Owning a property is absolutely the best investment a person can make. Aside from the fact that real estate in Ghana and the world over appreciates with time, it is also a very safe way to invest money as you can easily track its value in the market. Many individuals who have made efforts to buy or build their own houses are always proud of such achievements, and Ghanaians are no exception.

Building a house requires a great deal of money. According to some developers, one needs a whooping sum of not less than $100,000 (GHC 250,971 at the time of writing) UPDATE (Currently 511,660.00) to embark on such a process. As this is a substantial amount, the need to make use of mortgage options in Ghana has become very important.

Prior to applying for a mortgage, it is important to understand the different mortgage facilities available to individuals and also the interest rates on these mortgages.

The self-Build Mortgage (sBM) is the loan to apply for if you are interested in building your own home. For most of the self-build mortgages, the money for each stage is usually only paid out once it has been completed and a valuator has visited the site.

There is also an option for the Home Purchase Mortgage (HPM) which is designed purposely for people who intend buying a house. The borrower is made to pay a minimum of 15% deposit, and the loan payment spread between 15-20 years.

Home Completion Mortgage (HCM) is a type of loan designed for people who already started the building process but stopped along the way due to financial problems. The uncompleted house could have initially been funded by the owner’s own money, his employer, bank or another mortgage company.

From the list above, you can then determine the type of Mortgage you require. Once this is done, you would need to submit a completed application form. Depending on the bank, you can do this online, or download, print and then scan and e-mail a completed form. Alternatively, you can submit an application in person at a bank. You will also need to decide whether you want to file an application by yourself, or jointly with two or more people with the proper relationships.

The documents that will be required of you by your bank are standard documents. They include two proof-of-address forms, proof of income, two forms of personal identification, recent banking statements, credit reports, Offer Letter, Letter of Intent, Facility Letter, Professional Appraisal,  and final mortgage agreement, signed and witnessed which may be done through Power of Attorney.

Lending rates in Ghana are extremely high at the moment, even when doing business with the best banking institutions. Current rates range, on average, from about 13.5%-30%, depending on your credit history. The following Banks are considered as some of the top Mortgage Companies in Ghana:

Top Mortgage Companies in Ghana

1. Ghana Home Loans

   Ghana home loans (GHL) have been in the Ghanaian loan market for over 11 years. They have grown to become one of the leading and trusted residential mortgage finance provider in Ghana. Recently, meqasa.com and GHL organized one of the biggest housing fairs for real estate prospects in Ghana. The housing fair was held at the GHL Bank forecourt in Airport Residential Area. The fair was organized to handle house or land to purchase, property to rent, home improvement ideas, furnishing, fittings and furniture.

2. Ecobank

   Ecobanks’ Mortgage Loan: (Available for completed buildings only) helps towards buying or completing a new home. This product according to the Ecobank’s website is repaid conveniently over up to 10 years. It is also available for only completed buildings only.

3. SG-SSB

   Societe Generale’s Finance Lease Loan: This is a scheme which Societe Generale enters into an agreement with institutions. This type of loan might be suitable for financing a building.

   It entails a competitive interest rate, has a repayment period up to 48months and has no limit on the amount of access. The only thing is the customer’s total monthly repayment, including the principal and the interest instalments must not surpass 40% of the total net take-home pay.

4. CalBank Mortgage

   CalBank’s Mortgage: Calbank’s Mortage product offer’s individuals to acquire homes. For the home completion product, the property must be at lintel level to be approved. Debt Burden must not be more than 45% of net income and Maximum Facility Limit of 85% of the value property. Read more here.

5. Republic Bank (formerly HFC Bank)

   Republic Bank and Regimanuel Gray: There are now a growing number of financial institutions in Ghana (Republic Bank and Ghana Home Loans) which have available mortgage finance schemes for resident and non-resident Ghanaians that you may wish to explore. Regimanuel Gray merged with these banks here to provide mortgage financing.

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Overview of Mortgage Rates in Ghana

Commercial banks continue to remain at 33.1 percent interest rate on the rate of mortgage recorded in August 21, 2017. Bank of Ghana’s Annual Percentage Rate (APR) and Average Interest on mortgages stays at 36.6 percent. Bank of Africa also stays at 36,6 percent interest on mortgage loans and is followed by Royal Bank with 35.5 – 40 percent. Barclays bank and Ecobank stays at 34.2 and 34.1 percent.