Mortgage Guides

How to Get a Mortgage in Kenya

Your complete step-by-step guide to securing a home loan — from understanding requirements to closing the deal.

1. What is a Mortgage?

A mortgage is a loan specifically used to purchase property or land. You borrow money from a bank or lender, and the property serves as collateral until you repay the loan in full — typically over 10 to 25 years.

💡 Key Insight: In Kenya, most mortgages cover up to 90% of the property value. You provide a 10% deposit, and the bank finances the rest.

2. Mortgage Requirements in Kenya

Before any bank approves your home loan, you must meet specific criteria. Here's what most lenders require:

• Age: 18–65 years (loan must be repaid before retirement)
• Employment: Confirmed job (probation period complete) or 2+ years of business financials for self-employed
• Income: Monthly repayment should not exceed 30-40% of your gross income
• Credit History: Clean CRB record (no defaulted loans)
• Deposit: 10-20% of property value (some banks accept land title as collateral)
• Property Valuation: Bank-approved valuation report

⚠️ Important: If you have an existing loan (car loan, personal loan, etc.), banks will deduct those monthly payments from your available income before calculating mortgage affordability.

3. How Much Can You Borrow?

Banks in Kenya typically use the debt-to-income (DTI) ratio to determine your maximum loan amount. Want a personalized estimate? Use our free mortgage calculator →

4. Costs Beyond the Loan

Many first-time buyers forget these extra costs. Budget for:

• Valuation Fee: KES 15,000–30,000
• Legal Fees: 1.5-2% of property value
• Stamp Duty: 2-4% of property value
• Insurance: Mortgage protection + property insurance
• Processing Fee: 1-2% of loan amount

💰 Example on a KES 5M property: Additional costs = KES 150,000–250,000. Plan for at least 5-10% of property price in extras.

5. Step-by-Step Application Process

1. Find a property — Get an offer letter or sale agreement from the seller.
2. Choose a bank — Compare rates from KCB, Equity, Co-op, etc.
3. Submit application — Provide ID, payslips, bank statements, KRA PIN, CRB report.
4. Bank valuation — Bank sends valuer to assess the property.
5. Approval & offer letter — Bank issues mortgage offer letter with terms.
6. Legal process — Your lawyer and bank's lawyer draft the charge/mortgage deed.
7. Disbursement — Bank pays the seller directly.
8. Repayment begins — Monthly installments start the following month.

✅ Pro tip: The entire process typically takes 4-8 weeks. Government steps (stamp duty, land registry) often cause the longest delays.

6. Choosing the Right Bank

Don't just look at the advertised interest rate. Compare: interest rate type (fixed vs variable), loan-to-value (LTV), processing fees, early repayment penalties, and customer service. View current rates from top Kenyan banks →

7. Common Mistakes to Avoid

• ❌ Only looking at the interest rate — hidden costs matter too
• ❌ Forgetting extra costs — stamp duty, legal fees, valuation add up (5-10%)
• ❌ Applying to one bank only — you lose leverage. Apply to 2-3 banks and negotiate
• ❌ Borrowing the maximum allowed — leave room for rate increases
• ❌ Ignoring insurance requirements — banks demand life insurance on the mortgage

📞 Still have questions? Contact our team →