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Business Reporter
THE country’s largest building society by assets and market share, CABS has increased its mortgage tenure from 10 to 20 years with effect from March 1.
CABS managing director Mr Kevin Terry said the increase was meant to help ease the country’s housing backlog through a more affordable facility.
The increase of CABS’ mortgage tenure to 20 years will see its clients enjoying a payback period that is double other players are offering on the market.
“The environment has improved to a large extent. The public confidence in the banking sector has grown due to an increase in customer deposits and we believe that with increased funding, banks will be able to offer increased lending to the productive sectors in our economy,” he said.
Mr Terry said an increase in the mortgage tenure means that there will be a significant reduction in the monthly mortgage instalments.
The mortgage repayment period has been increased to ease the pressure of monthly repayments to customers, he added.
“The move will also go a long way in making our mortgage product affordable,” he said. CABS General Manager responsible for retail banking, Mr Ken Chitando said all CABS customers who have, or who qualify for a mortgage loan account can benefit from this extended tenure. This facility is, however, upon request.
“Our customers need to apply for an extension of their mortgage tenure,” said Mr Chitando.
CABS, has since 2010 disbursed US$$125,7 million in mortgage finance for 440 units, mostly low cost.
There is an estimated backlog of 1,5 million units of housing stock in the country. Harare alone has only 500 000 units which means there is a serious shortage of housing stock. Most real estate agents have been selling mostly existing stock, which is just changing hands, with fewer developments which raise the need for more housing stock.
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