Mortgage Loan Repayment Costs U.S.$99 Per Month in Zimbabwe

By Golden Sibanda

With housing affordability a major issue in Zimbabwe, research shows that it costs about $99 per month to repay a housing mortgage loan for the least cost newly built urban house. The study by the Centre for Affordable Housing Finance Africa, says a newly built low-cost urban house would average $18 000 in Zimbabwe.

It means a prospective home seeker needs about $99 per month to service a mortgage loan for the least cost house in Zimbabwe, which many cannot afford. According to the research, Morocco has the cheapest mortgage loan rates at $46 per month while Democratic Republic of Congo has the highest at about $281.

The research shows that more than half of Zimbabwe's urban dwellers may not be able to afford to repay mortgage loans at current terms and conditions of lenders. Zimbabwe has a national housing backlog of 1,25 million units, for urban residents.