A. Primary Housing Finance Market
A.1 Industry Structure and Performance
| Variable | End of 2017 | End of 2016 | End of 2015 | Sources | Var ID |
|---|---|---|---|---|---|
| Number of firms originating and funding mortgage loans | 14 | 10 | Bank of Zambia Annual Report 2017 | A.1.1 | |
| Types of originating lenders/market share: | A.1.2 | ||||
| Universal/ commercial banks | 33.5% of total | 50% of total | Country Editor | A.1.2.1 | |
| Other depository institutions (savings and loans/mutual savings and credit institutions) | 14.29% of total | 1% of total | Zambia National Building Society and Pan African Building Society | A.1.2.2 | |
| Non-depository financial institutions specialized in housing finance | 14.29% of total | 0% of total | Bank of Zambia Annual Report 2017 | A.1.2.3 | |
| General non-depository financial institutions | 7.14% of total | 20% of total | Bank of Zambia Annual Report 2017 | A.1.2.4 | |
| Others (e.g. insurance co, pension funds, labor tax funds) | 0% of total | Editor | A.1.2.5 | ||
| Identify the 3 largest loan originating lenders | Zambia National Building Society | ZNBS, FBS, Stanbic Bank | Research | A.1.3 | |
| Are there (quasi) public mortgage lenders: | Yes | Yes | FINMARK Trust Scoping study- Zambia | A.1.4 | |
| Universal/ commercial banks | Yes | Country Editor | A.1.4.1 | ||
| Other depository institutions (savings and loans/mutual savings and credit institutions) | Yes | Yes | Research | A.1.4.2 | |
| Non-depository financial institutions specialized in housing finance | Yes | Country Editor | A.1.4.3 | ||
| General non-depository financial institutions | Yes | Country Editor | A.1.4.4 | ||
| Others (e.g. insurance co, pension funds, labor tax funds) | Yes | Country Editor | A.1.4.5 | ||
| Typical lending spreads for mortgages | 16% | Bank of Zambia | A.1.5 | ||
| Level of Non-Performing Mortgage Loans (90 days or more past due): | A.1.6 | ||||
| as a % of outstanding loan amount | 9% | Bank of Zambia | A.1.6.2 | ||
| Average 1997-2007 | A.1.7 | ||||
| Lowest decile of the income distribution served by the dominant mortgage lenders | 1 decile | Country Editor | A.1.8 | ||
A.2 Size of Mortgage Finance Sector
| Variable | End of 2017 | End of 2016 | End of 2015 | Sources | Var ID |
|---|---|---|---|---|---|
| Total amount of home mortgage loans outstanding at the end of year in millions of USD: | 827.26 USD (millions) | 785.96 USD (millions) | 264.76 USD (millions) | Bank of Zambia Credit Market Monitoring Report 2017 | A.2.1 |
| Total amount of home mortgage loans outstanding at the end of year as % of GDP (current) | 3.24% | 3.75% | 1.29% | Bank of Zambia Credit Market Monitoring Report 2017 | A.2.1.1 |
| and as % of all credits outstanding | 27.01% | 33.33% | 59.1% | Bank of Zambia Credit Market Monitoring Report 2017 | A.2.1.2 |
| Total # of home mortgage loans outstanding at the end of year | 8.73 thousand | 11.3 thousand | 2.42 thousand | Bank of Zambia Credit Market Monitoring Report 2017 | A.2.2 |
| Total amount of home mortgages made in calendar year in millions of USD | 336.87 USD (millions) | 276.36 USD (millions) | Bank of Zambia Credit Market Monitoring Report 2017 | A.2.3 | |
| and as % of GDP (current) | 1.32% | 1.32% | Bank of Zambia Credit Market Monitoring Report 2017 | A.2.3.1 | |
