NMB advanced mortgage loans hit 230bn/- in seven years

NMB Bank has advanced mortgage loans worth over 30bn/- in seven years that have played a pivotal role in the national aspiration to boost ownership of decent homes in the country, a senior official of the bank said last week.

The Head of Personal Banking, Aikansia Muro, told participants of a workshop on better housing organised by the bank here on Friday that the top lender is ready to support efforts of the government in fulfilling the home ownership ambition.

 Muro said mortgages extended by NMB Bank range between 10m/- and 700m/- million. She told stakeholders in the construction industry value chain that the bank has a special programme to support housing improvement through affordable and fast home loans.

“Since inception of this programme about seven years ago, we have extended housing loans worth TZS 33 billion, which have boosted homeownership levels in the country and enabled our clients to own decent houses,” Ms Muro noted in her presentation during the NMB Housing Day that also included a sectoral exhibition.

A mortgage market report published by the Bank of Tanzania (BoT) last week listed NMB Bank among the top five housing loans giants in the country. According to the latest Tanzania Mortgage Market Update, local homes finance registered a 1.41 per cent growth in the value of mortgages as of 31st March 2022.

BoT said the outstanding mortgage debt at the end of quarter one this year increased to TZS 503.74 billion equivalent to US$218.07 million as compared to TZS 496.61 billion equivalent to US$ 215.06 million reported on 31st December in 2021.

“To us, home loans are a key aspect of the lending services we offer our clients that give them four options to finance their housing needs,” Ms Muro noted adding:

“The first option are loans for house purchasing, the second is the construction mortgage, the third is a loan to complete house construction and lastly is using a house as collateral for securing a loan,” she explained.

The NMB personal banking expert said the lender has taken several measures to support the government’s housing improvement efforts. This include lowering mortgage interest rates from 17 per cent to between 14 and 16 per cent.

The bank has also lowered the salary threshold for eligible borrowers to TZS 300,000 from TZS 700,000, she added.

The guest of honour at the event was the Chief Government Valuer, Ms Evelyne Mugasha, who lauded NMB Bank for helping the authorities to address the shortage of decent homes in the country.

The official said latest BoT statistics show that Tanzania has a shortage of three million decent houses while the country every year faces a housing demand of 200,000 new units.

 Mugasha said by organising the housing day and workshop, NMB has shown its commitment to support the Sixth Phase Government endeavour to improve housing and lives of Tanzanians in general.

According to her, decent houses and homes are pivotal aspects of national development. Equally important, she added, are friendly interest rates on mortgages like the ones offered by NMB.

“The government recognizes the importance of a healthy housing sector in national development. It is along this line of thinking that NMB Bank readily provides mortgage loans so that people can build and own better homes,” Mugasha noted in her remarks.

The NMB Central Zone Manager, Nsolo Mlozi, said they have been engaging housing stakeholders to share notes on the best ways to address sectoral challenges, including the issue of affordable mortgages.