Consumer knowledge, mortgage terms, attitude towards mortgage financing and performance mortgage providers.

Abstract

The purpose of the study was to examine the relationship between consumer knowledge, mortgage terms, attitudes to the mortgage financing to performance of the mortgage sector. The study was guided by the following objectives; to examine relationship between consumer knowledge, mortgage terms and attitude to mortgage financing to performance of the mortgage sector. The study was a cross sectional survey and stratified random sampling design was used to select a sample of 196 mortgage service providers within Kampala area. The data was collected using a self administered questionnaire to mortgage managers of the firms and banks. The data was analyzed using a statistical Package for Social Sciences (SPSS 11.0) software to generate descriptive / inferential statistics. It findings showed that there was a significant relationship between mortgage terms and attitude to mortgage financing. Although mortgage sector is an important part of construction industry growth in Uganda and has in the recent years gained more recognition with initiatives and strong commitment by real estate companies, financial institutions and the government towards mortgage sector activities in Uganda, measures on consumer knowledge, good mortgage terms, flexible re-payment period, have been taken to build capacity to enhance the performance of mortgage sector. However, there is need to strengthen the capacity of mortgage sector, trainings and corporate governance especially on loan application and payment, adopt a quicker and fast approach to mortgage service to enable customers’ access services, flexible terms and conditions while the study used a cross sectional research design which is usually a short term study and no detailed reviews were undertaken thus the conclusion of this study might have been affected, further study should be done to improve accessibility to mortgage services, brokerage services to make mortgage flexible.