Overview of Tanzania Mortgage Refinance Company Limited (TMRC)
TMRC is a private financial institution in Tanzania that supports banks in mortgage lending by refinancing their portfolios. It operates as a mortgage liquidity facility for long-term mortgage lending activities by Primary Mortgage Lenders. TMRC's model is based on successful liquidity facilities and has achieved considerable success in the market.
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2024 National Housing Forum A brief on TMRC June 2024 Lusaka, Zambia
1. TMRC Overview 2. Shareholders 3. Role of TMRC 4. TMRC Products 5. Funding Mechanism 6. TMRC Funding Sources 7. Risk Profile of TMRC 8. Achievements 9. Investment Opportunity
Tanzania Mortgage Refinance Company Limited (TMRC) is a private sector financial institution with a sole purpose of supporting banks to do mortgage lending by refinancing banks' mortgage portfolios. TMRC is a mortgage liquidity facility (MLF), designed to support long-term mortgage lending activities by Primary Mortgage Lenders (PML) TMRC s operation model was adopted from other successful liquidity facilities
Malaysia - Cagamas Berhad France - Caisse De Refinancement De Habitat (CRH) Indonesia - PT Sarana Multgriya Finansial (SMF) Egypt - Egyptian Mortgage Refinance Company (EMRC) West Africa Regional Mortgage Refinance Fund (CRRH UEMOA) Nigeria - Nigeria Mortgage Refinance Company (NMRC) Mongolia - Mongolian Mortgage Corporation (MMC) Armenia - Armenian Mortgage Corporation (AMC) Jordan - Jordan Mortgage Refinance Company (JMRC) Pakistan Pakistan Mortgage Refinance Company (PMRC) Kenya - Kenya Mortgage Refinance Company (KMRC)
Percentage of Shareholding S/N Name of Shareholder Nationality Number of shares 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 1 CRDB Bank Plc Azania Bank Limited Shelter Afrique Internationa Finance Cooperation National Microfinance Bank Plc TIB Development Bank Limited National Bank of Commerce Limited Exim Bank (Tanzania) Limited National Housing Corporation DCB Commercial Bank Plc BancABC Tanzania Limited Bank of Africa (Tanzania) Limited First Housing Finance Co. Ltd ABSA Bank Tanzania Ltd Peoples Bank of Zanzibar Limited I&M Bank (T) Limited NIC Bank (Tanzania) Limited Mwanga Hakika Bank Ltd Mkombozi Commercial Bank Plc Total Tanzania Tanzania Kenya USA Tanzania Tanzania Tanzania Tanzania Tanzania Tanzania Tanzania Tanzania Tanzania Tanzania Tanzania Tanzania Tanzania Tanzania Tanzania 3,000,000.00 2,500,000.00 2,332,500.00 2,120,530.21 1,800,000.00 1,500,000.00 1,250,000.00 1,200,000.00 1,200,000.00 1,100,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 625,000.00 625,000.00 500,000.00 308,261.41 308,261.00 24,369,552.62 12.31% 10.26% 9.57% 8.70% 7.39% 6.16% 5.13% 4.92% 4.92% 4.51% 4.10% 4.10% 4.10% 4.10% 2.56% 2.56% 2.05% 1.26% 1.26% 100.00%
Provision of secure, long-term funding at competitive rates to mortgage lenders to enable them to continue lending to their clients Assist in the standardization of mortgage practice in Tanzania through specialized training to mortgage lenders on the origination of mortgages Contribute to the growth of Tanzanian capital markets through the issuance of TMRC bonds to source funds for long term lending to commercial banks
TMRC is offering two types of products Mortgage Refinancing Loans: These are loans issued to commercial banks that already have mortgage products on their books Mortgage Pre-financing Loans These are loans to banks that do not have a mortgage loan portfolio on their books but intend to borrow funds exclusively for originating new mortgages.
Loan agreement Collateral Cash (Finance) Mortgage Lenders TMRC Cash Securities Mortgage loans Collateral Investors Borrower (BOT, Bond Holders, DFIs etc.) Dwelling
dd Corporate Bond Market Bank of Tanzania TMRC Primary Mortgage Lenders
TMRC engages in secured lending only and does NOT do any unsecured lending. TMRC only lend to Banks and Financial institution regulated by the Central Bank of Tanzania. TMRC s acceptable collateral includes mortgage portfolio (with performing loans only), Government Securities and Fixed Deposits.
Increase in mortgage tenor from 5-7 years to 15-25 years Currently, there are thirty-one (31) banks and financial institutions engaging in mortgage lending from Three (3) banks in 2010. Mortgage outstanding debt in the market reported to BOT increased from TZS 76.72 Billion (Eqv. US$ 48.3 million) in 2011 to TZS 614.57 Billion (Eqv. US$ 238.2 million) in 2024. Mortgage loans interest rates range reduced from 20% - 24% and now to 13% - 18%.
7000 6000 5000 4000 3000 2000 1000 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1-24
35 30 25 20 15 10 5 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1-24
700.00 600.00 500.00 400.00 300.00 200.00 100.00 0.00 Q4 14 Q4 15 Q4 16 Q4 17 Q4 18 Q4 19 Q4 20 Q4 21 Q4 22 Q4 23 Q1 24 Mortgage Debt Outstanding TZS billions
TMRC ordinary shares TMRC is an open company, so interested housing stakeholders are invited to join as shareholders TMRC Public issued bond These are TMRC Bonds listed at Dar es Salaam Stoke Exchange TMRC Private placement arrangement These are Private arrangements between investors and TMRC Line of Credit To lend money to TMRC on concessional or non-concessional terms of lines of credit
