The Real Estate Institute of Zimbabwe (REIZ) has bemoaned the high mortgage lending rates in the country saying they are too steep compared to regional counterparts. Mike Majuru the president of the REIZ said:
The current mortgage lending rates of 12 percent per annum over a 10 to 15 year period on a United States dollar is quite steep compared to say, South Africa, which attracts the interest of around 10 percent over 25 years is charged on the Rand. That alone makes our repayments high.
In other economies, it is possible for one to make a choice of either purchasing a house through a mortgage or rent a property with repayments and rentals being in the same range.
In a nutshell, the issues on mortgage finance hovers around the interest rates, the loan period or tenure, the 25 percent deposit, low levels of income, proof of employment and title deeds.
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