Tanzania Mortgage Refinance Company (TMRC) CEO Oscar Mgaya on Monday outlined key strategies to strengthen mortgage lending and expand housing finance access at the Mortgage Market Global Summit in El Nido, Palawan.

Mgaya emphasized the need for regulatory incentives, housing microfinance refinancing, and robust risk management to foster a more inclusive mortgage market. While banks dominate Tanzania’s mortgage sector, their diverse lending portfolios — covering SME and car loans — often limit mortgage expansion.

He advocated for allowing pension benefits as a substitute for down payments to make homeownership more affordable.

“Incentivizing banks to focus more on mortgage lending is crucial. Special treatments, like using pension benefits for down payments, enhance affordability and reduce borrowers’ financial burdens,” Mgaya said.

To improve financial inclusion, TMRC plans to introduce housing microfinance refinancing. This initiative will channel funds through microfinance institutions — mirroring TMRC’s existing refinancing model for banks — to serve low-income and informal sector borrowers.

“A significant portion of our population lacks formal income. By refinancing microfinance institutions, we can extend housing finance to underserved segments,” Mgaya explained.

On risk management, he highlighted TMRC’s strict recourse policy, requiring mortgage lenders to replace non-performing loans with performing ones. This approach has helped TMRC secure oversubscribed funding rounds at competitive rates.

“Our risk profile remains very low, which reassures investors and allows us to raise funds affordably,” Mgaya said.

He also confirmed that while banks retain servicing responsibilities, TMRC ensures oversight through regular audits and reports.

TMRC aims to expand Tanzania’s mortgage market and improve housing accessibility for more citizens.