THE Central Africa Building Society (Cabs) says it has advanced new mortgage loans totalling $9,7 billion, an increase of 117,3% over the previous financial year. <
The building society said this is a new record in mortgage lending.
Cabs chairman Enos Chiura said applications from 1,083 borrowers were processed of which 234 were in respect of loans on properties in high density areas and 849 for purchase and building both low density residential and commercial properties.
“The acute shortage of affordable housing continues to be problem, and the increased costs together with the shortage of building materials, further reduced the delivery of new housing units, particularly in high to medium density areas where serviced stands with individual title are scarce,” Chiura said in his annual report for the period ended June 30.
Cabs increased mortgage rates on two occasions during the year in an attempt to offset the escalating costs of operation that it had experienced.
The chairman said 957 loans were advanced for the acquisition of existing residential properties while 66 loans were advanced for the erection of or improvement to existing dwellings.
“A further 60 loans were advanced for commercial and industrial purchases and development,” Chiura said.
Overally, the Society’s mortgage advances grew at $14,7 billion or 45,9% of the industry total of $32 billion as at June 30.
Chiura said inflation continued to drive the value of properties upwards resulting in a significant decline in the loan to value ratio of properties mortgaged.
This in turn, had a positive effect on loan servicing by borrowers with only 5,3% of loans being in arrears at year-end.