ASSESSING BARRIERS TO HOMEOWNERSHIP THROUGH MORTGAGE FINANCING AMONG BANK ACCOUNT HOLDERS IN RESIDENTIAL AREAS OF LUSAKA CENTRAL CONSTITUENCY, ZAMBIA

Abstract

This study investigates the key barriers influencing access to mortgage financing among Zambian bank account holders, with particular focus on demographic, financial, institutional, and informational factors. Using a structured questionnaire administered to 147 respondents from residential areas in Lusaka Central Constituency in Lusaka City, the study applied a Probit regression model to assess the likelihood of home ownership as a function of these variables. Results reveal that age, marital status, and income significantly increase the probability of owning a home, highlighting the role of life stage and financial capacity in mortgage accessibility. Financial factors such as affordability of down payments and presence of outstanding debts also influence home ownership outcomes, while institutional challenges, particularly procedural complexity, act as significant deterrents. Most notably, the analysis shows that informational barriers, including lack of knowledge about mortgage products and procedural steps, significantly reduce the likelihood of mortgage uptake. The findings support the critical role of targeted financial education and simplified processes in enhancing mortgage access. Policy recommendations call for streamlined mortgage procedures and nationwide financial literacy campaigns to address structural and knowledge-based barriers to home ownership in Zambia.