The Housing Finance System

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A. Primary Housing Finance Market

A.1 Industry Structure and Performance
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Number of firms originating and funding mortgage loans10  
CAHF 2015
A.1.1
Types of originating lenders/market share:A.1.2
Universal/ commercial banks72% of total72% of total72% of total
Bank of Botswana
A.1.2.1
Other depository institutions (savings and loans/mutual savings and credit institutions)28% of total28% of total28% of total
Bank of Botswana
A.1.2.2
Are there (quasi) public mortgage lenders:yesyesyesA.1.4
Level of Non-Performing Mortgage Loans (90 days or more past due):A.1.6
Average 1997-2007 A.1.7
A.2 Size of Mortgage Finance Sector
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Total amount of home mortgage loans outstanding at the end of year in millions of USD:1,012.13 USD (millions)1,115.47 USD (millions)1,037.85 USD (millions)
Bank of Botswana
A.2.1
Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)7.87%7.02%7.01%
Bank of Botswana
A.2.1.1
and as % of all credits outstanding34.38%36.41%34.4%
Bank of Botswana
A.2.1.2
A.3 Housing Finance Products
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Mortgage products as % of all mortgages (approx.) in local currency:A.3.1
Most prevalent type of foreign currency mortgage used:A.3.3
Most frequent interest rates on fully amortizing:A.3.4
Typical lender fees associated with mortgage origination: A.3.6
Typical third party fees associated with mortgage origination:A.3.7
Loan-to-Value (LTV) on first mortgage: A.3.8
Maximum LTV10090 
CAHF Yearbook 2015
A.3.8.1
Typical LTV at origination909090A.3.8.2
Maximum term over which pmt is calculated? 30 years30 years30 yearsA.3.9
Mortgage pmt-to-income ratio A.3.10
Typical pmt-to-income ratio (HH income)  40%A.3.10.3
A.4 Lending and Servicing Process
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Does the mortgage industry use standard principles/guidelines for underwriting?yesyesyesA.4.1
Which institutions define underwriting rules? A.4.2
Major LenderyesyesyesA.4.2.3
A.5 Credit Risk Assessment
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Do credit bureaus exist? yesyes  A.5.2
B. Funding Sources for Mortgages and the Secondary Mortgage Market
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
What are the main funding sources for mortgages?B.1
Retail funding (deposits/other)primaryprimary primary
Bank of Botswana
B.1.1
Other   secondary
Finmark
B.1.5
C. Housing Microfinance
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Are non-collateralized housing micro-finance loans offered? yes  
CAHF Yearbook 2015
C.1
Types of lenders operating in the housing micro-finance (HMF) sector:C.2
Othersyes  
CAHF Yearbook 2015
C.2.4
Level of NPLs (>90 days past due) in HMFC.4
Are non-collateralized but secured housing finance products offered (e.g. secured by pension or insurance savings)yes  
Select Africa
C.5
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Notes: 2010 = 100
Notes: 2010 = 100
Notes: 40-45% for commercial banks, lower for BBS and other quasi-governmental organizations (25%)
Notes: BBS uses hybrid retail and government funding
Notes: CAHF 2015 page 37: Seven commercial banks and three statutory banks
Notes: Select Africa is making headway into Botswana microfinance industry for home improvements and home related construction Select Africa receives funding through direct payroll deposits and through external funding eg. the Soros Economic Development Fund