Declining interest rates good for mortgage market – Stanbic bank

Stanbic Bank Zambia Head Personal Markets, Mbinga Kafunya says the declining interest rates in the country will have a huge impact on growing the local mortgage market.

Speaking during a panel discussion dubbed: “Revolutionising the Zambian mortgage market” at the ZamReal Property Forum in Lusaka, Mr Kafunya says interest rates play a cardinal role in growing the local mortgage, which faces several challenges.
He says the local mortgage market has a lot of potential, with major economic metrics pointing to a healthy mortgage market.
Mr Kafunya says interest rates will continue to come down if the kind of stability being seen in the market now continues.
He has hailed the interventions of the central bank which he says have created an environment where it’s possible to see the mortgage market pick up.
Mr Kafunya states that banks are responding positively by reducing interest rates based on the intervention measures the central bank has taken.
He adds that to grow the mortgage market, the country needs to deal with several challenges faced by the mortgage market, apart from that of interest rates.
Mr Kafunya says the local mortgage market faces inherent challenges including high interest rates, low uptake, and a huge mismatch between mortgages costs and rental income.