Annual growth rate for the Mortgage market has slowed to 11.3 per cent in the quarter ended March, compared to the 34 per cent posted on the corresponding period last year, due to changes of market conditions envisaged to improve in the near future.
According to the Bank of Tanzania (BoT) mortgage market updates, the total lending by banking sector for the purposes of residential housing during the period was 416.85bn/-.
This represents a very slight decline of 0.02 per cent from total mortgage lending of 416.94bn/- of the preceding quarter. The overall year on year growth of 11.3 per cent is attributed to increased awareness on mortgage loans products offered by banks and other awareness creation initiatives under the Housing Finance Project (HFP).
Further, the increased competition as new lenders enter the market has also contributed positively to the observed growth.
During the period under review, 29 different banking institutions were offering mortgage loans, with a new entrant in the market during this quarter being Letshego Bank (T) Limited. The number of mortgage lenders is expected to increase further as more lenders continue to launch their mortgage loan products.
During the quarter, the mortgage market was dominated by five top lenders commanding about 70 per cent of the mortgage market. Equity Bank was a market leader commanding 24 per cent of the mortgage market share, followed by Stanbic Bank (15 per cent), Bank M (14 per cent), CRDB (10 per cent) and Azania Bank (7 per cent).
More positive developments are expected in the market with more banks now launching their mortgage loan products as competition in the traditional banking products continues to intensify.
Demand for housing and housing loans remains extremely high but is constrained by inadequate supply of affordable housing and high interest rates. During the first quarter, interest rates offered by mortgage lenders were reported to range between 16 and 19 per cent.
Daily News
No comments:
Post a Comment