Having your own home is always better from the monthly rentals, though the purchasing power may hold back until you reach a financial stability period. Mozambique has a growing housing finance sector. The country with 68.8% population residing in rural areas is rapidly urbanizing at a rate of 3.28% per annum.
Maputo is the capital, is the key real estate economy driver of the country! The capital flow tends to typically pass through the capital, Maputo, which is the locus of political power and the city out of which most businesses operate.
In regards of home loans in Mozambique, the housing finance in the country is limited, with mere three percent of the population able to access formal credit and over 90% of the population is without a bank account. While the ones with a bank account are likely to use any of the five biggest banks, which collectively account for 87% of the financial sector.
Certain banks offer unsecured construction and renovation loans, for a tenure of three to five years. They are generally provided at higher interest rates. In some cases, the lenders require a guarantee or other form of collateral.
On the flip side, some banks in order to make home loans easier and quicker, offer leasing or rent to buy schemes, through which the property is made available on a rental basis to a tenant who has an option to buy the property at the end of the lease. If planning on buying a home in the country, do not forget to check out best home insurance in Mozambique for property security.
As per The Centre of Affordable Housing Finance in Africa (CAHF), there is a separate arrangement for Fund Housing Promotion (FFH), which has several banks in the loop to make mortgage loans accessible for beneficiaries of FHH projects, though the interest rates lie on the higher side, up to 23%.
Invest in your home, with attractive loan offers in Mozambique.