When you embark on your homeownership journey with a KCB mortgage, there's more to consider than just the principal and interest payments. Two crucial aspects that play a vital role in protecting your investment and ensuring smooth management of your home loan are mortgage insurance and loan servicing. In this blog post, we'll demystify these concepts and explain how they contribute to a secure and hassle-free mortgage experience. But first, what is mortgage insurance and what options do we have for you?
Understanding Mortgage Insurance
Mortgage insurance is a safeguard that protects both you as a borrower and us as a lender. It provides financial security in case of unforeseen circumstances that might affect your ability to repay your loan. At KCB, we offer several types of mortgage insurance to ensure comprehensive protection:
- Mortgage Protection Insurance (MPI)
MPI is designed to pay off your outstanding loan balance in the event of your death. With coverage rates of 0.42% of the loan amount for one person or 0.63% for two persons, MPI provides peace of mind knowing that your family won't be burdened with mortgage debt if the unexpected occurs.
- House Owners Comprehensive Insurance (HOCI)
HOCI protects your property against damage from various risks such as fire, floods, and other natural disasters. With coverage of 1.25 per 1000 plus 0.05% of the insurance value, HOCI ensures that your home can be restored to its original condition in case of damage.
- Retrenchment Insurance
In today's uncertain job market, retrenchment insurance offers valuable protection. For just KES 1,500 per annum or KES 125 per month, this insurance covers your loan repayments for up to 9 months if you lose your job due to retrenchment.
- Collateral Replacement Indemnity (CRI)
CRI allows you to access higher loan-to-value ratios, making homeownership more accessible. With a coverage of 2.5% on excess of 105% financing, CRI can help you secure the home of your dreams with a smaller down payment.
These insurance products not only protect your investment but also provide peace of mind throughout your homeownership journey.
The Ins and Outs of Mortgage Servicing
Mortgage servicing is the administrative aspect of your loan, handling day-to-day management and customer service. At KCB, we pride ourselves on providing excellent mortgage servicing to ensure a smooth experience for our borrowers.
Key aspects of our mortgage servicing include:
- Collecting and Processing Payments: We offer multiple convenient payment options, including mobile banking, online transfers, and branch deposits. When we receive your payment, it's promptly applied to your account, keeping your loan in good standing.
- Managing Escrow Accounts: For many mortgages, we manage escrow accounts to handle property taxes and insurance payments. This service ensures these crucial expenses are paid on time, protecting your property and your credit rating.
- Providing Customer Service: Our dedicated team is always ready to assist you with any questions or concerns about your mortgage. Whether you need information about your loan terms, want to discuss payment options or require assistance with documentation, we are here to help.
- Handling Loan Modifications or Refinancing: Life circumstances change, and sometimes you may need to modify your loan terms or consider refinancing. Our mortgage servicing team can guide you through these processes, helping you find the best solution for your financial situation.
- Managing Defaulted Loans: While we hope it never happens, we have processes in place to assist borrowers who face difficulties making their payments. If you ever find yourself in this situation, please contact us immediately. We're committed to working with our borrowers to find solutions and avoid foreclosure whenever possible.
Our Top Tips for Effective Mortgage Management
To make the most of your mortgage, consider these tips:
- Stay informed about your mortgage terms and conditions. Keep all your loan documents in a safe place and review them periodically.
- Keep track of your payments and escrow account. Regularly review your mortgage statements to ensure everything is in order.
- Communicate promptly with us if you face financial difficulties. The earlier we know about any issues, the more options we have to help you.
- Regularly review your mortgage insurance coverage to ensure it still meets your needs as your life circumstances change.
At KCB, we're committed to providing comprehensive mortgage solutions and excellent servicing to help you achieve and maintain your homeownership dreams. Our mortgage insurance products offer robust protection for your investment, while our dedicated servicing team ensures your loan is managed efficiently and professionally.
And there you have it folks. That is all we have for you in this episode, but we will be back with more mortgage gems that you do not want to miss.
Ready to take the next step? Contact KCB Mortgage through email at KCBKenyamortgages@kcbgroup.com or call us through 0711 087 000/0732 187 000.
Until next time…
Over and Out,
Witty Banker.
