A mortgage is an agreement by which a bank, in most cases, lends money to someone or an organization; in exchange, they take the debtor’s property, and the debtor will get back the title of his property when the payment of the loan is made.
Getting a mortgage in Rwanda is one of the critical questions you have to ask yourself when buying a house. Purchasing property is an excellent financial investment and almost always requires a mortgage to pay for it. Keep reading to learn about the process of applying for a mortgage in Rwanda and the documents that are required.
Creating an account with a bank
If you want to apply for a mortgage in Rwanda, you have to first have either an existing account with a particular bank or create one. Having a current account in a bank will make it easier for your application to be accepted, so it is advisable to apply in your bank if the conditions are favorable.
A work contract
A work contract is essential because it shows that you have a steady income and indicates your income to determine if your application can be accepted.
A bank statement
A bank statement is a vital document that shows how much income you receive from the work contract. It also helps you keep a record of how much money you have and how it is spent. It can also alert the bank about unusual transactions such as large withdrawals.
Certificate of marriage and celibacy
A marriage certificate is also essential because it helps the bank determine whether you have a partner who is going to help you pay off the loan, or it can also help the bank determine if you have fewer expenses as someone who is not married, which will show that you don’t have a lot on your plate so you will be able to pay off the loan.
A marriage certificate can be acquired at the Rwanda Governance Board or Irembo.
The sales contract between the buyer and seller
When the bank asks for these documents, it’s not because they want to know your financial status but more about them having a right to know about the agreement you had with your seller for the property you are buying. This contract should include the price at which you purchase the property and other contracts or payments made between both of you.
Evaluation Report of the property from a valuer
This document is obtained from the property’s owner’s valuation. If you sell a house valued at 100 million Rwandan francs and the bank values it at 70 million Rwandan Francs; the bank evaluation will not give you a mortgage. Before you sign that contract, do a property valuation. This is also a necessary step to ensure that you are getting a good deal.
ID or Passport
While applying for a mortgage, identification documents are crucial for security purposes.
Application letter for mortgage
Once you have all the documents, you can go ahead and write an application letter. When applying, be vigilant of your real estate agent; it is safer if the real estate agency is known for professionalism. This will make your application have a high chance of being accepted because
Most people often forget about the passport photo. However, the bank requires you to attach your passport photo with your other documents.
If you have all the above documents and requirements then you are all set to get a mortgage in Rwanda.