The Housing Finance System

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A. Primary Housing Finance Market

A.1 Industry Structure and Performance
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Number of firms originating and funding mortgage loans261919A.1.1
Types of originating lenders/market share:A.1.2
Identify the 3 largest loan originating lendersEquity Bank, Stanbic Bank and Azania BankEquity Bank, Azania Bank, Stanci Bank and Commercial Bank of Africa Azania Bank Limited, Stanbi Bank (T) Limited, Commercial Bank of Africa (T) LimitedA.1.3
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 2015End of 2014End of 2013SourcesVar ID
Total amount of home mortgage loans outstanding at the end of year in millions of USD:167.09 USD (millions)143.91 USD (millions)96.8 USD (millions)
Tanzania Mortgage Market Update December 2015
A.2.1
Total amount of home mortgage loans outstanding at the end of year as % of GDP (current).37%.3%.36%
Tanzania Mortgage Market Update December 2015
A.2.1.1
and as % of all credits outstanding2.34%1.54%1.18%
Bank of Tanzania and Tanzania Bankers Association
A.2.1.2
Total # of home mortgage loans outstanding at the end of year3.39 thousand3.6 thousand2.78 thousand
Tanzania Mortgage Market Update December 2015
A.2.2
Total amount of home mortgages made in calender year in millions of USDNot availableNot available29.8 USD (millions)
 
A.2.3
Total # of home mortgage originations made in calender yearNot availableNot available895 thousand
 
A.2.4
What % of total new mortgages is refinance?12%14%11%
Tanzania Mortgage Market Update December 2015
A.2.5
A.3 Housing Finance Products
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Mortgage products as % of all mortgages (approx.) in local currency:A.3.1
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
Typical third party fees associated with mortgage origination:A.3.7
Search fees18.5 USD Not availableNot availableA.3.7.4
Loan-to-Value (LTV) on first mortgage: A.3.8
Maximum LTV80  
The Banking and Financial Institutions Act
A.3.8.1
Typical LTV at originationNot availableNot available80
 
A.3.8.2
Maximum term over which pmt is calculated? 20 years20 years20 years
The Banking and Financial Institutions
A.3.9
Mortgage pmt-to-income ratio A.3.10
Maximum pmt-to-income ratio (HH income)40%40%40%
The Banking and Financial Institutions Act
A.3.10.1
Maximum pmt-to-income ratio (Individual income)40%40%40%
The Banking and Financial Institutions (Mortgage Finance Regulations)
A.3.10.2
A.4 Lending and Servicing Process
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Does the mortgage industry use standard principles/guidelines for underwriting?Yes  
The Banking and Financial Institutions Act
A.4.1
Which institutions define underwriting rules? A.4.2
Central Bank/Ministry of FinanceYes  
The Banking and Financial Institutions Act
A.4.2.1
A.5 Credit Risk Assessment
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Do credit bureaus exist? YesYes 
Doing Business Tanzania
A.5.2
Are there legal/regulatory constraints to gaining access to credit information?Yes  
The Bank of Tanzania (Credit Reference Bureau)
A.5.2.1
B. Funding Sources for Mortgages and the Secondary Mortgage Market
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
What are the main funding sources for mortgages?B.1
Retail funding (deposits/other)Not availableprimaryprimary
Country Editor
B.1.1
Wholesale funding: loans from other banks or corporationsNot availablesecondarysecondary
TMRC
B.1.2
Funding through mortgage bonds   Non-applicable
 
B.1.3
Funding through securitization of mortgages  Non-applicable
 
B.1.4
C. Housing Microfinance
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Are non-collateralized housing micro-finance loans offered? YesNo 
World Bank Housing Finance Project
C.1
Types of lenders operating in the housing micro-finance (HMF) sector:C.2
Commercial banksYes  
Country Editor
C.2.1
Level of NPLs (>90 days past due) in HMFC.4
back to top | Country Data:
Notes: Less than 1%.
Notes: Loans from institutions like TMRC and other International Corporations
Notes: The regulation prescribes the requirements with regards to obtaining access to credit information and use of the information
Notes: TMRC liquidity facility