In a significant move aimed at easing access to homeownership, the National Housing Corporation (NHC) and the People's Bank of Zanzibar (PBZ) have formalized a deal to provide mortgages for prospective homebuyers.
The agreement, inked on Wednesday, establishes a framework for house seekers to secure loans from PBZ and purchase property from NHC. With this partnership, NHC expands its network of partner banks to 22, amplifying opportunities for individuals seeking housing finance.
During the signing ceremony held in Dar es Salaam, Mr. Hamad Abdallah, Director General of NHC, emphasized the benefits of the collaboration. "The partnership enables NHC customers to access loans to purchase houses in various areas," stated Mr. Abdallah, underlining the significance of the initiative in addressing the housing needs of Tanzanians.
NHC is actively engaged in implementing diverse projects nationwide, including notable developments like Morocco Square, 711 Kawe, and the Samia Housing Scheme (SHS) in Dar es Salaam. Mr. Abdallah highlighted the surging demand for housing, noting that 556 out of 560 houses in the Kawe project were sold just last week, indicating a robust market appetite for residential properties.
Dr. Muhsin Salim Masoud, Managing Director of PBZ, underscored the bank's commitment to providing competitive mortgage rates with flexible repayment terms. "PBZ offers loans at low rates, as low as 13 per cent," affirmed Mr. Masoud, reflecting PBZ's dedication to supporting affordable homeownership solutions.
Notably, NHC recently sealed 21 contracts with investors to demolish outdated structures and construct modern developments. The projects include 16 buildings in Kariakoo, one in Upanga, Dar es Salaam, two in Mwanza, and one in Iringa, signaling NHC's proactive approach towards urban renewal and infrastructure development.
The collaboration between NHC and PBZ signifies a strategic effort to address the housing deficit and promote sustainable homeownership solutions across Tanzania, reflecting a concerted commitment towards fostering inclusive growth and development.
NHC Director General, Mr. Hamad Abdallah, addresses invited guests during the signing ceremony.
PBZ Managing Director, Dr. Muhsin Salim Masoud addresses invited guests during the signing ceremony.