Bear one thing in mind. This is purely business. As long as you pay on time and dont default, u r on right track. Otherwise its purely business.So thats where the catch is. But overall its a good offer.If you can pay the same amount of rent u r paying currently as your mortgage,than i guess its ok.

Yes it is ideal to own one's house but this investment should be evaluted like all others i.e compare cost vs benefit. our banks still charge interest rates that are way too high no wonder they rake in billions each year. sometimes and very often renting makes better financial sense. unless of course u work for a bank and get very favourable rates, or are willing to put up a sizeable downpayment thus reducing how much you borrow, and are also willing to pay off the mortgage in the shortest time possible. i say rent and invest your money in the bourse. for many people though the decision to buy a house is mostly emotional security.

Another catch is that the bank will require you to open your salo account with them so that immediately your salo lands there,they debit the mortgage installment..

@My 2 Cents;
Have you factored-in the price appreciation of houses? And also the ever-rising rents?

Experience has shown me that rent in Nairobi doubles every 7 - 10 years. Thus expect the 20k flat to cost about 40k by 2020.

BTW, is this the New Nyayo Embakassi old the older one? I know that the first phase mortgage is Sh28,341 exactly and that's where you cane get 20k - 25k rent, depending on you negotiation skill.

These houses were fetching 12k - 15k rent in 2002....but the mortgage was still the same Sh28,341.

People assume that it is easy to save for a house and pay for it in cash and they forget two things:
FIRST; that it is very difficult to muster enough discipline to save, and
SECOND: that the prices of houses are also increasing.

Let me illustrate with my own personal experience:

In 2002, I signed up for a mortgage to buy the flat below the one I was living in. I had been paying Sh16k rent. The purchase cost was sh2.5m and the the mortgage installments came to Sh31k pm.

Today, the rent for the area averages 30k - 35k, but the mortgage is still 31k.

My eighbour recently sold her flat earlier this year for sh7.5m

In view of the above, taking a mortgage does make sense; doesn't it?

kweli kabisa.