Finance
Choosing the housing finance company (HFC) is a crucial stage in the home loan process. It is imperative to choose the financer with utmost care and proper consideration of its past track record since the customer is entering in a long-term relationship with the HFC when he takes a home loan.
This financial years union budget has many things to offer to the common man. The massive tax waiver, increase in the tax benefit limit, and liberalised investment option will definitely lead to make the growth tempo more inclusive. Apart from these, in the leather bag of the finance minister there was also a great respite for the home loan seekers. From the prospective of potential home loan seekers the tax sops are at an all time high.
Housing Finance was incorporated on 8th November 1965 as per the Banking Act, under the name the Housing Finance Company of Kenya. Our founding shareholders are the Commonwealth Development Corporation (CDC) and the Kenyan Government. In 1992, Housing Finance Company of Kenya offered part of its equity to the public and became a quoted company on the Nairobi Stock Exchange. Since then, shareholding of the company has changed partly through a share issue on 26th February 1999 when 30 million government shares were put on offer to the public and on 11th July 2007 when the CDC Group agreed to sell all its shares to Equity Bank Limited and British American Investments Company (Kenya) Limited (BAICL).
Apart from issues such as interest rates, repayment period, home loan agreement and eligibility, customers need to check the hidden costs that may come from the housing finance companies. Prepayment penalty is undoubtedly one of the most expensive hidden costs encountered by borrowers. Home loan companies that charge this penalty should be avoided if one expects to prepay the loan due to increased cash inflows in near future.
