1How was born the CFC born?
Crédit Foncier was born in a context where Cameroon was experiencing remarkable economic growth leading to a strong urbanization fueled among other things by the massive return of Cameroonian executives from abroad, the massive rural exodus from Rural populations seeking employment in large urban centers. The housing stock was then found to be insufficient both qualitatively and quantitatively. In response to this worrying situation, the Government restructured the construction SIC and created the MAETUR in charge of the development of the plots of land to be built and then the CFC on 13 May 1997 in order to provide financial assistance to Any project to promote social housing.
2What is the difference between CFC and other conventional banks?
Of course, the basis of CFC activity is the same as that of any financial institution. But the difference is that the CFC is the only financial institution that provides long-term loans based on both formal and informal income at flexible and low interest rates.
3Is it favoritism to be eligible for a CFC loan?
We do not think, because our conditions of eligibility and the procedures of instruction are clearly defined. When a borrower meets these rules, the credit is granted.
4What is the maximum duration of loans?
7 years for the acquisition of land, 25 years for other financing with a deferred period of 18 months.
5What does the word deferred mean ?
Yes, the deferral is the period between the implementation of your loan and the actual start of repayment. It is used to carry out the project before the start of loan collection / repayment.
6I would like to build on a piece of land left to me by my late father, but I still have no land title. Can I still have a loan?
No, because the first guarantee of any transaction for a construction project at Crédit Foncier is land title.
7I am in the process of acquiring land, but I would like to begin the process of obtaining a loan for the construction of my future home. What should i do ?
In the absence of land titles, it will be necessary to produce a certificate of promise of sale of land signed before-notary, pending the continuation of the land procedure.
8I own a land with land title and I would like to build houses to rent. Can Crédit Foncier help me do it?
You can apply for the Land Rental Loan. It is reserved just for any natural person or legal entity wishing to construct an immovable that he intends to rent to a third person to have income at the end of the month.
9I am not an employee, yet I would like to benefit from a loan of this nature. How can i proceed ?
The Credit Foncier does not speak in terms of wages but in terms of income. The loan is based on the income of the person requesting it. Repayments of the Land rental loan are made on the basis of rents from the house or building.
10Meaning that at the end of the month in the place that I perceive the rent, it is the Credit Foncier who perceives it?
No, this is done on the basis of a quota agreed according to the amount of the due date. Generally, it is a quota of 75% of the rent for the Credit Foncier, but the reflection currently conducted should result in 50% for each part.
11What if I die before the end of the deadlines?
The building and the tenants will not die with you hopefully.
12With the universities expansion , I thought to exploit my ground constructing one or several university cities to house the students. Is it possible ?
Yes, but in this case, you solicit the Rental Land Cities University. The difference with rental property is at the level of the interest rate which is 5% instead of 7% for university city, slightly different because it requires a personal contribution of 10% subject to the profitability of the project.
13Can a person holding an undivided land title apply for a loan?
Yes, provided that he or she obtains the formal agreement, (before notary) of all the other undivided co-owners. This authorization (given by the other co-owners) must be precise and indicate all the powers (hypothecate, invest on the site if necessary)
14Can the value of land already acquired by the promoter be taken into consideration as a personal contribution?
It depends on the type of loan. – In the case of a loan for strictly personal or family use (traditional land or land saving housing), it is possible provided that the value of the land is included in the overall cost of the project. – If it is a loan Land rental or promotion, this is not allowed. The total availability (unencumbered, constructible …) of the land being in these cases a criterion of eligibility.
15Is it possible to obtain financing if we have already started the building work?
Is the value of the investments in progress (Building site) taken into account? Funding can be obtained at all stages of a construction site, including finishing work. The value of the work carried out (what you have called investments in progress) is taken into account in the analysis. In this case, it will be necessary to present 03 estimates: – A global estimate of the project; – An estimate of the work already carried out; – An estimate of the work still to be carried out.
16What is the minimum credit rate (MTC) in effect at CFC at this time? What factors would change this rate?
The minimum credit rate is set by the Central Bank (BEAC) and varies according to market fluctuations. Currently (August 2015) it is 2.45%. To get the hang of it, please see the central bank’s website:https://www.beac.int
17In addition to the instruction fees paid in Canada, will there be any additional costs to be paid once the file has been received by the Land Credit? If yes, which ones? Instruction fees of 0.1%? When should these fees be paid?
The costs incurred in Canada are essentially for pre-study and referral to Yaounde (they could replace the airfare and living expenses that the client should have incurred to deposit his file at Yaoundé). They also replace the instruction fee of the file that all CFC clients bear and are payable at the filing of the file at any CFC agency.
18What are the processing times when the complete file is submitted?
Deadlines depend on the type of funding. They range from two weeks (buyer loan) to 90 days for the rental. But this is an average, each file being specific.
19Will an official piece of identification issued in Canada be acceptable? Is it essential to have a national identity card Cameroon?
I would like to point out that if it is an identity document (card, passport or other official document recognized) issued by the Cameroonian consular services in Canada, there is no problem. But if it is an identity document from the state of Canada or the US, issued for a citizen of that country, it is not, at the current state of the regulation, accepted.
20What are the conditions for the creation of an ICS in Cameroon?
This is an aspect of the Ministry of Housing and Urban Development. Consult with the competent services of the ministry or a notary http://www.minhdu.gov.cm
21Are mortgages open to enable early repayment of the loan before maturity? In the documents we have it is mentioned a penalty of six months interest at least in the case of an early repayment? Is it the only cost to incur?
Of course. Early repayment is allowed, subject of course to the provisions relating to the fight against money laundering and financial crime. This early repayment may be partial or total. The payment of six months of interest concerns the case of total reimbursement and constitutes the only expenses generated by this operation. It should be noted, however, that if the customer had outstanding payments at the time of the transaction, interest on late payment will be calculated and claimed from the customer. If it is a partial prepayment, the customer will have to make a payment at least equal to 10% of the Remaining Capital Due from the loan.
22What are the approaches and addresses to establish the certificates of urbanism, property and accessibility? Could we have a guide on that?
The steps are to be taken with the Urban Communities or the territorially competent municipalities with regard to the authorization to construct (building permit), and certificates of urbanism and accessibility. As regards the issue of certificates of ownership, it is the Land Conservation Services which are competent.
23Is it possible to have funding for the construction of a school or a mall?
Currently it is not possible