Buying a House With a Mortgage: Step by Step

What are the steps to get a mortgage?

Banks differ in detail, but the order is the same. The steps below come from Housing Finance Bank's FAQ for home loans and Standard Chartered Bank Uganda's published mortgage facility terms. Housing Finance Bank's FAQ is an older edition, so check each point against the bank's current tariff guide before you rely on it.

1. Screen before you commit. Housing Finance Bank's FAQ says to negotiate a price with the seller, get a copy of the title and photos of the property, and have an initial discussion with a bank official to check you qualify before you commit funds to the vendor.
2. Apply with documents and fees. The FAQ lists the application form, employment contract, employer recommendation letter for salaried staff, 12 months of bank statements, two payslips, passport, copy of the title, approved building plan, spousal consent, credit reference report and, for purchases, the sale agreement or offer letter and the vendor's identification and spousal consent.
3. Valuation. Standard Chartered says its Letter of Intent is an approval in principle, and that on your acceptance it triggers a valuation request to your selected valuer.
4. Letter of offer. If the bank approves, it issues a letter of offer, which you accept in the way the letter sets out.
5. Meet the conditions. Standard Chartered's terms say you must provide the security documents in the form the bank requires, satisfy its insurance requirements, pay the costs of its service providers such as lawyers, and open or keep a nominated account.
6. Sign and register the mortgage. The bank takes a first legal mortgage over the property and the mortgage is registered on the title.
7. Draw down. Funds are released after the conditions are met. You pay your own contribution to the seller, or into your account, and provide proof of payment.
8. Transfer. The title moves into your name, subject to the bank's mortgage.

Before step 1, read legal checks before buying a house and use the house inspection checklist, because the bank will not fix a bad house or a bad title for you.

How long does approval take?

No published source we could open gives a standard approval time, so we do not quote one. What the documents show is where the time goes: the valuation, which starts after your Letter of Intent; the legal review of the title and the sale documents; and your own gathering of 12 months of statements, spousal consents and a credit reference report. A missing document on either side stops the process, so collect yours early.

The practical rule is to ask the bank for its expected timeline in writing before you pay a deposit, and to put a "subject to finance" condition into the sale agreement with a long enough completion date. For construction loans, Housing Finance Bank's older FAQ describes a grace period of eight months during which only interest on disbursed amounts is paid, and Standard Chartered's terms say a request for construction funds should be made at least fifteen banking days before you need them. Both are for building, not for buying a finished house. Our unfinished house guide covers loans for part-built houses.

How much will repayments be?

Neither bank publishes a single mortgage rate in the documents we read. The Central Bank Rate was 9.75% in March 2026, held since October 2024, and Bank of Uganda data reported by Eagle Online put the weighted average shilling lending rate at 18.73% in February 2026. A bank's mortgage rate is set in its letter of offer. Standard Chartered's terms say it may vary the interest rate after changes in the Bank of Uganda's base lending rate and will give 30 days' notice of a change. So a mortgage rate can move after you sign.

Housing Finance Bank's older FAQ says it lends up to 80% of the funds needed and caps the monthly repayment at 35% of gross income. Both points include any other loans you have. A 2024 article says the bank offers terms up to 25 years, the FAQ says 20, so ask which applies. Below is an illustration using 18.73% as a stand-in for a shilling rate. It is our arithmetic on a standard repayment loan, not a quote from any bank.

The longer term saves little at this rate. Spouse income, rental income and other business income can be counted if you can document them, according to the FAQ. See mortgages in Uganda for lenders and rate context.

How is the property valued, and what is a deposit?

The bank chooses or approves the valuer and bases its loan on the valuation. Housing Finance Bank's FAQ says it will fund up to 80% of the funds required, so you provide at least 20% from your own money, and it lets you pay your contribution into your account or directly to the vendor with proof. A valuation that comes in below the price reduces the loan, and you make up the gap in cash. The house valuation guide explains why bank value is often below market value.

The older FAQ's valuation fees were UGX 400,000 for properties valued up to UGX 500M, UGX 800,000 from UGX 500M to UGX 1B, and 0.1% of the value above UGX 1B, charged on application and non-refundable. Because the bank also needs a clean title and approved plan, the legal checks must be done before the valuation fee is wasted.

What legal work, insurance and fees should I expect?

These are the cash costs in Housing Finance Bank's older FAQ, which also says fees cannot be deducted from the loan. Confirm current amounts in the bank's tariff guide. The example column is our arithmetic for a UGX 500M purchase with an 80% loan of UGX 400M.

Property insurance is extra: the FAQ gives 0.15% of the insurance value, paid each January, and says mortgage protection or life insurance is optional. Standard Chartered's terms say you must meet the bank's and insurer's requirements and pay premiums unless the bank agrees to finance them. The stamp duty rates match the Ministry of Lands, Housing and Urban Development's guidance for transfers (1.5%) and mortgage deeds (0.5%). Add your 20% deposit of UGX 100M, so the cash needed on top of the loan is roughly UGX 118M in this example.

Spousal consent is part of the legal work. The Land Act, Chapter 236, section 39, requires a spouse's prior consent to mortgage family land, and the bank's list asks for spousal consent copies from you and from the vendor.

Can I do this from abroad?

Yes, in some banks, with extra formality. Housing Finance Bank's older FAQ gives two routes for customers who hold accounts with it. Under the first, you come to Uganda to complete the forms and then appoint an attorney to sign the loan and mortgage documents. Under the second, you complete the forms abroad, have them witnessed by a notary public and courier them with the supporting documents, and you may still appoint an attorney, also witnessed by a notary. If no attorney is appointed you must sign the documents in person after approval.

A power of attorney gives someone authority over your money and your title, so choose the person with care and limit what it covers. The bank can handle the legal charge, but you still need your own advocate to check the seller and the title. For diaspora buyers see the page on buying your first home in Uganda, and to research the property, book an escorted site visit. Before you sign, read how to buy land in Uganda for land-title basics and where to buy a house in Kampala to pick an area.

What happens after I take the keys?

You repay monthly under the terms of the offer letter. Housing Finance Bank's FAQ says that when a loan is fully paid the bank releases the title with a release of mortgage document, and that it may not hand them to third parties unless you authorised that in person at one of its offices earlier. It also allows early or partial payment, with a nominal charge. The minimum early payment it states is 10% of the outstanding principal.

Before you move in, walk the house with the developer's or seller's list using the handover snag list, and check the apartment against apartment or house in Kampala if you are still deciding the type. To see current houses and prices, browse house listings.

Frequently asked questions

Related guides

• Legal Checks Before Buying a House
• House Inspection Checklist Before You Buy
• Buying Your First Home in Uganda: Step by Step
• Handover Snag List for New Homes
• Mortgages in Uganda: Banks, Rates and Deposits
• How to Value a House or Apartment in Uganda