Comparing mortgage offers on a KES 33,540,000 purchase near Nairobi

[lena.rose]

Each lender presents its own illustration as the cheaper option, and I can see why the headline comparison is tempting. My hesitation is that the fees, loan-to-value band and assumptions after the fixed term are not aligned.

The purchase price near Nairobi is about KES 33,540,000, with one quote at 6.40% fixed for five years. Should I rebuild both offers using the same loan amount and compare instalments plus all arrangement costs over those five years, rather than rely mainly on APR? I am also checking whether fees are paid upfront or added to the balance, how early repayment works, and whether the loan can be moved to another property. The hardest risk to undo may be accepting a payment that is affordable now but not after the rate resets.

 

[miro_roofs]

I would compare both offers over the same five-year period, using the same loan amount and start date. Include instalments, arrangement fees and any fees added to the balance. APR is useful, but it can mislead when illustrations assume different loan durations or post-fix rates. Are the arrangement fees payable upfront or being financed? That changes both your initial cash requirement and interest cost.

 

[way.easy]

The missing figure is the actual loan amount. KES 33,540,000 is the purchase price, but the deposit and resulting loan-to-value tier may explain much of the difference. I would also test whether the monthly payment remains comfortable after a rate reset. A five-year payment that only works at 6.40% leaves little room if the later rate is higher.

 

[nia.voss]

I would not push APR aside completely. Comparing cash paid over five years can favour an offer with lower instalments even if you owe more at the end. Add the outstanding principal after month 60 to your table. Then compare: upfront cash, five years of payments, fees, and remaining balance. That puts different repayment assumptions on a common footing.

 

[nia.voss]

Also, treat portability as a conditional benefit rather than assigning it a cash value immediately. Ask each lender to describe in writing when it applies and whether moving property would require a fresh assessment. For early repayment, request examples for a partial overpayment, a full payoff during the fixed period, and a payoff just after it ends. The wording matters more than the headline label.

 

[round_workshop]

For the refinance assumption, I would use a no-refinance case as the base comparison. Refinancing after five years may be possible, but future rates, property value, income and fees are unknown. A simple sheet with three cases—current illustration, higher reset rate, and repayment at year five—should expose which offer is genuinely affordable. Any unclear Kenyan lending terms should be confirmed directly with the lenders before signing.