How To Access Credit (Accessing Credit - The Lifeline To Real Estate)

Owning a home is a dream for many, and at www.property.co.zw, we are committed to helping you achieve that goal. Mortgage financing is one of the key tools banks provide to assist buyers in acquiring property, making homeownership more accessible.

While mortgage financing in Zimbabwe has faced challenges in the past, the system is slowly reviving, offering more opportunities for homebuyers. Here’s what you need to know about securing a mortgage in Zimbabwe.

Why Consider a Mortgage?

Buying a home requires significant financial investment, which is often difficult for many individuals to afford upfront. Mortgages provide a solution by allowing buyers to spread payments over time, making homeownership more manageable.

Steps to Getting a Mortgage in Zimbabwe

1. Check Mortgage Availability with Your Bank

Not all banks offer mortgages, so it’s important to:

• Inquire about loan options and packages
• Understand eligibility criteria
• Review repayment terms and current interest rates

2. Get Pre-Qualified

Pre-qualification helps you determine what you can afford before you begin your property search. The bank will assess:

• Your income vs. expenses
• Credit history and score
• Existing debts
• Deposit size and proof of savings

3. Loan Affordability Assessment

• Banks assess affordability by ensuring monthly repayments do not exceed 30-40% of gross monthly income.
• Your deposit size impacts your approval chances—most banks require 10-30% of the loan amount.

4. Meet Common Bank Requirements

You will typically need to provide:

• Proof of funds for the deposit and additional fees (legal, valuation, application)
• An active salary account with the bank for at least 3 months
• Identification and documentation for age verification (loan term often depends on years to retirement)

5. Understand Credit Checking in Zimbabwe

The Reserve Bank of Zimbabwe (RBZ) has implemented a credit scoring system. A good credit score significantly improves your chance of loan approval.

Types of Mortgage Loans Available in Zimbabwe

1. Building Finance

• Suitable for:
  ✅ Buying and building on a serviced stand.
  ✅ Construction on already owned titled land.
• Some banks partner with construction companies & material suppliers to offer these loans.

2. Property Purchase

• The most popular mortgage option for buying an already existing residential property.

3. Property Improvement Loans

• Ideal for homeowners looking to renovate or upgrade their property.
• The property itself serves as collateral for the loan.

4. Equity Release

• Available to individuals & businesses that own property.
• Allows property owners to borrow against their property’s value to access liquidity for other financial needs.

5. Diaspora Mortgages

• Designed for Zimbabweans living abroad who want to purchase property back home.

Why Get Pre-Qualified Before House Hunting?

Getting pre-qualified offers several advantages:

• Helps define a realistic budget for your property search
• Avoids wasted time viewing properties outside your price range
• Improves your loan approval chances during the transaction process

Take Action Today

• Contact your bank to check if you qualify for a mortgage.
• Understand the loan options available to you.
• Choose a repayment plan that fits your financial situation.

Start your homeownership journey today! . Visit www.property.co.zw for available properties and make your dream home a reality!