Mortgages in Uganda: Banks, Rates and Deposits
Updated 3 November 2026 · Land & Property editorial team
Ugandan shilling mortgages are costly. Banks charged an average 18.73% on shilling loans in February 2026, and one profile puts mortgage rates at 16% to 22%. On 14 October 2026 the Bank of Uganda raised its Central Bank Rate from 9.75% to 12%, so expect no relief soon. Banks lend up to 70% of value, so plan for a 30% deposit plus costs.
- Central Bank Rate
- 12%, raised from 9.75% on 14 October 2026
- Average shilling lending rate, Feb 2026
- 18.73% (Ministry of Finance report, via Eagle Online)
- Mortgage rate range quoted
- 16% to 22% over 25 years (housing finance profile, undated)
- Housing Finance Bank loan cap (diaspora FAQ)
- 70% of value; deductions up to 35% of gross salary
- Mortgage debt
- About 1% of GDP (allAfrica, Aug 2026)
What is the mortgage rate in Uganda?
There is no single published mortgage rate. Each bank prices the loan for the borrower, so use the market figures as a guide and ask for a written offer. As of November 2026, the evidence is:
- The Bank of Uganda raised its Central Bank Rate (CBR) by 225 basis points, from 9.75% to 12%, at a special meeting on 14 October 2026. The Monitor reports the decision, and Nairametrics says it is the highest level since December 2016. The rate had been 9.75% since October 2024.
- The weighted average shilling lending rate was 18.73% in February 2026, up from 18.33% in January, according to the Ministry of Finance report summarised by Eagle Online. Foreign currency loans averaged 7.09%.
- A housing finance profile says rates range from 16% to 22% over loan periods of up to 25 years. That profile is undated, so treat the range as a guide.
The October hike came after the shilling weakened and fuel prices rose. The Bank of Uganda expects inflation to climb, and said it would act further if needed. We found no bank that had published new mortgage rates after the hike, so do not assume the February figure still holds. See Mortgage Calculator for Uganda (UGX) to test different rates.
Which banks give mortgages in Uganda?
Housing Finance Bank (HFB) dominates. A 2024 report quotes the bank as holding 55% of the total mortgage portfolio. The same report names Stanbic Bank, Standard Chartered Bank, dfcu Bank, KCB Bank and Centenary Bank as other major players. A housing finance profile counts eight mortgage providers in all. Absa Uganda publishes diaspora home and land loans.
| Lender | What it publishes | Source |
|---|---|---|
| Housing Finance Bank | Up to 70% of value; 100% financing for first-time owners or earners below UGX 15 million; repayments up to 35% of gross pay; up to 20 years on home loans | HFB diaspora FAQ |
| Absa Uganda (diaspora) | Home loans up to UGX 2 billion or USD 500,000 for up to 20 years; land loans up to UGX 500 million for up to 10 years; UGX and USD | Absa diaspora page |
| Stanbic, Standard Chartered, dfcu, KCB, Centenary | Named as major mortgage players; we did not find published terms | Eagle Online, Sept 2024 |
We do not rank banks. Terms change and most pages are undated, so compare written offers on the same day. Our guide to Diaspora Mortgages in Uganda covers the products for people abroad, and Cheap Houses for Sale by Banks in Uganda: How It Works covers what happens when a borrower defaults.
How much deposit do I need for a house in Uganda?
Plan for 30% plus costs, unless you qualify for a special product. HFB's FAQ says it lends 70% of the value of the property you buy or build, which leaves a 30% deposit. It also says it gives 100% financing to first-time home owners or customers earning below UGX 15 million or equivalent. A housing finance profile says the loan-to-value (LTV) limit is 85%, which would mean a 15% deposit. The two figures differ by lender and product, so ask each bank which applies.
| Price of home | Deposit at 70% loan | Deposit at 85% loan |
|---|---|---|
| UGX 300,000,000 | UGX 90,000,000 | UGX 45,000,000 |
| UGX 765,000,000 (our median house) | UGX 229,500,000 | UGX 114,750,000 |
| UGX 1,300,000,000 (our median apartment) | UGX 390,000,000 | UGX 195,000,000 |
The medians come from Land & Property listings, Nov 2026: 14 houses and 19 apartments. They are asking prices, not sale prices. Add stamp duty, valuation, survey and legal costs on top; see cost of buying land in Uganda. The bank also asks for fees at application (application, valuation and survey, and CRB checks) and after approval (stamp duties, security perfection and arrangement fees), according to the HFB FAQ. Dentons reports that mortgage deeds carry nil stamp duty since the 2025 amendment, so ask the bank whether it still lists stamp duty for you.
What will the monthly repayment be?
The table shows the repayment on a UGX 210 million loan, which is 70% of a UGX 300 million home, over 20 years. The rates are the market figures above, not bank quotes. The last column is the gross monthly income needed if the bank caps total deductions at 35% of gross salary, as HFB's FAQ says it does.
| Interest rate | Monthly repayment | Gross income needed at a 35% cap |
|---|---|---|
| 16% | UGX 2,921,637 | UGX 8,347,536 |
| 18.73% | UGX 3,359,401 | UGX 9,598,288 |
| 22% | UGX 3,899,826 | UGX 11,142,360 |
Lengthening the term to 25 years only trims the payment by about 1.5%, because most of the cost is interest. Ugandan lenders offer terms of up to 25 years in some products, such as HFB's, according to a 2024 report. Check how bigger loans change the figures in How Big a Mortgage Can I Afford?.
