| dc.description.abstract | This study examined the influence of bank financing packages on affordable housing of low and middle-income earners in the Greater Kampala Metropolitan Area, Uganda. The study had four specific objectives, namely; to investigate the influence of equity financing on affordable housing of low and middle-income earners in the GKMA, to investigate the impact of housing loans on affordable housing of low and middle-income earners in the GKMA, to examine the role of mortgage financing towards affordable housing of low and middle-income earners in the GKMA, and to examine the role of government policies towards affordable housing of low and middle-income earners in the GKMA. A cross-sectional research design using a convergent parallel mixed methods approach was used to answer the study questions. A sample size of 161 respondents was considered for the study, 132 respondents participated, giving a response rate of 82.2%. The study established that bank financing packages (equity financing, housing loans and mortgage financing) have a statistically significant relationship and significantly positively influence on affordable housing of low and middle-income earners in GKMA. It was also established that low and middle-income earners personal savings is not enough to fund housing requirements and it takes longer period of time to save enough funds for housing requirements and equity savings does not enable them have a quality housing facility. It was further found that the requirements for accessing a housing loans were beyond their reach and they can access the amount of housing loan they want and most low and middle income earners have failed to secure housing loans financing for affordable housing from their banks, partly due to inflexible housing loan terms, high interest rates, and lack of proof of regular income and the ability to repay the loan. Furthermore, low and middle-income earners viewed mortgage financing as costly because of the high interest rate charged and unfavourable terms of repayment and customers cannot afford decent housing because their incomes are enough to support construction mortgage requirements. It was also established that government policies in Uganda do not support affordable housing of low and middle-income earners in GKMA. The study recommends that bank structure should support long-term financing that is required for people with low savings, efforts to strengthen informal community based savings groups to enable enough saving to enable housing financing needs, moderation of the interest charge on housing loans to make them affordable to low-income and middle income earners. Additionally effort should also be made by banks a introduce long term mortgage financing with flexible redemption options and government provide favorable policies to enhance
Key words: Bank Financing Packages, affordable housing, low and middle income earners | en_US |
