dfcu Bank empowers Ugandans with tailored home loan solutions

Bank has stood as a beacon of financial empowerment in Uganda, cementing its position as a development finance institution and a trusted partner for individuals and businesses.

With a rich legacy rooted in supporting Ugandan aspirations, the bank continues to innovate, offering tailored solutions like mortgages to meet evolving housing needs.

We sat down with Sebastian Murokozi, Manager Home loans, to explore how dfcu Bank is making home ownership a reality for Ugandans.

Q: What is a home loan?

A home loan is a financial solution designed to support individuals in acquiring, building, or refinancing a home. At dfcu Bank, we understand that every customer’s housing needs are unique.

That’s why we offer a range of home loan products, including buying residential properties, constructing or renovating homes, equity release for personal investments, refinancing existing loans, and land purchases. This diversity ensures that no matter your housing goal, dfcu Bank has the right product for you.

Q: Who qualifies for a dfcu home loan?

Eligibility for a dfcu home loan is inclusive and tailored to accommodate various financial profiles. Salaried employees confirmed in their roles, self-employed individuals with at least two years of sustainable business cash flow, Ugandans living in the diaspora with verifiable income, and expatriates working in Uganda with valid permits are all eligible. We aim to empower clients from diverse backgrounds to achieve their homeownership dreams.

Q: What benefits come with a dfcu home loan?

Our home loans are designed to provide maximum value and convenience. Borrowers enjoy long repayment periods of up to 20 years, competitive interest rates in both local and foreign currencies, and high loan amounts of up to 85% of the property’s open market value. Repayments are calculated on a reducing balance basis, making them predictable and manageable. Additionally, clients benefit from a dedicated relationship manager, a swift 14-day approval process, flexible repayment terms, and free financial advisory services.

Q: Does dfcu Bank sell properties directly?

While dfcu Bank does not sell properties directly, we have forged partnerships with some of Uganda’s leading property developers and agents. These collaborations give our clients access to an extensive portfolio of high-quality residential and commercial properties in prime and emerging locations.

Q: Who are some of dfcu Bank’s developer partners?

Our esteemed partners include Build Net, HK Properties, and Universal Multipurpose. Beyond these, we collaborate with developers such as Knightsbridge Avenue, Fakhruddin Properties, Royal Palms Aesthetics, Comfort Homes, and Pearl Marina. These partnerships ensure that our clients have access to a variety of properties, ranging from luxury apartments to family homes, each offering state-of-the-art amenities like swimming pools, children’s play areas, meditation spaces, and scenic balconies.

Q: What are the related costs of acquiring a mortgage?

When obtaining a mortgage, clients should anticipate costs such as valuation fees, security perfection fees, and stamp duty, which is payable to the Uganda Revenue Authority. Additionally, insurance is required to cover mortgage protection, credit life, and potential property risks like fire or natural perils.

Q: How much do I need to contribute as a borrower?

For property purchases, borrowers are required to contribute at least 15% of the property’s market value. For construction projects, the personal contribution increases to 30%. These contributions ensure financial alignment and a manageable commitment for the client.

Q: Can I transfer my mortgage from another bank to dfcu Bank?

Yes, dfcu Bank facilitates seamless mortgage transfers. Once approved, we handle the transfer process, settling the outstanding mortgage with your current lender and acquiring the title for security. This allows you to enjoy dfcu’s competitive rates and superior customer experience.

Q: Can I get a mortgage to buy land or invest in rental properties?

Absolutely, dfcu Bank offers mortgages tailored for land purchases, with the land itself acting as security. For those looking to develop rental properties, we provide financing for up to eight residential units, provided they are on the same title. This flexibility caters to both personal and investment-driven clients.

Q: What happens if I face challenges repaying my mortgage?

dfcu Bank understands that financial difficulties can arise. In such instances, we engage with our clients to explore restructuring options that provide more manageable repayment terms. Our goal is to support clients in overcoming challenges and maintaining their financial stability.

Q: What sets dfcu Bank’s mortgage offering apart?

Beyond the competitive rates and flexible terms, dfcu Bank prioritizes the customer experience. From personalized guidance provided by our relationship managers to our partnerships with top-tier developers, every aspect of our mortgage service is designed to make homeownership seamless and rewarding.