Mortgage Application Process in Kenya: Step-by-Step Guide

The mortgage application process can be broken down into six steps. Here are the steps a mortgage application goes through until disbursement.

In recent months, there has been a noticeable surge in the demand for bungalows, maisonettes, and land compared to apartments. If you aspire to own a home of your own, obtaining a mortgage can be instrumental in fulfilling your dreams.

Getting a mortgage is one of the ways you can use to finance your dream home. Fortunately, the mortgage application process doesn’t have to be overwhelming or confusing. We understand that embarking on the journey of homeownership can be scary, particularly for first-time buyers. It’s common to feel uncertain about where to begin, and there are valid concerns about encountering dubious deals and real estate scams along the way. Questions may arise, such as is this house fully approved? Will I start making payments and then realize it’s not legal? Moreover, the concept of a mortgage itself remains misunderstood by many.

However, we are here to simplify the process and alleviate your worries, that is why we shared a beginner’s guide to mortgages. Our aim is to provide clarity and guidance throughout your home-buying journey, ensuring that you make informed decisions. By demystifying the mortgage process, we aim to make homeownership an attainable goal for everyone.

What steps are involved in the assessment of my loan?

The mortgage loan application process in Kenya generally involves the following steps:

Find your dream property

Before beginning the mortgage application process, it’s essential to identify a property that suits your preferences and meets your requirements. BuyRentKenya provides a user-friendly platform where you can explore a wide range of available properties. Take your time to browse through the listings, consider factors such as location, size, amenities, and price, and select the property that resonates with you.

Remember to thoroughly evaluate the property, taking into account factors such as its condition, market value, potential appreciation, and any potential risks or challenges associated with the location or structure. It’s advisable to seek professional advice or consult with a real estate agent to ensure you make an informed decision. By choosing a property you like, you can move forward with confidence and proceed to the subsequent stages of the mortgage application process.

Application and document submission

The applicant submits all the necessary documents to the mortgage banker and completes a mortgage application form. Both employed and company applicants need to fulfill certain requirements during the mortgage application process. While the list is not exhaustive, it includes the following:

For Employed Applicants:

  • Three copies of current pay slips or proof of income.
  • Copy of ID and two passport photos.
  • Copy of Kenya Revenue Authority (KRA) PIN certificate.
  • Certified copies of 6 or 12 months (depending on the financier) bank statements.
  • Letter from the employer confirming details such as position, length of service, retirement age, income, and employment terms.
  • Copy of the title for the property offered as security.
  • Offer letter or sale agreement if available.

For Company/Self-employed Applicants:

  • Two years of audited financial statements (for limited companies) and management accounts, if applicable.
  • Certified copies of 12 months’ bank statements.
  • Memo & Articles for limited companies.
  • Registration Certificate or Incorporation Certificate.
  • Copies of director’s identity document/passport.
  • Copy of Director’s Kenya Revenue Authority (KRA) PIN certificate.
  • Business PIN for limited companies.
  • Copy of title deed if available.
  • Sale agreement if available.

It’s important to note that additional documentation and requirements may be necessary based on the specific circumstances and the policies of the lender. Therefore, it is advisable to consult with the mortgage banker or lender directly to ensure that all the necessary documentation is provided for a smooth application process.


Upon receiving the documents, the mortgage banker analyzes them and conducts due diligence on the applicant. The credit officer processes the application after receiving it. If everything is in order, the bank’s signatory duly executes a formal approval or offer letter.

Acceptance of the offer letter

The applicant has 30 days to accept and return the offer letter after meeting the conditions specified. The bank instructs a valuer to assess the property and provide a valuation report. The applicant pays the valuation fees during this stage.

Conveyancing and charge

Once the applicant accepts the offer, the bank instructs its appointed lawyers to begin the conveyance or perfection of security documentation. The applicant pays stamp duty and legal fees. The title deed is transferred to the buyer’s name and charged to the bank. The bank holds the original title deed until the mortgage is fully paid. It’s important for the applicant to request a copy of the title deed from the bank’s lawyer as it won’t be retrieved until the loan is cleared.


The lender disburses the funds to the beneficiary within 14 days of receiving the perfected security documents. The applicant needs to meet the drawdown conditions, clear legal fees, and pay initial insurance premiums, including mortgage protection insurance, house owner’s comprehensive insurance, and retrenchment cover.

These stages represent a general overview of the mortgage application process, and specific requirements and procedures may vary depending on the lender and individual circumstances. It’s crucial to consult with mortgage lenders and legal professionals for accurate guidance throughout the process.

How long does the whole mortgage finance process take?

The duration of the mortgage finance process can vary, but it typically takes several weeks to a few months. This timeline includes the steps of application submission, document review and prequalification, property valuation, credit assessment, and approval, and finalizing the loan agreement. Factors such as the complexity of the application, the efficiency of the lender, and the completeness of the required documentation can influence the overall timeline. It is advisable to consult with the specific lender for a more accurate estimate of the timeframe involved in the mortgage finance process. Here are some of the mortgage lenders in Kenya.

What is the interest rate for mortgages in Kenya?

The Central Bank of Kenya (CBK) data showed mortgages were priced from 7.1 percent to 15 percent.

Do you have more questions related to the mortgage stages? Feel free to reach out below.

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