In 2019, The International Growth Center (IGC) conducted a study on the housing needs of Kigali alone, and it was estimated that there is a need for more than 310,000 new houses by 2032 with majority of those houses being in the affordable housing category.
To fill the current housing gap, the Government of Rwanda (GoR) initiated the Rwanda Housing Finance Project to allow Rwandans to access affordable mortgages for a long tenor.
The World Bank has funded this project to the tune of US$150 million through BRD to support Rwanda’s affordable housing agenda and provide affordable mortgage loans.
The prospective beneficiaries of this project are divided into two categories.
The first includes first time homeowners who earn less than Rwf1,200,000 per month and are looking to purchase a home with a value not exceeding Rwf40,000,000. This category will benefit from a mortgage loan at an interest rate not exceeding 11%.
The second includes first time homeowners who earn between Rwf1,200,000-1,500,000 per month and are looking to purchase a home with a value ranging from Rwf40,000,000 to 60,000,000. This category will benefit from a mortgage loan at an interest rate not exceeding 13%.
The project fund is accessible to borrowers through participating financial institution (PFIs). As of today, six financial institutions namely: Bank of Kigali (BK), ZIGAMA CSS, Bank of Africa (BoA), KCB Rwanda, NCBA Bank and BPR have access to the funds. However, BRD is actively pursuing partnerships with other banks to ensure that the facility is convenient for all.
The RHFP has a digital platform (iwanjye.brd.rw) that will link applicants, financial institutions, and affordable housing developers. Once an application is submitted, the system will verify the conformity of the applicant against eligibility criteria set by the Government of Rwanda to benefit from an affordable housing scheme.
Thereafter, eligible applicants will be notified to proceed and choose their future home in any location of their choice but compliant with the location master plan and consequent mortgage loan processing.
BRD has called upon potential beneficiaries wishing to benefit from the affordable housing scheme to register at iwanjye.brd.rw/
Individuals or real estate developers intending to build or sell affordable housing units can contact BRD at rhfp@brd.rw for further information and collaboration.
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