Exactly exactly just How losing you could be cost by an income significantly more than a residence

Exactly exactly just How losing you could be cost by an income significantly more than a residence

The couple took the following rational action that numerous young Kenyans starting on their jobs give concern. He bought a home, benefiting from the bank’s staff rates of interest.

The master plan would be to rent the apartment out, positioned in among the city’s gated estates, and make use of the earnings to produce repayments in the Sh5.5 million home loan.

2 yrs later on, but, Kimani’s world turned upside down as he ended up being let go by the lender. Yet again he had been not a member of staff, the attention prices in the home loan spiked through the preferential three % to advertise prices.

This implied that to clear their home loan, their month-to-month repayments would need to triple inside the same payment duration, by the end of that he will have had to part with over Sh21 million when it comes to home in the place of Sh6.8 million.

The bank auctioned the house and listed him with credit reference bureau despite a grace period of more than a year where he tried to land another job and resume repayments. More →