Examining Awareness, Attitudes, and Challenges of Owner Developers Regarding Mortgage Financing Eligibility Terms in GKMA, Uganda

Abstract

This paper explored how owner-builders in GKMA, Uganda, perceive and access mortgage financing from commercial banks. We employed a descriptive study design including quantitative and qualitative data collection methods using questionnaires with semi-structured open-ended and close-ended questions about mortgage financing to collect data from 400 owner-builders Centenary Bank and House Finance Bank clients. Questionnaire information on basic requirements, awareness, attitudes and challenges was analysed using Likert Scale Mean Scores and correlation statistics using STATA 17. The paper found that owner-builders face high interest rates, cumbersome mortgage processes, poor mortgage product sensitisation, time-consuming phased disbursements, corrupt bank officials, and high initial contributions as significant challenges. The paper suggests policy recommendations to improve access to mortgage financing in GKMA, Uganda. This paper recommends that financial institutions provide more information, support, and flexibility to owner-builders who want to access and manage mortgage financing. The study further suggests that the government and the financial sector work together to improve financial inclusion, literacy, innovation, competition, regulation, and support for low-income households who want to access mortgage financing in Uganda