Etini
Valued Contributor
Mortgages are loans given for the purchase of properties. The properties purchased act as collateral for the loan. That is to say, if the borrower can't pay back the mortgage amount, the lending institution seizes the property, sells it off to recoup their mortgage loans amount.
In Africa, mortgage is not common. It is very rare to see people engage in mortgage funding. That's why the rate of home ownership is quite low. Some of the factors that contribute to the low practice of mortgage funding is
1) Lack of laws governing properties: In some African countries, there are no specified laws that govern the ownership of property. This makes it very difficult to fund a mortgage because we don't know who has the formal rights to a given property.
2) Poverty: In some African countries z the rate of Poverty is so high and this makes it impossible for people to afford mortgage. A large portion of the population can't even afford to make a down payment on mortgage.
3) Poor Credit System: In most African countries, there is no robust credit system that can make the provision of loans less risky.
What do you think can be done to improve mortgage in Africa.
In Africa, mortgage is not common. It is very rare to see people engage in mortgage funding. That's why the rate of home ownership is quite low. Some of the factors that contribute to the low practice of mortgage funding is
1) Lack of laws governing properties: In some African countries, there are no specified laws that govern the ownership of property. This makes it very difficult to fund a mortgage because we don't know who has the formal rights to a given property.
2) Poverty: In some African countries z the rate of Poverty is so high and this makes it impossible for people to afford mortgage. A large portion of the population can't even afford to make a down payment on mortgage.
3) Poor Credit System: In most African countries, there is no robust credit system that can make the provision of loans less risky.
What do you think can be done to improve mortgage in Africa.
