Housing Finance Bank hosts mortgage clinic, amid turbulent times
The Housing Finance Bank of Uganda (HFCU) will between December 2-4, run a mortgage clinic. The clinic will take place at the Wampewo Avenue, Kololo headquarters of the Bank. The clinic is intended to provide information to all prospective customers who are planning to take our mortgage financing for various purposes.
The clinic will bring together different experts on the mortgage value chain to meet prospective customers to provide them information on various aspects of mortgage financing in Uganda. This is the second time the bank is running a similar clinic. The first time was in 2014.
The mortgaging sector in Uganda currently offers four main products: residential mortgages, commercial, land purchase and construction financing. This is major development over the last few years because up to ten years ago, only residential mortgaging was available in the market.
By June 2011, 9 out of 22 commercial banks in the country offered mortgage financing, up from one bank in 2002. Currently the top players in the morgatge service provision are: Housing Finance Bank ( from the 1980s), DFCU Bank (from 2002), Stanbic Bank (from 2004), Barclays Bank (from 2004), Standard Chartered Bank (from 2004), Equity Bank (since 2007), Centenary Bank (from 2007), Kenya Commercial Bank –KCB (from 2011) and Bank of Africa (from 2011).
The latest report on the Mortgage financing in Uganda (published in 2012) authored by Dr. William Kalema and Duncan Kayiira states that by the end of 2010, mortgage portfolio in Uganda had grown to UGX 1.65 trillion (about US$660 million), up from UGX 32.4 billion (US$12.9 million) in 2002.
Although no data exists on the mortgage situation after 2011, it is a well-documented fact that 2011-2015 has been a turbulent banking period characterized by high interests rates, high inflation, high fuel prices and up and down runs of the dollar. All of these translate to low loan services consumption. It is therefore unlikely that the mortgage sector maintained its bullish trends prior to 2010 during this period.