15 African international locations with the bottom mortgage rates of interest – Enterprise Insider Africa

August 19, 2022 By admin

Enterprise Insider Version
Nearly each grownup wishes to personal their very own house. In spite of everything, having shelter over one’s head is a primary want, in keeping with Abraham Maslow’s hierarchy of wants. No person needs to spend the remainder of their life paying hire to some landlord.
Sadly, proudly owning a house anyplace in Africa could be very troublesome. And that is resulting from a number of components, together with the truth that the mortgage business in Africa is not actually accessible and dependable sufficient to serve those that want it. Additionally, there may be the problem of excessive mortgage rates of interest.
Little marvel many Africans would moderately construct their very own homes from scratch. Sadly, this course of would usually take years as a result of excessive price of doing so. Within the 2018 open entry ebook Housing Market Dynamics in Africa, authors El-hadj M. Bah, Issa Faye and Zekebweliwai F. Geh detailed the development price conundrum in Africa, writing:
“The financing of housing growth, like many different growth points confronted by African international locations, is kind of difficult. That is primarily as a result of lack of sufficient circumstances or assets to facilitate such financing. The housing finance market in Africa is uncovered to a variety of dangers.”
The inefficiency of the housing finance market in Africa is among the main causes of the housing deficits on the continent. Now, two questions loads of Africans (particularly younger adults) ask themselves are:
Maybe these are questions solely banks, regulators and lawmakers in Africa can reply.
What’s a mortgage rate of interest?
Based on The Steadiness, “a mortgage rate of interest is a proportion of your complete mortgage stability that is paid on a month-to-month foundation till your mortgage mortgage is paid off, alongside together with your principal cost. It is a element in figuring out the annual price to borrow cash from a lender to buy a house or different property.”
Word that some African international locations have a few of the highest mortgage rates of interest on the earth. For example, Zimbabwe’s mortgage rate of interest is as excessive as 50%. However, there are nonetheless some international locations with comparatively low mortgage rates of interest. We now spotlight 15 such international locations, courtesy of stats obtained from Statista.
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