A guide to navigating the Kenya mortgage process

The road to homeownership can be complex to navigate, but with a trusted partner and insight into the process, you can start this journey with confidence. Here is a step-by-step overview of the Kenya mortgage process to begin. 

Step 1: Before you submit your mortgage application

When you begin looking for your new home, consider meeting with one of our Kenya mortgage experts to review your budget and loan options.¹ Our team can help you determine how much you can afford, and calculate your ideal down payment and your potential loan amount. Understanding how much to budget for will help you long after you close on your mortgage — it helps to ensure you can manage each payment comfortably while you work toward paying off the full mortgage amount.

After you have found your perfect home and made an offer, you are ready to submit an application for a mortgage with UNFCU. You can do this by scheduling an in-person meeting with us, sending us an email, or calling +254 20 7621044.

Step 2: Preliminary review & approval

In this early stage of the mortgage process, we review your goals and financial well-being to evaluate the right loan type and amount for you.

What to expect:

• Loan officers review your application for eligibility
• If eligible, UNFCU issues a letter of intent for your review and signature

Step 3: Valuation & due diligence

During this step, the property is independently valued and reviewed to confirm its market value and ensure it meets UNFCU's lending requirements. The due diligence process also helps identify any legal or physical concerns that may affect the purchase or the mortgage.

What to expect:

• UNFCU instructs your choice of a registered valuer in its panel to conduct due diligence on the property
• The valuer submits a detailed report and a copy is shared with you

Step 4: Approval and down payment

At the approval and down payment step, your finances and the property's details have been verified. 

What to expect:

• If the valuation is found to be satisfactory, a final approval is granted by UNFCU
• You may then proceed to make the down payment and sign the binding sale agreement with the seller

Step 5: Legal/Post-approval phase

Your approval is conditioned on signing certain documents and meeting all of the following requirements:

• A loan agreement outlining terms and conditions is issued by UNFCU
• UNFCU instructs a law firm from its panel of approved advocates to prepare the security documents
• The 1.0% processing fee is paid by you to UNFCU
• The firm coordinates with you and the seller's advocates to agree on the mortgage completion documents, including a financier's undertaking
  • A financier’s undertaking is a written commitment by UNFCU to provide the loan funds once agreed conditions are met
  • In the Kenya mortgage process, these conditions include receipt of title documents registered in your name, with UNFCU’s security interest
• UNFCU requires certain property insurance and life/mortgage protection insurance to be obtained and assigned to UNFCU
• The property transfer and charge documents are prepared and lodged at the Lands Registry for registration
• A government valuer assesses the property for stamp duty purposes
• Once the transfer and charge are registered, the security documents are delivered to UNFCU’s advocates for custody

Step 6: Disbursement of loan proceeds

Prepare to become a homeowner! In this final stage of the mortgage process, you will receive the funds needed to purchase your new home.

What to expect:

• Once all legal conditions are met, UNFCU disburses the loan funds
  • Funds are released directly to the seller or their lawyers; facilitated by the appointed UNFCU lawyer

Congratulations — you are now a homeowner!

Once you have completed all of the steps above, you are officially a new homeowner. Your mortgage payment (principal and interest) starts at the beginning of the next month, accruing interest daily from the time the loan was disbursed. 

Our team will be available to you for assistance even after the mortgage process is completed. You can reach out to us at any time to receive guidance, request statements or clarifications on your repayment schedule, or even discuss refinancing, restructuring, or other mortgage options.