How do I compare two mortgage offers?
Compare the full cost, not only the headline rate. Put these questions to each bank in writing:
- What is the rate, is it fixed or can the bank change it, and what is the total repayment over the term?
- What fees do I pay at application, and what after approval?
- What loan-to-value will you lend on this property, and what is the deposit?
- What tenor, and what is the repayment limit as a share of my income?
- Can I repay early? HFB says the minimum early payment is 10% of the outstanding principal, and a housing finance profile says early repayment fees were removed from 1 December 2023.
- For a build, how is money paid out? HFB pays in at least four instalments with a re-inspection each time, and gives up to 8 months of interest-only payments on request.
- Which property do you accept? HFB takes titled property only, with no squatters, graveyards, family land or communal land.
The paperwork is in mortgage requirements, and you should inspect the house before the valuation. If you need money for land rather than a home, read land loan Uganda bank and mortgage land title.
Why are so few Ugandans on a mortgage, and will the MRI Act change it?
An August 2026 commentary puts mortgage debt at about 1% of GDP, against above 80% in Denmark. A 2024 report quoted 1.2% of GDP. High rates, short-term bank funding, land titling problems and the high cost of formal housing are the barriers named in the commentary. Parliament passed the Mortgage Refinance Institutions Act on 4 September 2025, according to the Bank of Uganda. It lets licensed refinance institutions, with at least UGX 35 billion in paid-up capital, give banks long-term funds so that banks can lend for longer at better rates.
The Act does not by itself lower your rate. We found no report of a licensed refinance institution operating as of November 2026, so the rate you are offered still depends on the bank's own funding and the policy rate. Our Mortgage Refinance Institutions Act page explains what may change and when. If your title is clear and your income is steady, you can start by looking at plot listings, or ask our team on WhatsApp or by email to talk through your options.
Frequently asked questions
What is the mortgage rate in Uganda?
Banks set their own rates. The average shilling lending rate was 18.73% in February 2026, and one profile puts mortgage rates at 16% to 22%. The Central Bank Rate rose to 12% on 14 October 2026, so rates may rise. Ask each bank for a written offer.
How much deposit do I need for a house in Uganda?
Housing Finance Bank says it lends 70% of the property value, so the deposit is 30%, with 100% financing for first-time owners or those earning below UGX 15 million. A housing finance profile quotes a loan-to-value limit of 85%. Ask each bank which applies, and add legal and transfer costs.
Which bank is best for a mortgage in Uganda?
We do not rank banks. Housing Finance Bank held 55% of the mortgage portfolio in a 2024 report, with Stanbic, Standard Chartered, dfcu, KCB and Centenary named as other major lenders. Compare written offers from at least two banks on rate, fees, deposit and term.
How long can a mortgage run in Uganda?
Housing Finance Bank's diaspora FAQ gives up to 20 years for home loans and 10 years for commercial mortgages, and a 2024 report says some of its products run up to 25 years. Absa Uganda lists up to 20 years for diaspora home loans. Terms vary by product.
Does the central bank rate change my mortgage?
Indirectly. The Central Bank Rate guides what banks pay for funds and charge borrowers, but each bank sets its own lending rate and some loans have reviewable rates. The rise to 12% on 14 October 2026 makes cheaper loans less likely in the short term.
Can I get a mortgage on land without a house?
Absa Uganda lists a diaspora land loan of up to UGX 500 million for up to 10 years. Housing Finance Bank lists a land loan product, and says it accepts titled property only. Check the lender's page for current terms.
Sources
- BoU raises interest rate to 12% as Uganda shilling weakness stokes inflation (Oct 2026), Daily Monitor (accessed 2026-11)
- Bank of Uganda raises benchmark interest rate to 12% (14 Oct 2026), Nairametrics (accessed 2026-11)
- Uganda's shilling lending rates rise to 18.73% in February 2026 (23 Apr 2026), Eagle Online (accessed 2026-11)
- Uganda: housing finance profile, Centre for Affordable Housing Finance in Africa (accessed 2026-11)
- How Housing Finance Bank is revolutionizing Uganda's mortgage industry (4 Sep 2024), Eagle Online (accessed 2026-11)
- Diaspora FAQs (mortgage terms and document list), Housing Finance Bank (accessed 2026-11)
- Diaspora lending, Absa Bank Uganda (accessed 2026-11)
- Setting the record straight on the Mortgage Refinance Institutions Act, Daily Monitor (Bank of Uganda reply) (accessed 2026-11)
- How affordable mortgage financing is key to Uganda's tenfold economic growth agenda (27 Aug 2026), The Independent via allAfrica (accessed 2026-11)
- Global tax guide to doing business in Uganda (reflects the 2026 tax amendment Acts), Dentons (accessed 2026-11)