If you have been considering purchasing or developing property, BBS Bank will be happy to advise you on how to go about it. BBS Bank currently charges an interest rate from as low as 7.25%.
The maximum repayment period is 25 years for individual borrowers. However, borrowers may choose to repay the mortgage in a shorter period depending on their ability to do so. It is required that in the case of individual borrowers the loan should be fully repaid by the time the individual reaches the age of 65. The maximum loan any borrower may qualify for depends mainly on three factors:
- Borrowers gross income
- The assessed open market value of property to be purchased or developed
- The age of the applicant
There are various types of loans that the bank may consider:
Free Hold Land Financing
This loan allows you to purchase undeveloped land which has unrestricted ownership. Customers are given a period of seven years to repay the loan.
An ordinary loan is provided for the purchase of an already existing and complete house from any seller and the loan is secured by registering a bond favour on behalf of BBS Bank.
A building loan is provided to construct a new property, renovate and develop an existing property or finish an incomplete property.
Industrial /Commercial Mortgage Loan
An Industrial loan is provided to develop or acquire an industrial property. Commercial loans are acquired to buy or build shopping malls, office blocks etc.
Requirements for industrial loans and for commercial loans are the same. In addition to lending against urban immovable properties, BBS Bank also lends against the security of properties in rural areas (villages).
Borrowers are first required to convert their plots from customary rights to common law by obtaining a Tribal lease on the property and having the piece of land surveyed by registered land surveyors. This will, however, be subject to the applicant meeting the bank's basic requirements.
BBS Bank currently lends to both citizens and non-citizens. In the case of non-citizens, BBS Bank can only lend a maximum amount of the 75% of the securing property’s open market value. In the case of citizens, the normal maximum loan is 90% of the securing property’s open market value.
Further Advance/ Equity Loans
Further advance/Equity Loans is provided as an additional loan for the extension of an existing property or bond the same property to use the money for other property developments.
The requirements for a further advance application vary, depending on the purpose for which the loan is sought.
- Citizens Proof of income (salary slip, etc)
- Bank statement for the past 3 months
- Identify documents (Omang or Passport)
- Marital status (copy of marriage certificate, decree of divorce)
- Affidavit confirming marital status
- Non citizens Copy of passport Copies of residential or work permit
- Copies of employment contract.
- Offer letter from seller/Deed of sale
- Sellers' copy of ID, Spouse copy of ID if married
- Copy of Title Deed
- Valuation report
- Structural Survey
- Tender Evaluation
- Approved building plan
- 3 qoutations from construction company ( labour and material inclusive)
- Completion and submission of the Society’s standard application form.
- Submission of project memo which includes cash flow projections.
- Submission of tenders, approved plans and/or letter of offer.
- Submission of past financial statements (if the application is in respect of an existing company).
- Payment of valuation fees which depends on the value of property to be purchased or developed.