• How it works

    Benefits of this loan
    • Flexible repayment tenure of up to 20 years
    • Enjoy property ownership before retirement age
    • The interest you pay on a mortgage loan is much lower than that on a personal loan
    • Hassle-free construction with guaranteed availability of funds for every stage of construction
    • You remain the legal owner of your property while you use the funds from the loan to fulfil your needs
    • Allows you to finish construction in the shortest possible time due to availability of funds
    • Up to TZS500 million to help you build your dream property

    • Debt service ratio goes up to 55% if you take the Absa credit

      card as well

    • Product offers a flexible repayment tenure of up to 20 years

      (aligned with retirement age)

    • Funds will be advanced to you, then to contractor in tranches, that

      are aligned with BoQ report provided/stages of construction

    • Property will be evaluated at beginning of construction and then

      after property is complete to ensure full utelization of funds 

    Fees charged
    • Valuation fee starting from TZS600,000 (dependent on property value)
    • Life insurance 0.5% per year (0.9% if it is a joint mortgage)
    • Property insurance 0.15% per year (charged against property value)
    • Arrangement fee of 1%
    • Early repayment: 3 months' interest (minimum TZS.500,000)
    • Government charges and legal mortgage registration fees (varies on each transaction)
  • Requirements

    • You must be between the age of 21-59 years

    • You must have a valid title deed and be the legal owner (one of the

      legal owners) of the plot securing the mortgage

    • You must be in employment (contractual or permanent) for not less

      than 6 months and be confirmed

    • Monthly salary will need to be routed to an Absa transactional

      account to cover monthly mortgage repayments

    • Bank must approve appointed contractor and an agreement


  • Documents required

    • Copy of title deed of land to be constructed on
    • Original contractor agreement document
    • Copy of house plans and/or structural drawings for the property
    • Building permit from relevant authority
    • Bill of quantities (BOQ) report
    • Valuation report detailing land and foundation value to arrive at lifetime value (LTV)
    • Absa mortgage loan application form together with required application documents for loan qualification
    • National ID card/passport/voter's ID or driving license
Need more help?

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+255 (0)746 882 000 (Network charges apply)

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