on a period of up to 30yrs!

Now why can't I get a mortgage from an American bank @6-8% and not feed our greedy banks?

BBI will solve it :)
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Chaka
#3 Posted : Friday, October 15, 2010 6:48:08 PM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
@2012,
Before attempting this ,apply for dual citizenzip first...
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PKoli
#4 Posted : Friday, October 15, 2010 7:00:55 PM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
2012 wrote:
Can one apply and get a mortgage from Europe or the US to buy property here in Kenya?

We are a poor nation accessing mortgages at 15% while Americans a first world country accesses at 4.21% on a period of up to 30yrs!

Now why can't I get a mortgage from an American bank @6-8% and not feed our greedy banks?


If the same bank was to factor in all the perceived risks associated with developing countries, the loan will given to you will be twice the amount. Then there will be the issue of currency exchange losses you might incur. I think it is better to try get the mortgage in Kenya
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slykat
#5 Posted : Friday, October 15, 2010 11:12:42 PM
Rank: Member

Joined: 2/20/2007
Posts: 359
The bank will definitely not like the idea of having the collateral for mortgage being outside their country of operation; the cost of repossession in case of default would be prohibitive. Thus, I don't think you can get such a mortgage.
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VituVingiSana
#6 Posted : Saturday, October 16, 2010 1:34:15 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,354
Location: Nairobi
Good luck... coz the issue is the SECURITY OF THE COLLATERAL... i.e. If you default what can the Lender do?
If it has no Kenyan presence, how will it go after you?

In addition, there are laws that prevent (or dissuade) cross-border collateralization...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Gordon Gekko
#7 Posted : Saturday, October 16, 2010 7:22:03 AM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
KQ get their financing from Exim Bank. So to stretch this point, it is possible to get a foreign loan for assets in Kenya?
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guru267
#8 Posted : Saturday, October 16, 2010 7:55:26 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Gordon Gekko wrote:
KQ get their financing from Exim Bank. So to stretch this point, it is possible to get a foreign loan for assets in Kenya?


@GG i cant believe you're comparing a listed company's ability to get a foreign loan to our ability to get foreign mortgages....

Mark 12:29
Deuteronomy 4:16
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sparkly
#9 Posted : Saturday, October 16, 2010 9:08:46 AM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
@2012 i guess the question should be can an american bank give you a mortgage? I see no problem but think of the challenges and cost of administering your mortgage, that of another customer in lesotho and another in somali. Additionally banking is highly regulated in most countries and the bank would have to comply with the minimum requirements in kenya.
Life is short. Live passionately.
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Gordon Gekko
#10 Posted : Saturday, October 16, 2010 10:33:23 AM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
@guru, forgive me, but my operative word was STRETCH. Just thinking out of the box. Remember in capitalism money never sleeps but moves globally. If foreigners can buy our securities, why can't they buy our mortgages?
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  | | Edit by user: Saturday, October 16, 2010 10:36 AM | Reason: Not specified
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