The Housing Finance System

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A. Primary Housing Finance Market

A.1 Industry Structure and Performance
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Number of firms originating and funding mortgage loans 1918
AMB
A.1.1
Types of originating lenders/market share:A.1.2
Universal/ commercial banks 73% of total100% of total
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A.1.2.1
Other depository institutions (savings and loans/mutual savings and credit institutions)  0% of total
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A.1.2.2
Non-depository financial institutions specialized in housing finance  0% of total
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A.1.2.3
General non-depository financial institutions  0% of total
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A.1.2.4
Others (e.g. insurance co, pension funds, labor tax funds)  0% of total
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A.1.2.5
Identify the 3 largest loan originating lenders BCI, BIM, StandartBank 
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A.1.3
Are there (quasi) public mortgage lenders: YesNo
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A.1.4
Universal/ commercial banks No 
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A.1.4.1
Other depository institutions (savings and loans/mutual savings and credit institutions) No 
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A.1.4.2
Non-depository financial institutions specialized in housing finance No 
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A.1.4.3
General non-depository financial institutions No 
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A.1.4.4
Others (e.g. insurance co, pension funds, labor tax funds) No 
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A.1.4.5
Typical lending spreads for mortgages  9.72%
 
A.1.5
Level of Non-Performing Mortgage Loans (90 days or more past due):A.1.6
Average 1997-2007 A.1.7
A.2 Size of Mortgage Finance Sector
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Total amount of home mortgage loans outstanding at the end of year in millions of USD:107.79 USD (millions)117.13 USD (millions)110 USD (millions)A.2.1
Total amount of home mortgage loans outstanding at the end of year as % of GDP (current) .93%1.01%
Banco de Moçambique, WEO
A.2.1.1
and as % of all credits outstanding2.97%3.06%2.95%
Banco de Moçambique, World Bank
A.2.1.2
A.3 Housing Finance Products
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Mortgage products as % of all mortgages (approx.) in local currency:A.3.1
Fixed rate for life of loan  100%
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A.3.1.1
Variable rate/indexed  0%
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A.3.1.2
Variable rate/discretionary  0%
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A.3.1.3
Other fully amortizing loans (e.g. Rollover)  0%
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A.3.1.4
Non-fully amoritizing loans (e.g. Price level adjusted/Interest only)   0%
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A.3.1.5
Loans based on foreign currency as % of all mortgage products  0%
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A.3.2
Most prevalent type of foreign currency mortgage used:A.3.3
Fixed rate for life of loan  100%
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A.3.3.1
Variable rate/indexed   0%
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A.3.3.2
Variable rate/discretionary  0%
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A.3.3.3
Other (describe in the Notes section)  0%
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A.3.3.4
Most frequent interest rates on fully amortizing:A.3.4
10 year fixed rate mortgage  0%
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A.3.4.1
most common indexed ARM/10 year term  0%
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A.3.4.2
discretionary ARM/10 year term  0%
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A.3.4.3
5 year roll-over/10 year term  0%
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A.3.4.4
foreign currency based 10 year FRM  0%
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A.3.4.5
Typical lender fees associated with mortgage origination: A.3.6
Fixed in amount   0 USD
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A.3.6.1
as % of loan amount  0%
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A.3.6.2
Typical third party fees associated with mortgage origination:A.3.7
Loan-to-Value (LTV) on first mortgage: A.3.8
Maximum LTV  80.00
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A.3.8.1
Typical LTV at origination  80.00
Banco de Mocambique
A.3.8.2
Maximum term over which pmt is calculated?   25 years
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A.3.9
Mortgage pmt-to-income ratio A.3.10
Maximum pmt-to-income ratio (HH income)  30%
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A.3.10.1
Typical pmt-to-income ratio (Individual income)  30%
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A.3.10.4
A.4 Lending and Servicing Process
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Does the mortgage industry use standard principles/guidelines for underwriting?  No
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A.4.1
Which institutions define underwriting rules? A.4.2
Are loan originations conducted by others than employees of lenders?  No
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A.4.3
% of appraisals done by employees of lenders  100%
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A.4.4
Do third party servicing institutions exist?   No
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A.4.5
A.5 Credit Risk Assessment
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Do credit bureaus exist?   Yes
Doing Business - Mozambique
A.5.2
Are there legal/regulatory constraints to gaining access to credit information?  No
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A.5.2.1
Is mortgage default insurance available?  No
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A.5.3
Are credit guarantee systems used?  YesNoA.5.4
B. Funding Sources for Mortgages and the Secondary Mortgage Market
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
What are the main funding sources for mortgages?B.1
Retail funding (deposits/other)  Primary
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B.1.1
Wholesale funding: loans from other banks or corporations  Non-applicable
 
B.1.2
Funding through mortgage bonds   Non-applicable
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B.1.3
Funding through securitization of mortgages  Non-applicable
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B.1.4
Other   Non-applicable
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B.1.5
C. Housing Microfinance
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Are non-collateralized housing micro-finance loans offered?  YesYes
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C.1
Types of lenders operating in the housing micro-finance (HMF) sector:C.2
Commercial banks YesYes
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C.2.1
Specialized non-depository MFIs  YesYes
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C.2.2
NGOs  No
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C.2.3
Others  No
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C.2.4
Typical lending spreads in HMF  40-50
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C.3
Level of NPLs (>90 days past due) in HMFC.4
Are non-collateralized but secured housing finance products offered (e.g. secured by pension or insurance savings)  Yes
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C.5
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Notes: All loans are fixed rate. Although 20 years is the maximum loan term, long term financing is not common. Average terms are closer to 5 years.
Notes: All loans are fixed rate. Although 20 years is the maximum loan term, long term financing is not common. Average terms are closer to 5 years.
Notes: All loans are fixed rate. Although 20 years is the maximum loan term, long term financing is not common. Average terms are closer to 5 years.
Notes: All loans are fixed rate. Although 20 years is the maximum loan term, long term financing is not common. Average terms are closer to 5 years.
Notes: All loans are fixed rate. Although 20 years is the maximum loan term, long term financing is not common. Average terms are closer to 5 years.
Notes: Although 25 years is the maximum loan term, long term financing is not common. Average terms are closer to 5 years.
Notes: Based on balance sheet
Notes: Both private and public bureaus were established in 2015
Notes: Estimation by Country Editor
Notes: More than value of loan (119%)
Notes: Secured by Life Insurance
Notes: Secured by Life Insurance
Notes: Secured by Life Insurance
Notes: Substandard housing is residential property that is not up to the local building or housing code. As there is no housing code, we used "bloco" as standard in urban areas
Notes: The Fund for Housing Promotion (FFH) has agreements with several banks to make mortgage loans accessible to public employees.
Notes: Urban minimum wages per month in USD. There is no longer a single minimum wage in Mozambique. We used min salary in non financial services
Notes: Urban minimum wages per month in USD. There is no longer a single minimum wage in Mozambique. We used min salary in non financial services
Notes: Urban minimum wages per month in USD. There is no longer a single minimum wage in Mozambique. We used min salary in non financial services
Notes: Urban minimum wages per month in USD. There is no longer a single minimum wage in Mozambique. We used min salary in non financial services
Notes: Urban minimum wages per month in USD. There is no longer a single minimum wage in Mozambique. We used min salary in non financial services
Notes: Urban minimum wages per month in USD. There is no longer a single minimum wage in Mozambique. We used min salary in non financial services
Notes: Urban minimum wages per month in USD. There is no longer a single minimum wage in Mozambique. We used min salary in non financial services