Home Loans

Local Loans

For Ethiopians who reside in the country, obtaining a mortgage is a bit more of a complicated process (fingers crossed it changes soon).

It is quite common for most banks to ask for collateral from any customers desiring to obtain a loan to purchase property.

This is because employment is not guaranteed, and with average wages being quite low in comparison to property prices, it makes it difficult for banks to trust customers to pay back their loans.

However, good news is that new initiatives are currently underway to address this situation and improve housing affordability.

For those able to successfully obtain a loan, the repayment period is generally a bit shorter, ranging from 5-10 years, at an interest rate of ~14%.

Live Ethio currently works with a few banks very closely to obtain the best rates for our customers, so feel free to contact us for more information.

Diaspora Loans

For Ethiopians who now reside overseas or who have a foreign passport and live in Ethiopia, banks offer several loan options for potential customers. This depends on the salary of the person, their assets and other associated factors.

Generally, local banks require the diaspora to deposit (at a minimum) 20-30% of the home value in the following foreign currencies – USD, EUR, GBP.

Repayments (can be ETB depending on discussions) are then made over a period of 10-20 years at a negotiated interest rate with the bank of their choice.

Live Ethio currently works with a few banks very closely to obtain the best rates for our customers, so feel free to contact us for more information.