Govt, CBZ partner for low-cost housing

Lincoln Towindo
Government has roped in CBZ Bank to provide mortgages to thousands of low and middle-income earners wishing to purchase properties under its Home Ownership Scheme.
Other banks will be co-opted and bonds might also be floated to unlock further project funding.
Under the arrangement, applicants should register with the Local Government, Public Works and National Housing Ministry and lodge a downpayment with CBZ Bank.
The bank will mortgage the properties over five to 20 years, while the ministry facilitates construction and land servicing.
Phase 1 will benefit 1 500 people in Harare’s Dzivaresekwa, Mabvuku, Tafara, Budiriro and Prospect suburbs, and other parts of Zimbabwe will benefit in subsequent phases.
Hundreds of home-seekers registered for the project within days of an advertisement having been flighted in the Press.
Local Government principal director Colonel (Retired) Joseph Mhakayakora told The Sunday Mail: “We have partnered CBZ Bank under the Home Ownership Scheme to facilitate the handling of beneficiaries’ contributions and mortgages.
“More financial institutions will come on board soon. We want this national project to reach every corner of the country, and there has been an overwhelming response since we flighted the Press advertisement (last week).
“Beneficiaries will open individual accounts with the bank and make periodic contributions. The bank will then advance mortgages that are payable over five to 20 years, depending on the beneficiaries’ capacity.
“We are also looking at other financing models that can relieve much of the burden from home-seekers. Options like bonds are being considered. We will make the relevant announcements once we have reached a decision.”
Government introduced the Home Ownership Scheme in September 2015 to provide affordable housing to workers, many of whom have been on the national housing waiting list for years.
Many people have been duped of large sums of money by bogus developers and co-operatives.
In Dzivaresekwa, Tafara and Prospect, land has been identified for construction of 640, 524 and 880 flat units respectively.
Zim-Asset targets delivering 313 368 housing units or serviced stands by 2018.
At least 1,5 million people are on the national housing waiting list and many of them live in the capital.