Toro offers a wide variety of financing solutions through our participating independent dealers. The issue of land delivery is among the factors that lead to situation where the amount of funds set aside to finance mortgage loans exceeds the amount actually borrowed for example from the beginning of mortgage services at Azania Bank always the fund has been exceeding the borrowings. Also this chapter has attempted to study the trend of mortgage financing within the case study areas which are CBA, Azania Bank and STANBIC Bank.
But due to the reasons of their absence the lenders meaning the banks which in this case are CBA, Azania Bank and STANBIC Bank have to undertake all activities that should have been undertaken by the mortgage brokers and thus adding to the costs of managing the loans. Dealers offer vehicles and financing in one location and may have extended hours, like evenings and weekends.
The analysis has shown that mortgage financing services that are provided by these institutions are somehow favorable on the side of the lenders since almost the number of borrowers increase year to year; the default rate is also low at an average of 10% for all three banks (Azania, CBA and STANBIC Bank). Mayugwa T et al, (2009) ‘Prospects of Financing Residential Property Development Under Mortgage Finance Law’ Unpublished Dissertation, LMV Department, Ardhi University Dar es salaam.
The interested students and other people who have interest in related study to this one can work on uncovered part of this study in examination of mortgage financing services provided by financial institutions especially on the side of the borrower. Panga V, (2010) ‘The Impact of Changes in Mortgage Laws Towards Financing Real Estate Investments in Tanzania’ Ardhi University, Dar-es-salaam. We offer a variety of financing packages including; simple interest loans, $1.00, 10%, 20% and FMV leases.
From the above study a conclusion is therefore drawn requiring the government to consider addressing the issues raised herein with a viewpoint of creating an enabling framework and conducting different workshops to sensitize people in both rural and urban regarding mortgage financing. The government as well as the local governments must be ahead in town and city planning prior to properties development to ensure that all plots have title deeds and people live in standard and quality housing accommodations as that is one of the aims of mortgage financing.