Advice on applying for a mortgage


Roadwin Chirara


* APPROACH your building society of choice’s interviewers for assessment;


* Know your borrowin

g parameters before going out to look for a house to purchase or land to build on;


* Submit a mortgage application form together with all relevant documents such as proof of income, agreement of sale in case of a purchase of built-up structure, building plans and quotations for those intending to build;


* An application fee shall be charged on submission of an application to the building society (Cabs requires $150 000);


* The application will go through a vetting process before being considered for funding;


* A valuator will go out to evaluate the structure and carry out an on-site inspection in case of a building loan;


* A decline of offer letter will be sent out to a client after the application has been evaluated and having gone through a committee stage for assessment;


* The process from application submission to offer stage or response on application takes an average of 10 working days;


* Once the building society offers to lend funds to a client, instructions to register a bond are sent out to the building society’s conveyancers;


* The conveyancers will carry out a deeds search to ensure that there are no caveats placed on the property, rates clearance from the local municipality, capital gains process with Zimra on behalf of the sellers;


* Registration of the bond will take place and the society will be advised accordingly with the client;


* The building society will then issue a letter of undertaking where necessary or wait for client to request for a drawdown where it is building loans of which the application will be successful;


* Currently interest charges at Cabs on residential properties funded under the Reserve Bank of Zimbabwe fund are at 20% per annum for both high and low-density properties;


* Loans under the Cabs fund are charged at 35% per annum for high-density properties while medium and low-density are charged at 70% per annum;


* Loans on existing houses in high, medium and low-density residential properties are being charged at 100% per annum;


* Schools and charitable organisations which require loans are being charged at 100% per annum at Cabs;


* Commercial and industrial properties are currently charged at 130% per annum, while housing developments are being charged at 70% per annum.