Mortgage or home loans are essential these days. Like most people, we all dream of becoming a homeowner, but very few achieve this. If culture permits it, becoming a homeowner can be said to be a part of the “Cameroonian Dream.” Learning a thing or two about how mortgage works will set us on the straight path to achieving this dream.
Mortgages provide the option of paying for a house in installments. With the Cameroonian landscape in view, it is essential to understand the process of getting a mortgage loan. We have explained the process involved in becoming a homeowner with a mortgage below:
How To Get A Mortgage or Home Loan In Cameroon?
Save a deposit
Know that you will need to put down a deposit if you want to buy a home with a mortgage. The percentage deposit will vary depending on the property owners or the financing institutions.
Seek out house-buying schemes
It will be of better advantage if you employ the services of house-buying schemes like Credit Froncier Cameroon or private house-buying schemes popularly known as ‘developers.’ They know the best deals and offers and better home ownership financing solutions.
Plan for the long term
Mortgages require long-term commitments. You should make a budget with your mortgage payments in mind. Your mortgage payments should not be more than one-quarter of your income. Structure your monthly expenses from your income and see how much you can pay for mortgages monthly. You can use the services of mortgage calculators.
Read Also: Real Estate Business in Cameroon.
Search for a home
After preparing your deposit and weighing several mortgage offers. It’s time to look for a home with mortgage payment plans. You might likely have this sorted after employing the inquiry into the services of house-buying schemes.
Obtain a mortgage loan
With a deposit in place and your budget structured. The formal talks can begin and signing off the necessary documents for your new home. Obviously, you must have done the essential research in the right places.
Who can apply for A Mortgage Loan?
Anyone can apply for mortgages in Cameroon, provided you’re gainfully employed or earning an income.
Here is what Mortgage loan companies in Cameroon are interested in:
- Your monthly income and expenditure
- The value of the property you want
- Your debt profile
Why is it challenging to get a mortgage or home loan in Cameroon?
Life is all about risk, and as with money, the riskier it gets. Several factors make it challenging to apply for mortgages:
Poor debt profile
With poor debt profiling, lenders cannot predict and ascertain how well a loanee can keep up with monthly payments. While a person with a poor debt profile will not qualify for a mortgage loan.
Check Out: How to Buy a House or Landed Property in Cameroon?
Insufficient deposit
A sufficient deposit directly affects the mortgage you can apply for and the house you can buy.
Other Factors
- Need for more knowledge and understanding of how a mortgage works.
- Lack of collateral for the loan you wish to apply for.
Conclusion
You might want to consider how much to deposit to get a mortgage before going into it. However, there isn’t a particular limit to the deposit amount; it depends on the borrowers’ objectives. A smaller deposit means you’ll have to seek a mortgage cover covering a high percentage of the property’s worth.
Few mortgages cover a high percentage of properties because of the risk involved. Also, they come with unattractive fees and interest rates. It is advisable to save as much money as possible in deposit to get the best mortgage offers.
Suggested: Cost of Building a House in Cameroon.