| dc.description.abstract | This study sought to investigate the factors leading to adoption of mortgage financing by commercial banks in Kenya. The objectives of the study included to investigate into factors that led to mortgage adoption in Kenya Commercial Bank, find out the financial factors that led to mortgage adoption in Kenya Commercial Bank, and ascertain the benefits of mortgage financing to Kenya Commercial Bank's development.
The study used a descriptive research design to achieve the set objectives.
The population of this study comprised of managers, credit officers, clerks and mortgage advisors from Commercial Banks headquarters based in Nairobi. purposive sampling was used in this study to select managers, credit managers, clerks and mortgage advisors from each of the selected commercial banks. Data was collected through self-administered semi-structured questionnaires. Descriptive statistics such as means, standard deviation and frequency distribution were used to analyze the data.
Content analysis was done for qualitative data. Statistical Package for Social Sciences (SPSS) was used to aid in analysis. Results were presented using pie charts, bar charts and graphs, percentages and frequency tables. Qualitative data was presented in prose. This- study found that market factors that influence commercial banks to adopting mortgage financing include; Market penetration, Cross selling potential, Competition from other banks, Relative political stability, and Economic reforms in Kenya. Adoption of mortgage financing is greatly influenced by high interest from mortgages.
The research found that high interest from mortgages influenced mortgage financing to a great extent with a mean of 3.85 and a standard deviation of 0.872. The other factors that influenced commercial banks to adopt mortgage financing include; Kenya's financial laws requiring banks to have less cash in reserve and Kenya's financial laws requiring banks to lower interest rates on treasury bonds. Mortgage financing was found to be beneficial to commercial banks.
Based on this study findings mortgage financing contributed to the development of the commercial banks. Other benefits of mortgage financing to commercial banks included; interest income, cross selling opportunities, 'market penetration and development, product development, customer loyalty to the bank due to the long term nature of mortgage finance, Higher customer satisfaction by offering several financial solutions alongside mortgage financing and the general growth of the bank. | en_US |
