This is a secured loan product meant for empowering our customers to owning their dream homes. It is targeted at both employed and self-employed Retail Banking customers. The Bank finances outright purchase, equity release, and remortgage (refinancing of home loans from other banks)
FEATURES
Offered in Zambian Kwacha.
Competitive floating interest rates linked to the Bank of Zambia Policy Rate.
240 months maximum loan tenure.
K100,000.00 minimum loan amount for outright purchase while Equity release, and Remortgage
Unlimited maximum loan amount.
Loan repayments can either be through payroll or deduction from the salary account.
Arrangement fee.
Mortgage protection (credit life) and houseowners insurance. Mortgage protection to be paid at disbursement as a one off while house owners will be renewed annually at the cost of the customer.
40% debt service ratio.
For mortgages being financed using rental income, the customer can only use 25% of the same for the loan repayment.
Property should be habitable i.e. 100% completely finished property for outright purchase.
The Bank will only refinance performing house loans from other financial institutions.
BENEFITS
You are able to access financing that makes owning a home possible. You can get financing to purchase, construct or improve your home.
HOW TO GET IT AND WHAT TO EXPECT
Clean Credit Reference Bureau report.
1 passport size photo.
Certified copy of NRC, valid driver’s license or valid passport.
The Bank will only finance the purchase or construction of property in approved locations.
Valid valuation report by the Bank’s approved property valuers.
Letter of sale from the vendor.
Employed customers
You must have a salary account with the Bank with three consecutive salary credits to the account.
3 latest payslips.
You must be aged between 18 years and 60 years if employed on Permanent and Pensionable basis. If employed on contract, the maximum age for you to apply for a Zanaco home loan is 72 years where the loan must be paid off 3 months before expiry of your contract and 3 months before your 72nd birthday.
If your loan is going beyond your 54th birthday, you will be required to submit an additional letter from your employer confirming that you will not proceed on early retirement.
Valid work/residency permit for expatriates. The loan facility should expire three months before expiry of the work or residence permit.
Contract of employment where applicable.
You must be a confirmed employee without any pending disciplinary case that might lead to dismissal or separation.
Employer to sign Letter of Undertaking advising that they will continue to remit your salary to the Bank until your loan is paid off and you will not change your pay point without written approval from the Bank.
Written instruction to the employer assigning terminal benefits where applicable.
Self- employed customers
3 consecutive drawings credits to your personal account.
Personal account with Zanaco where drawings are credited on a monthly basis.
One year’s financial statement for your business to prove viability.
Customers with rental income
25% of monthly rental income will be used to assess qualification and repayment of the loan.
Rental income must be from a property other than the one being financed.
Valid Lease agreement.
Monthly rental income must be paid into your Zanaco account.
