According to TMRC half year report, the mortgage repayment periods have also been extended from seven to 20 years.
The TMRC which received a US$ 60m International Development Association loan earlier this year said it hopes to further develop the country’s infant mortgage market.
“The additional IDA funds will put TMRC on a stronger path to sustainability by raising its own funding through other means, such as local bond issuance,” the report stated.
Average loan size has also increased from 69m/- in 2014 to 75m/- this year but loan size across mortgage lenders varied greatly, reflecting different strategies and customer bases.
“Akiba, EFC and DCB who target lower income customers had much lower average mortgage loan sizes than the likes of Stanbic Bank whose average loan size was 271m/-.
The TMRC which is under Bank of Tanzania said another initiative set up under the Housing Microfinance Project (HFP) is the Housing Microfinance Fund (HMFF) which is geared to providing long-term loans for lower income earners who currently lack access to housing finance.
“The fund has officially begun its operations this year and on 31 July 2015, the first disbursement of 1bn/- was made under the fund to DCB Commercial Bank Plc with the total credit line to the bank being 3bn/-,” the report added.
This has marked the first step towards significant progress of the microfinance sector.
DCB is looking to lend the funds to low income earners to renovate or construct new houses, it added.
TMRC currently has 12 borrowing members (9 of which are offering mortgage loans), and has already extended loans worth 41.1bn/- to seven of its member banks.
As at 30th June 2015, refinancing and pre-financing mortgages advanced by TMRC to its member banking institutions was equivalent to 12 percent of the total outstanding mortgage debt, the TMRC report noted.
TMRC‘s contribution to the growth of the housing market is expected to significantly increase over the coming years as the new financing will build on the achievements of the ongoing 2010 Housing Finance Project (HFP) which has overseen the establishment of the TMRC.
World Bank loan of USD 30 million in 2010 established TMRC to help develop the country’s mortgage lending.