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Mortgage Finance

Mortgage Finance
General Terms

 

Mortgage Her Mortgage
Valuation & Inspection Fees 1% of the loan amount % of the loan amount
1% of the loan amount 2% of the loan amount 2% of the loan amount
Mortgage Interest Rate 10 to 12% Per annum (10% high density) (11% low density) (12% Refnance / Commercial) Up to 10% per annum
Loan Term Up to 15 years Up to 5 years Refnance/Equity Release Up to 15 Years
Deposit 25% upfront before loan disbursement 25% upfront before loan disbursement
Maximum loan Income dependent 40% Property value Refnance/ Equity Release Income dependEnt
Insurance Fees To be determined at application To be determined at application
Valuation Fees 1.5%
Application Fees
Repayments/ Income Should not exceed 25% of gross income Should not exceed 25% of gross income

Mortgage Loan Qualifcation and Repayment

Maximum loan = Gross income X 0.25 X 1000 14.75

Repayment = Loan amount X 14.75 1000 The repayment to income ratio will take into consideration other existing commitments.

Ordinary Mortgage Loans

For The Purpose Of:

• Purchasing and building on a stand

• Building on a stand or completing construction

• Home Improvements

• Copy of National I.D

Purchasing Requirements

• Customer to open an Account with POSB,

• Proof of acceptable income (Proof of Savings or Pay slip),

• Copy of Title Deed of the property,

• Agreement of Sale signed by all parties,

• Proof of Deposit required (25% of Selling Price)

• Proof of Survey where Title Deeds are not yet available,

• Copy of ID Card

• Fully completed mortgage application form

• Co-borrower should be spouse and Marriage certifcate is required

• Application fee

• 2 passport sized photos

Building Requirements

• Customer to open an Account with POSB,

• Proof of acceptable income (Proof of Savings or Pay slip),

• Copy of Title Deed of the stand,

• Proof of Survey where Title Deeds are not yet available,

• Copy of Approved Building Plans,

• Quotation for materials from reputable suppliers and labour,

• Copy of ID card,

• Fully completed mortgage application form

Home Improvement Loans

Requirements

• Customer to open an Account with POSB,

• Proof of Income (Pay slip)

• Copy of Title Deeds of the property,

• Quotations for the proposed improvements,

• Proof of Survey where Title Deeds are not yet available,

• Copy of ID Card

Refinance/Equity Release

Where borrowing is for any legal undertaking that can be fnanced on the security of an encumbered property. The maximum loan on the facility is 40% of the property, subject to qualifcation by income)

Terms

• Tenure- up to 5 years

• Interest rate- 12% per annum

• 40% commitment to income

• Maximum loan 40% of Property Value

Refnance Requirements

• Letter from employer confrming salary, retirement age and contract of employment which should be long enough to cover loan tenure

• Certifed copy of ID• Copy of the Title Deeds of the Property to be fnanced,

• Customer’s written Statement of Purpose,

• Proof of Acceptable Income to service the Loan e.g. Pay slip (in the case of a formally employed individual)

• Copy of Marriage Certifcate (In the case of a Joint Application by a married couple)

• Bank Statements for the past 3 months to which Salary is received

• Certifed copies of ID Cards,

• Completed and Signed POSB Mortgage Loan Application Form,

• Proof of availability of Legal Fees due for the process.

• Applicant(s) must be a POSB Account Holder (for at least 3 months)

Refnance Conditions

• Loan Application Fees (US$50.00 for Individual(s) or $200 for companies) payable on submission of Mortgage Loan Application,

• Valuation Fees 1% of proposed loan, payable prior to inspection of property and consideration of the application by the relevant Committee. (Can be made part of the loan)

• Mortgage Loan Establishment Fees 2% of the amount of loan approved. (Can be capitalised or be deducted from Loan proceeds)

• Monthly Mortgage Service Fees ($5.00 Capitalised until loan is paid up)

• Life Insurance Premiums (Payable annually - capitalised)

• House Insurance Premiums Payable annually – capitalised)

General Mortgage Requirements - Corporates

• Proof of registration (certifcate of incorporation, memorandum and articles of association, CR 14, CR 6 and current trading license)

• Proof of income-Audited fnancial statements for last 3 years, actual and projected cash flows for one year, management accounts, schedule of other bank facilities, debtors’ age analysis.

• Open a corporate account with POSB• Company profle

• Directors’ ID Copies -certifed

• Directors’ proof of residence

• Passport photos for directors

• Copy of title deed

• Board resolution to borrow

• Application fee

• Fully completed Mortgage Application Form

POSB School Mortgage Loans

POSB offers mortgages loans for purchasing, buildings and for refnance purposes. The Bank recommends provision of separate appropriate residential properties as security which is not the School premises. This is because education is a social good and therefore foreclosing/selling the school premises to recover a mortgage is not permitted under the laws of this country and is also regarded as anti-social behaviour.

School Mortgage Building Loan requirements:

• • An account with POSB

• Copies of School registration documents

• School Profle which include directors’ qualifcations, school administrators, skills and references,

•Copy of ID card for the selected representatives

• Minutes of a meeting resolving to borrow and security being used for the application

• Copy of title deed of unencumbered residential property which will be used as security for the loan

• Bank Statements for the past 6months (for non-POSB accounts),

• 3 years fnancial statements

• Current management accounts

• Current aged debtors and creditors reports

• Income Projection Statements for 1 year

•Schedule of other Bank credit facilities,

• Fully completed Mortgage Loan Application Form,

• Application fees $200.00 (required upfront)

• Valuation fees 1% of loan applied (required upfront)

• Copy of Approved Building Plans

• Quotation for materials from reputable suppliers and labour,

• Bill of Quantities

• Signed stage form (where construction has already commenced)

• Completed mortgage application form

POSB Diaspora Mortgages

POSB offers diaspora mortgages to Zimbabweans living and working abroad.

Terms

• Tenure- up to 10 years

• Interest rate- 12% per annum

• 15% commitment to income

• 2% loan administration fees General Requirements• A notarized afdavit signed by a notary public confrming identity, residence and work status

• Letter from employer confrming salary, retirement age and contract of employment which should be long enough to cover loan tenor

• Valid Work permit (covering at least tenure of mortgage)

• Residence permit

• 6 month bank statement from a bank into which salary is paid

• Credit Report (From local credit bureaus and diaspora credit bureaus)

• An active POSB bank account from which loan repayments will be deducted. Client may be funding the account monthly through transfers from their foreign bank.

• A local address to which the bank (POSB in this case) will serve documents

• Special power of attorney for person signing the documents on behalf of applicant and their key documents.

• Certifed Copy of Valid Zimbabwean Passport

• Certifed Copy of Zimbabwean National ID

• Certifed Copy of Zimbabwean National ID for power of attorney

• Application fees US$50.00 ( non-refundable)

• An account with POSB (at least 3months)

• Valuation fees 1% of loan

• Valid tax clearance (ZIMRA)

• Letter stating how repayments will be made Additional Requirements when:

a. Purchasing

• 40% deposit

• Copy of title deeds for property to be mortgaged

• Agreement of sale

b. Building

• Copy of Title Deed of the stand

• Copy of Approved Building Plans

• Quotation for materials from reputable suppliers and labour

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