How does mortgage loan work in Ghana?

When you want a mortgage, we recommend starting with your bank. You may find it relatively easier to acquiring financing because of your financial relationship with the institution. In the event where you can’t get financing at your bank, these are options available to you in Ghana:

1. Ghana Home Loans (now First National Bank)
2. Stanbic Bank
3. CalMortgage (Cal Bank)
4. Fidelity Bank

Types of Mortgages in Ghana

1. Home Purchase: This is to help individuals or companies buy property for rental or their personal use.
2. Home Equity: This is for individuals or companies who already own property. It gives them the ability to release equity and improve their liquidity.
3. Home Completion: This is for those who need money to complete the construction of their property.
4. Home Improvement: This is for those who want to renovate, remodel or expand their property.

READ: List of Real Estate Houses With Their Prices And Locations in Ghana

Usual Mortgage Terms

1. Downpayment: Most institutions require that the borrower make a 15 to 20 percent down payment of the total cost and the institution will finance the remaining 80 to 85% percent.
2. Loan term: Usually mortgage loans are 15 years but some institutions may offer 20 years
3. Interest rate: The borrower can borrow in either Ghana Cedi or US dollar. The interest rate varies depending on the currency. If borrowing in Cedi the interest is between 30 to 36% and in USD 10 to 15%

Mortgage Requirements

1. Must be between 18 to 55 years
2. Have no history of bad debts
3. Be able to provide adequate security for the loan
4. Be able to pay the downpayment
5. Be financially capable of repaying the loan. It is ideal that the repayment amount is about 40% of your earnings.