Question 1

What is First Housing Finance?

Accepted Answer

First Housing Finance (Tanzania) Limited is Tanzania's first dedicated housing finance company, specializing in long-term mortgage solutions for Tanzanian citizens. Established as a pioneer in the housing finance market, the institution focuses exclusively on providing affordable housing financing with competitive interest rates and extended loan tenors. The company offers specialized mortgage products for home purchase, home improvement, home extension, and home equity financing.

First Housing Finance is sponsored by Bank M Tanzania Plc in partnership with the International Finance Corporation (IFC), Housing Development Finance Corporation Limited (HDFC) of India, the Karimjee family, and Sanjay Suchak.

Question 2

When was First Housing Finance founded?

Accepted Answer

First Housing Finance (Tanzania) Limited was incorporated under Tanzanian law on July 13, 2016. The company received its banking license from the Bank of Tanzania on July 18, 2017, under the provisions of the Banking and Financial Institutions Act, 2006 (Cap. 342 R.E. 2002).

The company officially commenced operations in October 2017, marking a significant milestone as Tanzania's first institution dedicated exclusively to housing finance. At inception, the company's paid-up capital stood at TZS 21.80 billion, demonstrating strong financial backing from its sponsors.

Question 3

Where is First Housing Finance headquartered?

Accepted Answer

First Housing Finance is headquartered at 19 Barack Obama Drive (formerly Obama Drive), Dar es Salaam, Tanzania. The Dar es Salaam location serves as the company's main office and operational center, positioned in Tanzania's largest city and commercial capital.

Question 4

Where does First Housing Finance operate?

Accepted Answer

First Housing Finance currently operates from its Dar es Salaam headquarters with plans for national expansion. At launch, the company announced intentions to open branches across Tanzania in a short timeframe to extend affordable mortgage financing to citizens throughout the country.

The institution's vision includes building a comprehensive presence across Tanzania's major urban centers and regional areas to fulfill its mission of providing accessible housing solutions nationwide.

Question 5

What services does First Housing Finance offer?

Accepted Answer

First Housing Finance offers specialized mortgage products including:

Home Purchase Loans: Financing for buying residential properties with competitive interest rates and extended repayment terms.

Home Improvement Loans: Financing for renovating and upgrading existing homes.

Home Extension Loans: Loans for expanding existing residential properties to meet growing family needs.

Home Equity Loans: Financing secured against the equity in existing homes, a product novel to the Tanzanian market at launch.

The company distinguishes itself through key features including mortgage tenors up to 20 years (making monthly payments more affordable), a Prime Lending Rate (PLR) set at 15% for prime customers (among the lowest in Tanzania), and a guaranteed 24-hour turnaround time for processing mortgage applications.

These service features are specifically designed to make homeownership accessible and manageable for Tanzanian families.

Question 6

What makes First Housing Finance unique?

Accepted Answer

First Housing Finance stands out as Tanzania's first and only dedicated housing finance company, bringing specialized expertise and focus to the mortgage market. The institution's commitment to offering the lowest mortgage interest rates in Tanzania, with a PLR of 15%, makes homeownership significantly more affordable.

The company's 20-year loan tenor represents the longest mortgage term available in Tanzania, substantially reducing monthly payment burdens and improving cash flow management for families. The guaranteed 24-hour application processing turnaround demonstrates exceptional customer focus and operational efficiency.

First Housing Finance benefits from the expertise and support of internationally renowned partners including the International Finance Corporation (World Bank Group) and Housing Development Finance Corporation Limited (HDFC), Asia's largest housing finance company, bringing global best practices to Tanzania's housing finance sector.

Question 7

What type of financial institution is First Housing Finance?

Accepted Answer

First Housing Finance (Tanzania) Limited is a licensed housing finance company regulated by the Bank of Tanzania under the Banking and Financial Institutions Act, 2006. As a specialized financial institution, it focuses exclusively on mortgage lending and housing finance solutions rather than offering general commercial banking services.

Housing finance companies occupy a distinct regulatory category in Tanzania, differentiated from commercial banks by their specialized mandate to provide long-term housing credit. This specialization allows First Housing Finance to develop deep expertise in mortgage products, property valuation, and housing market dynamics.

The company operates with strong institutional backing from Bank M Tanzania Plc (a commercial bank), the IFC (representing international development finance), HDFC (providing technical housing finance expertise), and local business leaders, creating a unique public-private partnership model for expanding housing finance access in Tanzania.

First Housing Finance

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About First Housing Finance in Tanzania