Tanzania mortgage market on right track

Efforts to have a fully fledged mortgage market that will increase supply of affordable housing are on track, the Tanzania Mortgage Refinancing Company (TMRC) said.

The TMRC Chief Executive Officer, Mr Oscar Mgaya, said in Dar es Salaam that mortgage market will address the constraints to accessing housing credit particularly to urban residents, thus bringing construction industry to the new heights.

“While still having a long way from having a fully fledged mortgage market in Tanzania, some significant progress towards that direction in almost three years of its operations have been achieved,” he said.

Mr Mgaya said with the approval of 60 million US dollars new financing from the World Bank’s highlyconcessional International Development Association (IDA) was an important milestone towards viable mortgage finance market for affordable housing.

“Indeed this is good news and it was only possible because both the World Bank and the government are satisfied with the progress made by TMRC,” he said adding that TMRC is grateful to both the World Bank and the government for their continued support.

The additional IDA financing will allow the Housing Microfinance Fund (HMFF) to be in a position to start building microfinance institutions’ capacities to develop and administer housing microfinance products.

According to him, the improved access to financing has contributed to the growing supply of affordable housing coming onto the market.

The TMRC provides a critical link between investors and housing markets, ensuring the needed capital is invested in growing Tanzania’s housing resources.

The Company provides long term financing to mortgage lenders which has encouraged an increasing number of banks to offer mortgages.

The number of banks now offering mortgage loans has grown from only eight banks in 2010 to 19 in 2014 and mortgage repayment periods increased from the maximum of seven years that was previously offered to 20 years that banks offer now.
Source: Daily News, reported from Dar es Salaam, Tanzania

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