15 vs 30-year Mortgage in Kenya: Which is Right For You?

Are you worried about how you can be the new home/property owner in town today? Well, mortgage loans are a good way to help you achieve your property ownership dreams. You can access a 15-year or 30-year mortgage loan in most Kenyan banks.

Indeed, it’s fast and more convenient to own property through a mortgage than saving enough money to buy your desired property. Mortgages have helped millions of people to own homes and income properties in Kenya.

And the fascinating thing is that you can be the next property owner with the help of a 15-year or 30-year mortgage in Kenya.

Keep reading the blog to learn about these two types of mortgage repayment terms in Kenya.

What is a Mortgage Loan in Kenya?

A mortgage is a loan that funds property ownership. If you want to own a home, land,  or commercial property, you can take this loan to help you purchase it. Some banks in Kenya help you acquire land and build property on it, whether a home or commercial property. 

One thing you should know about mortgages is that the property you purchase is collateral against the loan. Once you skip multiple loan payments, the bank can repossess the property, and you stand to lose. Therefore, you should have a stable income to repay your mortgage loan on time if you don’t want to lose your property and money.

You can apply for a 15-year or a 30-year mortgage loan to finance your property ownership.

15 vs. 30-year Mortgage Loan: What’s the Difference?

15-year mortgages are a good option for people who can afford the higher monthly payments and who want to pay off their mortgage as quickly as possible. On the other hand, 30-year mortgages are a good option for people who want lower monthly payments and who are comfortable with a longer timeline to pay off their mortgage.

15-year mortgage loans have lower interest rates, and the repayment is short. On the other hand, a 30-year mortgage has higher interest due to the extended repayment period.

Similarities of 15-year and 30-year Mortgage Loans in Kenya

  • They both help one to own a home/property in Kenya.
  • Both loans can build your credit score if you make timely payments.
  • You build equity as you pay the loan. In addition, you can take another loan against the accrued property equity.

The Pros and Cons of a 15-Year and 30-year Mortgage Loan

There are pros and cons of both 15 and 30-year mortgages in Kenya. Before filling out the mortgage application form, make sure you study the loan repayment term you prefer.

Pros of a 15-year mortgage

-Shorter repayment term

-Low interests.

-You’ll pay your 15-year mortgage half the time you could have paid a 30-year loan.

-The overall payment is lower compared to that of a 30-year mortgage.

-You build your home equity faster.

Cons of a 15-year mortgage

-You will pay higher monthly installments.

-You may fail to save money due to a strained monthly budget.

-If anything happens to your main income source, you will struggle to pay off the loan.

-You should have a very high monthly income to manage the monthly payments of a 15-year loan.

Pros of a 30-year mortgage

-It has lower monthly repayments than the 15-year mortgage.

-You have the freedom to save money since your budget will not be too squeezed.

-You can invest in other ventures because you’ll have some spare cash.

-You can pay an extra installment per year if you wish, but it’s not compulsory.

Cons of a 30-year mortgage

-Very long repayment period.

-You pay higher interest for the entire loan.

-The interest rate is also higher since you will spend more time with the bank’s money 

Which Mortgage is Right for You: 15-year or 30-year?

There are many factors to consider when choosing the right mortgage for you. In Kenya, the two most popular options are 15-year and 30-year mortgages.

15-year mortgages offer several benefits, one being repaying the loan faster. They typically have lower interest rates than 30-year mortgages, so you’ll save money on interest over the life of the loan. They also have shorter terms, so you’ll build equity in your home more quickly.

30-year mortgages have their advantages. They tend to have lower monthly payments than 15-year mortgages, making them more affordable in the short term. They also offer more flexibility since you can choose to make extra payments and pay off the loan early without penalty.

Ultimately, the best mortgage for you depends on your unique financial situation. If you have a good flow of income for about the next 20 years, it’s good to go for the 15-year mortgage. But if your income level is little but more stable and long-term, you can consider a 30-year mortgage.

Consider the following:

-Income level

-Debts that you have

-Your current financial goals

-Ability to repay the loan on time. Are you more disciplined in managing your finances?


Both 15-year and 30-year mortgage loans help you get your dream property. However, ensure you can comfortably repay your loan over the agreed period. Remember that you can build equity as you repay your mortgage loan, which helps build your overall net worth.

Frequently Asked Questions

15-year vs. 30-year mortgage, which do I take?

The mortgage you take depends on your ability to repay the loan. The stability of your income flow determines your ability to repay a mortgage and the suitable loan term. If you take a 15-year mortgage with a low income, you’ll struggle to repay the loan since you still have other expenses.

Is a 15-year mortgage loan cheap than a 30-year?

Yes. The overall interest repayment of a 15-year loan is lower than that of a 30-year mortgage. This is because the bank charges interest half the time t would have charged for 30 years.

Can I take a 30-year mortgage and repay it in 15 years?

You can restructure the loan with our bank if you trust your income flow. That will help you save more money in interest you could have paid.

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