The Bank of Uganda (BOU) is set to introduce stricter regulations for mortgage refinancing institutions following the passage of the Mortgage Refinance Institutions Bill, 2025 into law. This new legislation empowers BOU to oversee and approve applications related to Islamic mortgage refinance operations within the country.
According to the bill, any individual or entity looking to conduct mortgage refinance business in Uganda must first obtain a license from BOU. This measure aims to ensure compliance with financial regulations and standards, fostering stability and transparency in the housing finance sector.
The introduction of this law marks an important step in modernizing Uganda’s financial framework, particularly in addressing the growing demand for accessible and secure mortgage refinance options. By regulating these institutions, BOU hopes to create a more reliable environment for both borrowers and lenders.
Additionally, the bill highlights BOU’s commitment to exploring innovative financing models, such as Islamic mortgages, which align with specific religious and ethical principles. This inclusion reflects Uganda’s diverse financial needs and the government’s efforts to cater to all segments of society.
With these new regulations in place, Ugandans can expect a more organized and accountable mortgage refinancing sector, potentially leading to better terms and conditions for home buyers and investors alike.