Mortgage Setup Flawed, Says Property Developer

By Rosemary Mirondo

Dar es Salaam — A short mortgage loan repayment period is making it difficult for Tanzanians to realise their home-ownership dreams, a developer has said, calling upon banks to find a lasting solution to the challenge.

Tanzania is estimated to have a housing deficit of three million units and growing at a rate of 200,000 units per annum. The National Housing Corporation (NHC) estimates that Tanzania needs around 200,000 units annually worth Sh19 trillion to meet the demand.

However, commercial banks, which are required to play an increasing important role in reversing this unfortunate trend, are reluctant to offer more affordable repayment options and as a result, most low income earners remain property renters.