Mukiha.....you made that so clear man!!!!

Make money.....then you will enjoy all the fine things in life!!!

After you have read that article,I hope u understand,Kenya is not special. I can create a mortgage product with all those types of mortgages together with different interest rates in one product. The interest rate can also be broken down further to daily,montly,weekly,yearly or the full loan period.

Now Mukiha,I just want you to tell me a mortgage product in Kenya that plays no games but only offers one payment through the term of the loan. Remember that in all loan products,you can always increase you repayment. but can you do that in kenya without attracting a fee? Tell the truth Mukiha. How much did you pay as early payment penalties? I am actually beginning to doubt your story.

Why a traditional mortgage? You want to know that your payments are manageable even if fired,you can increase your payment rate,and you will never be at the mercy of your lender if he suddenly decides to increase rates especially if you miss a payment. Before you hate on Islamic banking,pay them a visit. So far,that is all I would consider in Kenya.

It is interesting that you fail to mention what the ramifications are to the borrower are when he pays too early,is late in payment etc. I am 100% sure that Kenyan banks load these in their products. So please Mukiha,don't lie to people about the best mortgage product in the world as if it was made in Kenya. There is nothing special about the Kenyan product or option A. Only that the bank makes more.

That is all I will say on this topic.

@nanfor:

Call me a liar all you want....but the truth is that I did not pay a single cent extra for making early payments!

You are right: if the borrower misses one payment on my kind of mortgage,there will be additional interest charged.....here is the demo:

In my case at the beginning of the second month,the balance was sh2,238,125. If I missed the second installment this what would have happened:

The bank would have calculated the 1.25% interest on sh2,238,125 = sh27,977.

This is interest added to the principle to give a new total balance of sh2,266,102

Thus at the beiging of the third month,the balance will actually be higher than the original amount borrowed!

The interest on the third month will now be sh28,326 instead of sh28,083 .... sh243 more.

To avoid this kind of thing from happening,one should always strive to pay a little bit extra.....I always advised people to take a smaller mortgage than what they can afford/qualify for...and then to pay the full ammount that they can afford (see my recommendation below)

But if you take a mortgage and you are unable to make the second payment,then you were not serious about it in the first place! You should terminate that contract immediately and go back to paying rent!!!

Finally,I must reiterate two points: banks don't GIVE loans,the LEND them,and the money must be paid back....with interest (even in sharia banks....they just call it different name!!!!!)