Nipate

Forum => Kenya Discussion => Topic started by: RV Pundit on August 11, 2020, 06:41:06 PM

Title: Mortgage at 7%
Post by: RV Pundit on August 11, 2020, 06:41:06 PM

https://www.businessdailyafrica.com/economy/State-to-offer-mortgage-at-7pc-in-Sept/3946234-5607018-m0hbr9z/index.html

Title: Re: Mortgage at 7%
Post by: gout on August 12, 2020, 11:28:27 AM

50 Billions is negligible but could be a good start but not with frauds such as Shelter Afrique jumping on in the gravy train.

Title: Re: Mortgage at 7%
Post by: hk on August 14, 2020, 07:51:19 AM

Quote from: RV Pundit on August 11, 2020, 06:41:06 PM

https://www.businessdailyafrica.com/economy/State-to-offer-mortgage-at-7pc-in-Sept/3946234-5607018-m0hbr9z/index.html

The usual African government led solutions without solving the underlying structural problems. The taxpayers will be subsiding this because the rates aren't market based.  The quasi government company will be raising money in the capital markets then lend out at a lower rate than the prevailing market rate? This is direct copy and paste of fannie mae and fredimac of USA, however Fannie mae borrows money at a higher rate than Treasury bills rates.
The solution would have been to introduce securitization law that'd allow banks and mortgage company to resell Mortgage backed securities to the market. Thus freeing up capital to lend to more borrowers.