dfcu Bank has launched a home loan offer priced at 16.9 per cent a year, with a 60-day repayment holiday, as borrowers face an uncertain interest rate outlook. The launch follows Monday’s decision by the Bank of Uganda to hold its Central Bank Rate at 12 per cent, and warning that borrowers could face a tougher repayment period due the weakening shilling. The central bank said shilling lending rates averaged 17.5 per cent in the quarter to September and expects them to edge up. Under the offer, customers of dfcu can borrow up to 85 per cent of a property’s open market value and repay over as long as 20 years, according to a bank press statement. The bank will also finance the insurance premium and says it will confirm qualifying applications within 48 hours, subject to terms and conditions. Those building a home must contribute at least 30 per cent of the construction cost. The bank is targeting the upfront costs that often slow buyers down. Beyond a deposit, buyers must pay for valuation, insurance and other transaction costs. Financing the premium and delaying the first repayment by 60 days are meant to ease that pressure. “Buying a home is not simply a question of whether a customer qualifies for a particular loan amount,” said Sebastian Murokozi, the manager Home Loans at dfcu Bank. He said the monthly repayment must sit alongside other obligations for years, and the bank wants customers to structure the commitment at a level they can sustain. The offer covers more than first-time buyers. Financing is available for completed homes and land, construction and structural renovation, mortgage refinancing and equity release. Investors can borrow to develop up to eight rental units on a single title. Existing homeowners can move a mortgage from another lender to dfcu or borrow against property they already own. Eligible borrowers include salaried and self-employed customers, Ugandans in the diaspora with verifiable income, and expatriates working in Uganda on valid permits, according to the statement. The bank has also lined up developers and agents that offer concessions on transaction costs. They include Build Net, HK Properties, Universal Multipurpose, Knightsbridge Avenue, Fakhruddin Properties, Royal Palms, Aesthetics, Comfort Homes and Pearl Marina. Eligible buyers purchasing through HK Properties, for example, have legal and professional fees waived. The bank urged borrowers who later struggle with repayments to engage early so restructuring options can be considered. Murokozi said spreading the cost over time lets customers “make the move into home ownership sooner.”The post dfcu launches home loan product appeared first on The Observer Media Ltd.