Harambee Home Loan

Harambee Home Loan (HHL) is an affordable mortgage within the Kenya Mortgage Refinance Scheme and is available to all Harambee SACCO (HS) members who wish to purchase a single dwelling residential house either as a stand-alone house or a unit within a block of flats for purposes of owner occupation.

This mortgage facility is governed by the applicable terms and conditions (T&Cs) of the Harambee Home Loan (HHL).

HHL Product Features: -​

  • Loan to value ratio (LTV): The maximum loan amount applicable is up to 90% of purchase price or open market value of the subject property whichever is lower for refinance-able facilities. The member raises 10% proportion of the purchasing price.
  • Interest rate: The mortgage Interest Rate is 8% p.a for loans paid in less than 10 years and 9% p.a for loans over 10 years. Interest rate is calculated on a reducing balance.
  • Maximum loan term: Up to 25 years.
    For salaried members, the maximum loan term is 25 years (or 300 equal monthly instalments). An applicant qualifies for a loan term not exceeding the difference between their age and official retirement age of the employer or 25 years, whichever is shorter)
    For members from the informal sector (relying on business income), the maximum loan term is up to 15 years (or 180 equal monthly instalments). Maximum loan term in this category is therefore 15 years or the balance between the applicant’s age and the insurable age whichever is lower.
  • Minimum/Maximum Loan Amount: Kes 500,000.00 – Kes 4,000,000.00
  • Mortgage Protection Policy (MPP): The loan applicant is required to obtain an insurance policy to cover the loan amount against death or permanent total disability. This policy is known as Mortgage protection Policy. In the event of death or permanent total disability, the cover underwriter pays the remaining loan balance to the SACCO.
  • Domestic Package Insurance Cover (DP): This is an insurance cover on the property itself against theft and fire. In case of fire destruction, the insurance will finance rehabilitation to the original state but capped at Insurance Value as determined by a Valuer in Harambee Sacco panel.
  • Applicable security/collateral: Registration of charge on either a title deed or on a certificate of lease for properties within municipalities, towns and cities. Where a leasehold is offered, a minimum residual lease of 40 years (or not less than 20 years at completion of the loan) is applicable at the onset of the loan.
    We shall do not finance agricultural and ancestral land
    Specific approval of the board may be procured for property on agricultural land within the Nairobi metropolitan, subject to land board approval and the land not being part of an ancestral land. In this case the applicant may be required to procure a change of user for the land.
  • Loan Processing Fees: A processing fee of 1% of the approved loan amount is applicable upon acceptance of HHL Letter of Offer.
  • Mode of payment: The Home Loan is payable by check off at pay point or FOSA where salary is paid through FOSA.
  • Early Loan Repayment: Early principal pre-payments and early full loan redemption are allowed at no extra cost for the member/borrower.

How to Apply:-

The applicant is required to complete and sign Harambee Mortgage Application and provide the following documents.

Income Documents

  • Letter of introduction by the employer {to indicate employment terms (permanent/contract), designation & length of service, income details, and staff discipline status etc.}
  • Attach three months most recent and certified pay slips.
  • Attach six months most recent and certified bank statements for all banking relationships.
  • Irrevocable authority to the employer to deduct the monthly loan instalments via check off.

Identification Documents

  • A clear copy of national identity card.
  • A clear copy of KRA Pin Certificate.
  • Copy of marriage certificate/Affidavit is application is joint with spouse.

Property Documents

  • Letter of offer or draft sale agreement from the vendor spelling out the specific property details and the terms of the proposed sale.
  • A copy of title/lease for the proposed property.
  • Valuation report of the proposed security/collateral and carried out by a valuer in Harambee SACCO’s panel, shall be a post approval condition to be captured in the Harambee Home Loan letter of offer
  • Member required to pass salary through FOSA

You can inquire more about Harambee Home Loan by visiting any of our branches or calling our member support number +254 709 943 000.

You can also contact our Sacco Mortgage specialist to discuss the available options, ask questions, and receive personalized mortgage advice. Find Mortgage specialist.

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