| and as % of all credits originated in calender year | 27.47% | Bank of Zambia Credit Market Monitoring Report 2017 | A.2.3.2 | ||
| Total # of home mortgage originations made in calendar year | 4.3 thousand | 2,000 thousand | Bank of Zambia Credit Market Monitoring Report 2016 | A.2.4 | |
| What % of total new mortgages is refinance? | 10% | Country Editor | A.2.5 |
A.3 Housing Finance Products
| Variable | End of 2017 | End of 2016 | End of 2015 | Sources | Var ID |
|---|---|---|---|---|---|
| Mortgage products as % of all mortgages (approx.) in local currency: | A.3.1 | ||||
| Fixed rate for life of loan | 0% | Editor | A.3.1.1 | ||
| Variable rate/indexed | 90% | Editor | A.3.1.2 | ||
| Variable rate/discretionary | 10% | Editor | A.3.1.3 | ||
| Other fully amortizing loans (e.g. Rollover) | 0% | Editor | A.3.1.4 | ||
| Non-fully amoritizing loans (e.g. Price level adjusted/Interest only) | 0% | Editor | A.3.1.5 | ||
| Loans based on foreign currency as % of all mortgage products | 10% | Editor | A.3.2 | ||
| Most prevalent type of foreign currency mortgage used: | A.3.3 | ||||
| Fixed rate for life of loan | 0% | Editor | A.3.3.1 | ||
| Variable rate/indexed | 90% | Editor | A.3.3.2 | ||
| Variable rate/discretionary | 10% | Editor | A.3.3.3 | ||
| Other (describe in the Notes section) | 0% | Editor | A.3.3.4 | ||
| Most frequent interest rates on fully amortizing: | A.3.4 | ||||
| 10 year fixed rate mortgage | 19% | Country Editor | A.3.4.1 | ||
| most common indexed ARM/10 year term | 17% | Country Editor | A.3.4.2 | ||
| discretionary ARM/10 year term | 19% | Country Editor | A.3.4.3 | ||
| 5 year roll-over/10 year term | 17% | Country Editor | A.3.4.4 | ||
| Typical lender fees associated with mortgage origination: | A.3.6 | ||||
| as % of loan amount | 5% | 7.5% | 2018 CAHF Yearbook | A.3.6.2 | |
| Typical third party fees associated with mortgage origination: | A.3.7 | ||||
| Appraisal fees | 1,080 USD | FinMark (2013) Housing Finance Sector Review | A.3.7.1 | ||
| Title related fees | 70 USD | Country Editor | A.3.7.2 | ||
| Legal fees | 720 USD | FinMark (2013) Housing Finance Sector Review | A.3.7.3 | ||
| Search fees | 50 USD | Country Editor | A.3.7.4 | ||
| Loan-to-Value (LTV) on first mortgage: | A.3.8 | ||||
| Maximum LTV | 75% | Country Editor | A.3.8.1 | ||
| Typical LTV at origination | 75% | Country Editor | A.3.8.2 | ||
| Maximum term over which pmt is calculated? | 20 years | 20 years | 2018 CAHF Yearbook | A.3.9 | |
| Mortgage pmt-to-income ratio | A.3.10 | ||||
| Maximum pmt-to-income ratio (HH income) | 40% | Bank of Zambia | A.3.10.1 | ||
| Maximum pmt-to-income ratio (Individual income) | 40% | Bank of Zambia | A.3.10.2 | ||
| Typical pmt-to-income ratio (HH income) | 30% | Country Editor | A.3.10.3 | ||
| Typical pmt-to-income ratio (Individual income) | 40% | Country Editor | A.3.10.4 | ||
A.4 Lending and Servicing Process
| Variable | End of 2017 | End of 2016 | End of 2015 | Sources | Var ID |
|---|---|---|---|---|---|
| Does the mortgage industry use standard principles/guidelines for underwriting? | Yes | Country Editor | A.4.1 | ||
| Which institutions define underwriting rules? | A.4.2 | ||||
| Central Bank/Ministry of Finance | Yes | Country Editor | A.4.2.1 | ||
| Secondary market facility | Yes | Country Editor | A.4.2.2 | ||
| Major Lender | Yes | Country Editor | A.4.2.3 | ||
| Other | Yes | Country Editor | A.4.2.4 | ||
