How Tanzania can bring down high mortgage interest rates
Mortgage financing in the country is regulated by the Mortgage Financing Regulations. Supporting pieces of legislation include the Bank of Tanzania Act, 2006 and the Banking and Financial Institutions Act, 2006. PHOTO | FILE
Dar es Salaam. The government has been advised to reduce its involvement in the credit market by supporting a secondary mortgage market and fostering competition among lenders, which will, in turn, pave the way for better loan terms for borrowers.
Reports show that mortgage loans in Tanzania are particularly expensive due to a combination of high interest rates, limited access to long-term funding and stringent regulatory requirements.
