Becoming a landlord will be easier next year for anyone earning a stable monthly income of up to Rwf 300,000.
The Development Bank of Rwanda (BRD) has allocated $267 million to affordable housing projects in the next five years.
Unlike in the past when BRD could principally lend to real estate developers, the bank has adopted a new strategy of lending to individual borrowers that want to build houses, but are hampered by lack of funds.
The bank says that it will lend to commercial banks which, in return, will receive affordable housing loan applications from their clients.
“We have realized that we also need to deal with individual applicants that want to own a house,” Alex Kanyankore, BRD Chief Executive Officer told KT Press.
Eligible applicants are only those earning from as low as Rwf 40,000 up to Rwf 300,000 monthly and want to build a house for the first time. None will be eligible if they are looking for a second house.
“We discussed this project at the 14th National Leaders Retreat, but it is being scrutinized to include all details,” said Kanyankore.
BRD has been funding affordable housing through real estate developers. Kanyankore said, the bank financed both Urukumbuzi and Cohaki real estates in Kininyinya, Gasabo district, Gate Hill estate (a.k.a Kwa Sekimondo) in Nyarugunga – Kicukiro district among others, at a tune of Rwf 10 billion.
“It is our contribution to the country’s 344,068 housing gap,” said Kanyankore.
Meanwhile, the Rwanda Housing Authority (RHA) last year started a project to identify civil servants that need a house on loan.
In January, RHA circulated an official template in all public institutions asking all civil servants to provide information about a house of their choice.
“The information will allow identification of potential clients, then develop housing projects according to the demand,” Leopold Uwimana, in charge of affordable housing unit at RHA told KT Press then.
The ultimate goal is to allow any civil servants to own a house of their ability.
“The projects will be proposed to developers to convince them of the market before they start building.”
The project was targeting Kigali and the six secondary cities and all other districts where a civil servant earns between Rwf 40,000 (case of teachers) and Rwf 600,000 monthly.