HOFINET | Housing Finance Information Network

The Housing Finance System

PDF featuring variable definitions

A. Primary Housing Finance Market

Variable	End of 2020	Sources	Var ID
Number of firms originating and funding mortgage loans	4	Association of Building Societies and Monetary Policy January 2011	A.1.1
Types of originating lenders/market share:			A.1.2
Universal/ commercial banks	0% of total	Author's Research	A.1.2.1
Other depository institutions (savings and loans/mutual savings and credit institutions)	95% of total	Author's Research	A.1.2.2
Non-depository financial institutions specialized in housing finance	0% of total	Author's Research	A.1.2.3
General non-depository financial institutions	0% of total	Author's Research	A.1.2.4
Others (e.g. insurance co, pension funds, labor tax funds)	5% of total	Author's Research	A.1.2.5
Identify the 3 largest loan originating lenders	Non-applicable	CAHF Yearbook 2016	A.1.3
Are there (quasi) public mortgage lenders:	Yes	Research	A.1.4
Universal/ commercial banks	Yes	Reserve Bank of Zimbabwe	A.1.4.1
Other depository institutions (savings and loans/mutual savings and credit institutions)	Yes	FBC Building Society	A.1.4.2
Non-depository financial institutions specialized in housing finance	No	Research	A.1.4.3
General non-depository financial institutions	No	Research	A.1.4.4
Others (e.g. insurance co, pension funds, labor tax funds)	Yes	Author's Research	A.1.4.5
Level of Non-Performing Mortgage Loans (90 days or more past due):			A.1.6
as a % of # of loans	4.24%	Reserve Bank of Zimbabwe	A.1.6.1
Average 1997-2007			A.1.7

Variable	End of 2020	Sources	Var ID
Total amount of home mortgage loans outstanding at the end of year in millions of USD:	375.03 USD (millions)	Central Bank of Zimbabwe	A.2.1
Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)	1.82%	WEO and Central Bank of Zimbabwe	A.2.1.1
and as % of all credits outstanding	9.74%	Central Bank of Zimbabwe	A.2.1.2
Total amount of home mortgages made in calendar year in millions of USD	146 USD (millions)	Author's Research	A.2.3
and as % of GDP (current)	2%	Author's Research, own calculation	A.2.3.1
Total # of home mortgage originations made in calendar year	3 thousand	Author's research	A.2.4

Variable	End of 2020	Sources	Var ID
Mortgage products as % of all mortgages (approx.) in local currency:			A.3.1
Fixed rate for life of loan	0%	Author's Research	A.3.1.1
Variable rate/indexed	100%	Author's Research	A.3.1.2
Variable rate/discretionary	0%	Author's Research	A.3.1.3
Other fully amortizing loans (e.g. Rollover)	0%	Author's Research	A.3.1.4
Non-fully amoritizing loans (e.g. Price level adjusted/Interest only)	0%	Author's Research	A.3.1.5
Loans based on foreign currency as % of all mortgage products	Non-applicable		A.3.2
Most prevalent type of foreign currency mortgage used:			A.3.3
Most frequent interest rates on fully amortizing:			A.3.4
Typical lender fees associated with mortgage origination:			A.3.6
Fixed in amount	25 USD		A.3.6.1
Typical third party fees associated with mortgage origination:			A.3.7
Appraisal fees	2 USD	Author's Research	A.3.7.1
Title related fees	Not available	Author's Research	A.3.7.2
Legal fees	Not available	Author's Research	A.3.7.3
Search fees	10 USD	Author's Research	A.3.7.4
Loan-to-Value (LTV) on first mortgage:			A.3.8
Maximum LTV	90%	CBZ	A.3.8.1
Typical LTV at origination	85%	CBZ	A.3.8.2
Maximum term over which pmt is calculated?	25 years	Association of Building Societies	A.3.9
Mortgage pmt-to-income ratio			A.3.10
Maximum pmt-to-income ratio (Individual income)	25%	CBZ	A.3.10.2
Typical pmt-to-income ratio (Individual income)	25%	CBZ	A.3.10.4

Variable	End of 2020	Sources	Var ID
Does the mortgage industry use standard principles/guidelines for underwriting?	Yes	Building Society Act	A.4.1
Which institutions define underwriting rules?			A.4.2
Central Bank/Ministry of Finance	Yes	Research	A.4.2.1
Secondary market facility	No	Author's Research	A.4.2.2
Major Lender	No	Author's Research	A.4.2.3
Other	Yes	Author's Research	A.4.2.4
Do third party servicing institutions exist?	No	Author's Research	A.4.5
% of loans serviced by originators/lenders	100%	Author's Research	A.4.6

Variable	End of 2020	Sources	Var ID
Do credit bureaus exist?	Yes	Financial Clearing Bureau	A.5.2
Are there legal/regulatory constraints to gaining access to credit information?	Yes	Author's Research	A.5.2.1
What percentage of mortgage originations use credit scoring?	100%	Author's Research	A.5.1
Is mortgage default insurance available?	Yes	Housing Finance Mechanisms in Zimbabwe	A.5.3
When did it begin operating?	Since the beginning of the building societies	Housing Finance Mechanisms in Zimbabwe	A.5.3.1
What is the typical MI product?	Mortgage Protection Policy (MPP)	Housing Finance Mechanisms in Zimbabwe	A.5.3.2
Are credit guarantee systems used?	No	Author's Research	A.5.4
Is there public sponsored MI / guarantee?	No	Author's Research	A.5.5
What % of the market does public MI / guarantee serve?	Non-applicable	Author's Research	A.5.6
What share of total annual mortgage production is insured/guaranteed?	100%	CBZ	A.5.7

Variable	End of 2020	Sources	Var ID
What are the main funding sources for mortgages?			B.1
Retail funding (deposits/other)	primary	CBZ	B.1.1
Wholesale funding: loans from other banks or corporations	secondary	CBZ	B.1.2
Funding through mortgage bonds	Non-applicable		B.1.3
Funding through securitization of mortgages	Non-applicable		B.1.4

Variable	End of 2020	Sources	Var ID
Are non-collateralized housing micro-finance loans offered?	Yes	ZAMFI	C.1
Types of lenders operating in the housing micro-finance (HMF) sector:			C.2
Commercial banks	Yes	Author's Research	C.2.1
Specialized non-depository MFIs	No	Author's Research	C.2.2
NGOs	Yes	Author's Research	C.2.3
Others	Yes	Author's Research	C.2.4
None	No	Author's Research	C.2.5
Level of NPLs (>90 days past due) in HMF			C.4
as a % of loans	Not available		C.4.1
Are non-collateralized but secured housing finance products offered (e.g. secured by pension or insurance savings)	No	Author's Research	C.5