A local financial institution, BancABC, has acquired a US$7 million line of credit from a regional housing finance and development institution, Shelter Africa aimed at mortgage financing.Under the arrangement, the local financial institution will receive US$7 million for on-lending to low and middle income earners who intend to build houses.
The package is aimed at supporting housing delivery in the country following enquiries the bank received from several individuals.
Speaking at a signing ceremony for the agreement in Harare, BancABC Managing Director, Mr. Hashmon Mutemera said the mortgages have repayment terms of up to 10 years and disbursements are scheduled to begin by the end of this month.
Shelter Africa Managing Director, Mr. Alassane Ba said the firm which has projects in 25 African countries identified Zimbabwe as a country with great potential for partnership in the housing market.
The US$7 million facility comes at a time when locals are struggling to raise money to build houses due to cash constraints affecting the market since the adoption of the multi-currency regime.
Other housing mortgages on the market are expensive as they have stringent conditions and repayment periods of up to 90 days.