HOW TO OWN A HOME WITH MORTGAGE, IN GHANA.

Joel Kwame Owusu Ansere

HOW TO OWN A HOME WITH MORTGAGE, IN GHANA.

While buying a house in Ghana could be challenging due to lack of cash, it could also be easy and flexible due to the various mortgages and home loans available to everyone. For instance buying a house in some of the big cities in Ghana: Accra, Kumasi and Takoradi, is very expensive and you need a lump sum of money to own house in these cities mentioned above.

But, as some banks in Ghana are providing mortgages with various payment plans and other home loans, the issue of finance being an obstacle to your home ownership and/or acquisition in Ghana, is gradually becoming obsolete and now one can buy a house in Ghana with little cash or without a lump sum.

Various known banks in Ghana provide mortgages for homebuyers and owners with a payment plan of, up to 20 years depending on the particular bank. Some of these banks include: Carl Bank, Republic Bank, Absa and the First National Bank. Other known property developers like Apolonia

TYPES OF MORTGAGES IN GHANA

1. Home Purchase Mortgage

This mortgage type is to enable individuals acquire their dream home without any lump sum, mostly a down payment at a percentage of the overall value of the property is made. Here some banks finance up to 90 percent of your home purchase with a repayment period between 5-20 years. Interest rates of home purchase mortgage may vary from bank to bank. Different banks have different terms and conditions to be able to access their home purchase mortgage. Age is a factor when it comes to mortgage due to the repayment period. A number of banks only consider individuals between 21 years and 60 years, and should be a salaried worker.

This type of mortgage could be the solution to your home purchase needs, since it has made buying a house in Ghana very easy and affordable. One can buy a house in Ghana and pay monthly, therefore the move from a vagrant to a home owner is always achievable.

2.Home Equity Mortgage

With home equity mortgage, an individual can take money from a lender against the house he or she owns. First of all home equity means the percentage or portion of ownership one holds in a home you purchased.

For instance, if a person fully owns a home valued at $200,000, he can use a percentage of the home as a collateral to borrow money, which he will repay over time within a specified period, while still maintaining ownership of the home. Therefore the home equity of him becomes the percentage of ownership he has in the home. So if he borrows a lump sum of $60,000 (30% of home value) against his home, then his home equity will be $140,000 (70% of the home value). Various banks have their terms and conditions that apply to home equity mortgage.  

Therefore, with home equity mortgage one can borrow a lump sum of money against the person’s value of equity in the home, and payback the money overtime within a specified period, while still maintaining ownership of the home.

You can use the borrowed money for whatever purpose but some banks would only allow you to use it for home related purposes like repairs or home improvements.

3. Home Completion Mortgage

While there is access to a range of mortgages that allows you to buy a house in Ghana and pay monthly, some individuals would always like to build their own houses to their taste. For individuals who love to build their own houses to their design and preference, there is the home completion mortgage is available to assist, them complete the building of their houses.

Ghanaian banks which provide this mortgage type requires that, the property should have reached the level of lintel before application and the mortgage would be provided only up to 50% percent of the total cost of building the house, with a payment plan up to 15 years (Republic Bank).

This type of mortgage is always best to secure when you are financially constrained while building your dream home.

It could be concluded that owning a home in Ghana could be easy with banks in Ghana, providing a range of mortgage opportunities to individuals who are in need of a home. Whether you want to buy a house in Ghana or build a house in Ghana, there is always a mortgage for you. Salaried workers should always remember that, they can always buy a house in Ghana and pay monthly.

 

 

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