Essential Information on Mortgages

When considering a mortgage, it’s crucial to understand the various options available to you. Oasis Capital, a dedicated microfinance company, offers tailored mortgage solutions to meet diverse needs, whether you’re buying a new home, building on your land, or seeking refinancing or equity release options in Kenya.

1. Understand the Different Types of Mortgages

Educate Yourself: Before choosing a mortgage, it’s important to familiarize yourself with the different types available:

Home Purchase Mortgages: Ideal for those looking to buy a home.
Construction Mortgages: Suitable if you own land and need funds to build a home.
Refinancing and Equity Release: These options can help you leverage your existing property’s equity for other financial needs.

Use Mortgage Calculators: Tools like mortgage calculators are invaluable for understanding your total mortgage costs and helping decide which loan suits your financial situation best.

2. Decide Between Fixed Rate and Adjustable Rate Mortgages

Fixed-Rate Mortgages: If you prefer predictability, a fixed-rate mortgage ensures your principal and interest payments remain unchanged throughout the loan term. This stability is perfect for those who value consistency in their financial planning.

Adjustable Rate Mortgages (ARM): If you’re open to taking risks, an ARM adjusts with the economy’s interest rates. Your payments will fluctuate accordingly, potentially lowering your costs when rates decrease.

Combined Rate Mortgages: Start with a fixed rate, then switch to an adjustable rate after the initial period. This option blends stability with flexibility.

3. Know Your Budget

Debt-to-Income Ratio: Understanding how much mortgage you can afford is critical. Lenders typically use your debt-to-income ratio to determine this. Ensure your mortgage payments do not exceed 28% of your income, and your total debt payments do not surpass 36% of your income.

4. Choose the Right Lender

Selecting a Lender: Oasis Capital stands out by offering:

Variety of Loan Options: Matching your specific needs with the right mortgage product.
Flexible Repayment Terms: Adaptability to fit your financial circumstances.
Accessibility and Support: Easy access to services and robust customer support.
Competitive Rates: Transparent and affordable rates with minimal hidden charges.

Expected Fees and Charges:

Application Fees: Includes internal fees like appraisal fees and ledger fees, and external fees such as legal fees, stamp duty, and valuation fees.
Mortgage Plus Fees: May include negotiation fees, additional legal fees, and higher stamp duties depending on the mortgage type.

Oasis Capital is committed to providing you with all the necessary tools and information to make informed decisions about mortgages. Our expertise and comprehensive support ensure that you choose the best mortgage solution to fit your long-term financial goals.