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We have the
following information on how to secure mortgage facilities
locally.
Non-resident
Ethiopians finance residential homes and Apartments.
In Construction and
business Bank in Ethiopia provides mortgages for residential
Houses and apartments was the Construction and Business Bank and
other privet Banks. Under ideal conditions the bank can loan up
to Birr 1 million per person provided the borrower covers a
third of the total construction cost from his/her own source.
The mortgage is payable within a maximum period of 15 years.
However, its exact amount and duration is determined by taking
into consideration the borrower’s situation and monthly income,
his or her age, marital status and situation of their general
health.
Loan Calculation
The bank requires loan applicants to submit documentary evidence
of employment, Copy of passport, marital status, age etc. at the
time of application. In the case of Ethiopians residing abroad,
all documentary evidence has to authenticate by an Ethiopian
Embassy or Consulate in the area.
Borrowers can
process their mortgages with the bank either in person or
through duly authorized representatives. The property itself
will be put up as collateral for the loan.
There is a grace period of 6-12 months during which borrowers
are expected to service interest payments only. After that,
monthly payment on the principal and interest shall be effected.
• Kara kore Real
Estate P.L.C shall submit these documents to the bank on behalf
of borrowers.
• The bank will
borrow for each individual up to 1 million birr for 15 years
loan, the client has to cover 50% of the construction cost and
the bank will loan 50 %. The bank will follow up the
construction by there technical engineers checking each and
every thing from structure, sanitary, electrical and finishing
work.
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