| dc.description.abstract | In Uganda, stringent mortgage eligibility terms impede access to housing finance services, deterring many prospective house developers from obtaining loans. Within a positivist research paradigm, this study investigates the dynamics of mortgage financing for house developers in the Greater Kampala Metropolitan Area (GKMA), Uganda. The background of the study highlights the increasing demand for affordable housing and the barriers to mortgage access, which include stringent eligibility criteria and high interest rates. The study employed a mixed-methods approach, integrating quantitative survey data with qualitative insights from interviews with house developers and bank credit professionals. This research used systematic sampling to administer 400 questionnaires to house developers affiliated with the Housing Finance Bank and Centenary Bank and to conduct six key informant interviews with bank professionals. The researcher utilized library and archival sources to review existing literature and historical data relevant to mortgage financing, providing a comprehensive understanding of the subject.
The study used descriptive statistics and logistic regression models to analyse factors influencing house developers’ likelihood of acquiring mortgages and to explore supply-side actors’ perspectives on mortgage financing. The logistic regression models revealed the significant impact of house developers’ awareness, attitudes, and challenges on their access to long-term housing loans, with statistically significant model results (chi-square values of 66.506, 84.287, and 73.317, respectively; p-values of 0.000). In conclusion, the house developers' awareness model indicated that the 21-day mortgage period, bribing officials, and principal reduction significantly affect mortgage acquisition. The attitudes model demonstrated that perceptions of available financing sources, ease of accessing mortgage financing, and the complexity of the process significantly impact mortgage acquisition likelihood. The house developer challenges model highlighted that paying mortgage processing fees of 2% and providing proof of a verifiable income source are significant challenges affecting the odds of obtaining a mortgage.
Recommendations focus on improving mortgage accessibility in Uganda through lower interest rates, better loan terms, and tackling corruption. The study advocates for collaboration between government and regulators to enhance mortgage access and proposes policy and practical interventions for policymakers, financial institutions, and house developers. Key recommendations include streamlining mortgage processing, subsidizing fees, increasing awareness of mortgage benefits, and combating bribery to improve efficiency and transparency. The research integrates findings from logistic regression models and library sources, offering insights into mortgage acquisition factors and informing stakeholders on enhancing mortgage financing systems in GKMA, Uganda. | en_US |
