In Uganda today, buying property with cash is becoming the exception—not the rule.

In Uganda today, buying property with cash is becoming the exception—not the rule.

With property prices rising and incomes stretched, more buyers are turning to mortgage products and alternative financing to own homes or grow portfolios.

But here’s the problem:<br />Most buyers walk into lender meetings blind—and end up with loans that cost them far more than they expected.

So, what should you ask your lender before signing anything?

These questions can save you years of financial stress:

1️ Are you a direct lender or a broker?<br />Direct lenders handle the loan themselves; brokers shop around for you.

2️ What types of loans do you offer?<br />Different loans = different terms, risks, and requirements.

3 What information do you need from me to determine the best loan?<br />Get clarity early to avoid surprises later.

4 How long does it take to get a pre-approval letter?<br />This matters when competing for properties.

5 What fees should I expect—both upfront and during the loan?<br />Hidden costs can turn a “good deal” into a trap.

6 Can you provide references from past clients?<br />A credible lender won’t hesitate to prove their track record.

7 What happens if rates change during the loan process?<br />Inflation and policy shifts can impact your payments.

8 What penalties apply for early repayment?<br />Many local lenders charge fees if you pay off early—know this upfront.

How to Choose the Right Lender (Best Practices):

• Compare rates and terms—on the same day for an apples-to-apples comparison.
• Ask what could change between the initial offer and final terms.
• Check reliability, not just interest rates. The cheapest option isn’t always the safest.
• Understand fixed vs. adjustable rates—and which works best for your risk tolerance.

Quick Guide to Lender Fees:

• APR (Annual Percentage Rate) – The true cost of borrowing, including fees.
• Interest Rate – The percentage charged on the loan (excludes fees).
• Points – One-time fees that can reduce interest; ask if it’s worth it for you.
• Other Fees – Underwriting, processing, and more—get a breakdown upfront.

Know Your Lender Types:

• Conventional lenders – Standard banks offering common mortgage products.
• Private money lenders – Private sources for non-owner-occupied investments (high risk, low regulation).
• Commercial lenders – For large income-producing properties like retail spaces or multi-family complexes.

💡 Choosing the right lender is as important as choosing the property itself. One wrong move can cost you years of income.

Ugandan buyers, what’s the toughest challenge you’ve faced when dealing with lenders?<br />Let’s discuss.