Enhancing Mortgage Accessibility in Developing Economies: Insights from Bank Credit Professionals in Greater Kampala Metropolitan Area, Uganda

Access to mortgage financing is a significant challenge in developing countries, including Uganda, hindering the growth of the housing sector. This study explores the perceptions of bank credit professionals regarding clients’ awareness, attitudes, and challenges related to mortgage eligibility terms in the Greater Kampala Metropolitan Area. Employing a qualitative approach, in-depth Key Informant Interviews were conducted with six credit professionals from two major financial institutions. The findings reveal that over 75% of applicants fail to meet the stringent eligibility criteria, with key barriers identified as high interest rates averaging around 21%, substantial down payment requirements of 20% to 30%, and rigid collateral stipulations. Credit professionals suggested strategies to alleviate these challenges, including relaxing eligibility conditions, accepting alternative collateral, and encouraging self-financing through investment returns. The study highlights the urgent need for enhanced stakeholder collaboration to improve mortgage accessibility and affordability. Policy implications include reducing interest rates, revising eligibility criteria, and strict measures against corruption within financial institutions. Implementing these recommendations is vital for making mortgage financing more attainable for housing developers in the GKMA, thereby fostering a more inclusive housing market in Uganda.