Housing And Housing Financial Institutions In The Context Of Ethiopians

Housing is an essential human need. The need for housing will therefore exist, as long as human beings exist in the world. It is in this contest that house financing plays a key role in providing the necessary financial assistance for construction, extension and modification of housing. Provision of basic housing facility has been one of the priorities of developing countries. International financing agencies such as the World Bank is providing all the facilities and assistance to the country for the purpose of housing development. Many factors have contributed to the growth of housing finance in Ethiopia. Budgetary support provided by the government for housing in the form of tax incentives, relatively higher pay packets for employees, new heightened competition among the HFCs, etc. are important in this regard. Housing finance companies consider such factors as the loan amount, the tenure, cost of loan etc. before deciding to extend housing finance assistance. Among the agencies that provide housing finance facility which are important since they contribute more than 80 per cent of the funding required for housing development in Ethiopia.