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How to Get a Mortgage (Bond) in Zimbabwe

Quick Summary

  • What it is: A long-term loan from a bank or building society to buy property.
  • Also Known As: A "Bond."
  • Currency: Mortgages are almost exclusively offered in US Dollars.
  • Key Requirement: A stable and verifiable income in foreign currency (USD).
  • Deposit: You will need to pay a significant deposit upfront (e.g., 20-30% of the property value).

Getting a mortgage, commonly known as a "bond," is the primary way to finance the purchase of a house. Due to the economic climate, the requirements are very strict, and mortgages are almost always denominated in USD.

Step 1: Eligibility and Pre-Qualification

Before you even start looking for a property, you need to find out if you can qualify for a mortgage.

  1. Stable USD Income: Lenders will require proof of a consistent salary or business income in US Dollars. This is the most important requirement. ZWL income is generally not considered for mortgage applications.
  2. Good Banking History: You need a well-maintained bank account (preferably a Nostro FCA) showing regular income.
  3. Affordability Check: The bank will assess your income versus your monthly expenses to determine how much you can afford to repay each month.
  4. Deposit Savings: You must have saved up a deposit. Banks will typically only lend 70-80% of the property's value, meaning you must pay the remaining 20-30% yourself.

Step 2: The Application Process

Once you have found a property and signed an Agreement of Sale (often with a clause making the sale conditional on securing a bond), you can formally apply.

You will need to provide:

  • Completed Application Form from the bank.
  • Proof of Income: Recent payslips and/or audited financial statements for your business.
  • Bank Statements: Usually for the last 6 months.
  • Copy of the Agreement of Sale for the property you intend to buy.
  • Copy of the Property's Title Deed.
  • Your KYC Documents: National ID and proof of residence.

Step 3: Property Valuation and Approval

  1. Valuation: The bank will send a professional valuator to assess the property to ensure it is worth the asking price. You will have to pay for this valuation.
  2. Approval: If your application is successful and the valuation is acceptable, the bank will issue a formal offer letter detailing the loan amount, interest rate, and monthly repayments.
  3. Registration of the Bond: The bank's lawyers will register a mortgage bond against the property's Title Deed. This gives the bank legal security over the property until the loan is fully repaid.

Common Pitfalls to Avoid

  • Underestimating the Costs: The total cost is not just the deposit. You also need to budget for legal fees, valuation fees, and stamp duty, which can add up to a significant amount.
  • Unstable USD Income: If your USD income is not consistent or formally documented (e.g., you are paid in cash), it will be very difficult to get a mortgage.
  • Property Without Title Deeds: Banks will not lend money for a property that does not have clean, verifiable Title Deeds.