In a bid to address the various challenges met by property owners, agents, customers and other groups involved in the buying and sale of property, the Real Estate Association of Rwanda (REAR), has moved to train practitioners.
Speaking to The New Times, REAR’s president, Charles Haba, said that most of the agents in the country have limited knowledge and skills of the trade, hence providing poor service to clients.
“So many agents are not trained and professional in this field, which is the reason we have started such trainings,” he said.
“The industry keeps growing, and we need to help them get professional.”
The participants were trained in issues concerning mortgage loans; which is basically buying houses and land on a bank loan that is paid over a specified period of time.
Kenya Commercial Bank’s Head of Mortgage, Beatrice Cheve, pointed out that there was rising demand for houses especially from the lower and middle income earners.
The public, however, still have misconceptions that mortgages are given to buyers of big houses and big projects only.
“To modest income earners, we provide land loans, payable in five years, and we can also give construction loans that cover 80 percent of the construction cost.”
In the interactive session, Cheve explained pre-requisites to acquiring mortgage including proper identifications of the clients, proper documentation of the property to be bought, among others.
She further explained the insurance of property to be purchased under mortgage arrangement, is compulsory.
“Insurance firms continue servicing mortgage loans in case the borrower dies before completing payment. In case of accidents that cause partial or total disability, the insurance company contributes to payment depending on the extent of damage to the consumer,” she said.
Haba added that REAR had intention of doing advocacy for modest income clients to benefit from the mortgage schemes.