Here is a scenario that plays out in bank halls across Kenya every day: someone dreams of owning a home, but they are already paying off a car loan, a SACCO loan, maybe a personal loan — so they assume a mortgage is out of the question until every one of those is cleared. Years pass. Rent continues. The dream waits.

The assumption is wrong. Existing loans do not automatically disqualify you from a mortgage. What matters is a single, simple test that lenders use — and once you understand it, you can work out for yourself, right now, whether there is room for a home loan in your finances.

The One-Third Rule

The rule of thumb used in mortgage lending is this: not more than a third of your income should go toward loan repayments.

That means your existing loans are not the issue — the space they occupy is. If your current repayments plus the proposed mortgage repayment fit within one-third of your income, there is room. If they exceed it, there is not — no matter how good your intentions or how clean your record.

Caroline Wanjeri Kihara, KCB Group's Director of Mortgages, extends the same principle to housing costs generally: "Immediately more than a third of your income is going towards paying rent, you're killing yourself." Whether it is rent or loan repayments, a third is the line.

Do the Maths Yourself in Two Minutes

The beauty of the one-third rule is that it works both forwards and backwards:

•Forwards — what repayment can I afford? Take your monthly income and divide by three. That is the total headroom for all loan repayments, existing and new. Subtract what you already pay, and the remainder is what a mortgage repayment could look like.

•Backwards — what income does my target repayment need? Multiply your desired monthly repayment by three. During a KCB live session, a viewer asked about repaying KES 20,000 a month for a two-bedroom house; Wanjeri's quick maths: 20,000 times three means your income should be at least KES 60,000.

That second calculation is quietly empowering. Instead of asking "will they give me a loan?", you can ask "what income do I need to show?" — and plan toward it.

So You Have Existing Loans. What Are Your Options?

If the maths shows you have room, the path is straightforward — apply, and let the bank confirm the numbers. But even if the maths shows you are tight against the third, all is not lost:

• Clear the smaller loans first. A small outstanding loan eating part of your third can disproportionately shrink the mortgage you qualify for. Clearing it can unlock far more headroom than its size suggests.

• Grow the income side. The third is a ratio — increasing your verifiable income increases everything it allows. For business owners, this links directly to making income visible through your bank account.

• Right-size the house. The kind of home you buy is determined by your income level. Starting with a studio or one-bedroom within your third today beats waiting a decade for the dream house — and the equity you build becomes your stepping stone to the next one.

• Talk to the bank early. Where a borrower is stretched, advice is given so as align the numbers.

A Word of Caution: The Rule Protects You Too

It is tempting to see the one-third rule as a bureaucratic obstacle. It is actually a safety rail. A mortgage runs for years — up to 25 — and a repayment that consumes half your income leaves no margin for school fees, emergencies, or a slow business season. The borrowers who thrive with mortgages are those whose repayments sit comfortably within their means, not at the edge of them.

And remember what sits behind the rule: your credit record. The bank will pull your CRB report, so how you have handled your existing loans — paying consistently, communicating early when things get tight — is itself part of your qualification story.

The Bottom Line

Existing loans do not end your home ownership dream — arithmetic simply defines where it starts. Divide your income by three, subtract what you already repay, and you have a realistic picture of your mortgage room today. To test those numbers against real properties and the 8.9%* Pata Kwako offer, visit https://ke.kcbgroup.com/ or walk into any KCB branch and talk to a mortgage specialist.

KCB Bank. For People. For Better.

Frequently Asked Questions

Can I get a mortgage if I already have loans?

Yes. Existing loans do not disqualify you. What matters is whether your total loan repayments — existing plus the new mortgage — stay within one-third of your income.

What is the one-third rule for mortgages?

It is a rule of thumb that not more than a third of your income should go toward loan repayments. Lenders use it to determine how much additional borrowing your income can safely support.

How much mortgage can I get on my salary?

Divide your monthly income by three to find your maximum total loan repayment. Subtract existing loan repayments — what remains is the monthly mortgage repayment your income can support.

What income do I need for a KES 20,000 monthly mortgage repayment?

Working backwards using the one-third rule: multiply the repayment by three. A KES 20,000 monthly repayment requires an income of at least KES 60,000.

What can I do if my existing loans leave no room for a mortgage?

Options include clearing smaller loans first to free up headroom, growing your verifiable income, starting with a smaller property within your current third, or discussing with your relationship manager on how to manage your income.

*Terms and conditions apply.