| Are loan originations conducted by others than employees of lenders? | Yes | Country Editor | A.4.3 | ||
| % of Originations done by brokers | 0% | Editor | A.4.3.1 | ||
| % of Originations done on the internet | 0% | Editor | A.4.3.2 | ||
| Others (Specify in Notes) | 0% | Editor | A.4.3.3 | ||
| % of appraisals done by employees of lenders | 90% | 1% | Country Editor | A.4.4 | |
| Do third party servicing institutions exist? | Yes | Country Editor | A.4.5 | ||
| % of loans serviced by originators/lenders | 90% | Country Editor | A.4.6 | ||
A.5 Credit Risk Assessment
| Variable | End of 2017 | End of 2016 | End of 2015 | Sources | Var ID |
|---|---|---|---|---|---|
| Do credit bureaus exist? | Yes | Yes | Yes | 2018 CAHF Yearbook | A.5.2 |
| Are there legal/regulatory constraints to gaining access to credit information? | Yes | Country Editor | A.5.2.1 | ||
| What percentage of mortgage originations use credit scoring? | 100% | Country Editor | A.5.1 | ||
| Is mortgage default insurance available? | Yes | Country Editor | A.5.3 | ||
| Number of private mortgage insurers | 0 | Editor | A.5.3.3 | ||
| Are credit guarantee systems used? | Yes | Country Editor | A.5.4 | ||
| Is there public sponsored MI / guarantee? | Yes | Country Editor | A.5.5 |
B. Funding Sources for Mortgages and the Secondary Mortgage Market
| Variable | End of 2017 | End of 2016 | End of 2015 | Sources | Var ID |
|---|---|---|---|---|---|
| What are the main funding sources for mortgages? | B.1 | ||||
| Retail funding (deposits/other) | primary | primary | 2018 CAHF Yearbook | B.1.1 | |
| Wholesale funding: loans from other banks or corporations | secondary | secondary | 2018 CAHF Yearbook | B.1.2 | |
| Funding through mortgage bonds | Non-applicable | B.1.3 | |||
| Funding through securitization of mortgages | Non-applicable | B.1.4 | |||
| What % of Residential Mortgage Backed Securities is issued by centralized conduit or liquidity facility? | 1% | Country Editor | B.2 | ||
| Who are the investors in RMBS? | Mainly foreign RMBS used but Farmers House Plc REITS | Country Editor | B.3 | ||
| What is the proportion of RMBS in the overall private securities market? | Not available | Country Editor | B.4 | ||
C. Housing Microfinance
| Variable | End of 2017 | End of 2016 | End of 2015 | Sources | Var ID |
|---|---|---|---|---|---|
| Are non-collateralized housing micro-finance loans offered? | Yes | Yes | 2018 CAHF Yearbook | C.1 | |
| Types of lenders operating in the housing micro-finance (HMF) sector: | C.2 | ||||
| Commercial banks | Yes | Yes | 2018 CAHF Yearbook | C.2.1 | |
| Specialized non-depository MFIs | Yes | Yes | 2018 CAHF Yearbook | C.2.2 | |
| NGOs | Yes | Yes | 2018 CAHF Yearbook | C.2.3 | |
| Others | Yes | C.2.4 | |||
| None | No | Country Editor | C.2.5 | ||
| Typical lending spreads in HMF | 25 | Editor | C.3 | ||
| Level of NPLs (>90 days past due) in HMF | C.4 | ||||
| as a % of loans | 19.1% | 10% | Bank of Zambia Credit Market Monitoring Report 2017 | C.4.1 | |
| as a % of outstanding loan amount | 10% | Country Editor | C.4.2 | ||
| Are non-collateralized but secured housing finance products offered (e.g. secured by pension or insurance savings) | Yes | Country Editor | C.5 | ||
| Lowest income decile served with all non-collateralized housing lending products | 10 decile | FinMark | C.6 | ||