In order to encourage low income earners, the government of Rwanda has approved Rwf290 billion for Affordable Housing covering a long term period.
This report was disclosed by the Minister of Finance and Economic Planning, Claver Gatete, who said that the decision was made by the government to improve the lives of many Rwandans who cannot afford to build houses and yet cannot acquire long-term mortgage loans at low interest rate.
“We realised that land is expensive and most of the materials are imported, which increases the cost of rent. Interest rates from banks are also high and paid in a shorter period,” Gatete said.
This project is to start by September this year, to cover a mortgage payment of 25 years or more instead of the current 10 to 20 years.