Mortage Products
Home Purchase Mortgage-HPM
Group Scheme Construction   Stage Payment
Home Completion Mortgage-   HCM
Home Improvement Mortgage –   HIM
Home Equity Mortgage- HEM
Buy Land and Build own Home   Mortgage - BLBH
Construction Finance Mortgage   (CFM)
Construction Stage Payment   Mortgage (CSPM)
 
Mortage Products :
Group Scheme Construction Stage Payment
The Product:
This is the option of the HPM designed to assist first time buyers to assist first time buyers who are unable to raise the 20% deposit required to qualify for the Full HPM option.
Description:
The maximum loan amount is USD$120,000or its equivalent in Leone.
The maximum term for this facility is 20 years for both Flexible repayment loans and standard conventional reducing balance loans for resident Sierra Leoneans and 10 years for Non-resident Sierra Leoneans.
Application Requirements:
  • Must be between the ages 18-60 years.
  • At least three non-refundable monthly mortgage payments required and in some case full 20% deposit.
  • Must have an account with HFC (SL) Ltd.
  • Must provide proof of employment and income.
  • Must provide two satisfactory proofs of ID and address.
  • Must have good credit history and should qualify for a loan exceeding the price of the house.
  • Must be qualified to own property in Sierra Leone.
  • Proof of relationships is required for Joint application for husband and wife, parents and children, siblings.
Terms:
RESIDENT SIERRA LEONEANS NON-RESIDENT SIERRA LEONEANS
Maximum Loan USD $120,000 or its Leone equivalent USD $120,000 or its Leone equivalent
Minimum Down Payment 20% 30%
Maximum Term 20 years 15 years
Processing Fee 1.5% of proposed loan US$250 / GBP150
Facility Fee Nil 1% of proposed loan
Deposit against Statutory Fees (towards registration of legal documentation) - 3% of loan Amount 3% of loan Amount
Advantages:
  1. To facilitate the supply of houses

  2. To assist estate developers to build to predetermined purchasers and therefore reduce uncertainties.

  3. To reduce the financial cost by:
    • Since the construction is for predetermined market, the risk premium on the loan given to estate developers is low.
    • Estate developers under this product pass on the finance costs to borrowers even before construction is complete.

  4. Differences between estate developers and purchasers are settled easily as there is a third party HFC Mortgage and Savings (SL) Ltd also interested in the performance of the contract.

  5. Home purchases are assured to obtain value for the money because they have HFC Mortgage and Savings (SL) Ltd to lean on.

  6. Not all finance costs is capitalised and lump on the purchase price which would:
    • Reduce the price and push the affordability threshold lower thereby making it easy for borrowers to afford the houses.
    • With reduced house prices, the initial deposit would also be reduced. HFC Bank would in certain circumstances be able to reduce initial deposit.
    • Closing costs including stamp duty which are a percentage of the price of the property will also reduce.

  7. The price is fixed there by insulating purchasers from increase in prices.

  8. Estate developers have finance readily available to complete constructions and are under pressure to complete to avoid paying further interest and the effect of further increase in price.
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