Here are tips to finance your house purchase including several banks that provide mortgages  in Ghana:

1. Self-financing
2. Absa Bank
3. Cal Bank
4. Stanbic Bank
5. Republic Bank
6. EcoBank
7. Fidelity Bank
8. Universal Merchant Bank (UMB)
9. First National Bank

 

Are you planning to buy your new home and looking for ways to finance your property? Worry not. I understand purchasing a house is a significant milestone for you and any Ghanaians. I will walk you through all option available for you to make an informed decision.

 

Self-financing

Ghana real estate is mainly hard cash- kind of “show me the money” approach. Real estate developers offer flexible payment plans that allow buyers to pay in installments over an extended period. If you are buying a home from a developer, you will be offered payments in trenches and the development progresses.  This options can be beneficial if you prefer to pay for your property gradually.

Fanda Group ,  real estate developer in Ghana  offers home buyers flexible payment plans for homebuyers looking to own a villa in their greenery, solar powered, Luxury gated community  La Margo Villa at Kwabenya, Accra.

 

 Read also:WHY THE DIASPORA SHOULD INVEST IN GHANA REAL ESTATE

 Mortgage Financing Options

Report shows that just 0.8% of homeowners in Ghana funded their home purchase using traditional mortgage financing.  . If you are part of the 2%, I will give you a list of lenders in Ghana that offer home loans for homebuyers.

You need to shop around multiple mortgage lenders to compare interest rates, terms, and conditions. A lower interest rate can significantly impact the overall cost of your loan. But wait:

What is the current mortgage rate in Ghana?

Interest rate for GHS loan is from 24%, 28% or 11.5%  and 20% as down payment. Rates however, vary from bank to bank with mortgage tenure range from 5 year, 10 years or 20years.

Types of mortgages available

There are different types of mortgage programs depending on the mortgage lender. Here is what you should expect:

• Home acquisition loan
• Home equity
• Home completion
• Home improvement
• Pension backed packages
• Pension short Term mortgage

 

 Now, let’s delve into a list of mortgage lenders to shop for  your house financing:

 

Absa Bank Ghana

Absa bank is one of top banks in Ghana.  Here is what they offer for home loans:

• The annual percentage rate of 26% is applicable
• Up to 90% finance for home purchase and up to 70% for equity release and home improvement
• A maximum debt service ratio of 50%
• Loan you up to GHS5,000,000 depending on your income and property
• A tenor of 5 to 20 years

Requirements for a home loan

• Property should be located within Accra and Kumasi and their environs.
• You don’t have to necessarily bank with Absa to qualify for a mortgage (after approval, you will have to move your income or salary to Absa if you are not a customer yet).
• The maximum repayment period is 20 years or up to the age of 60 years, whichever is shorter (dependent on the retirement age required by your employer).

Read also:How to Buy A House in Ghana and Pay Monthly? Here is How

 Cal Bank Ghana

CalBank Mortgage is also an option to explore. They offer both GHS and USD. Here is their financing options.

Mortgage Term
Range from 5-15 years (180 months).

Maximum Financing Terms (LTV):
Home Purchase / Developer or Home Completion:
– 85% of property value – Greater Accra and its environs
– 80% of property value – Greater Kumasi and Sekondi-Takoradi and it environs

Equity Release:
– 70% of property value – Greater Accra Region
– 60% of property value – Greater Kumasi and Sekondi-Takoradi

Refinancing:
– 100% takeover of full mortgage loan amount with other banks

Payment Frequency: Monthly and not more than 50% of monthly net income may be used to service the loan.

 

 Stanbic Bank Ghana

Stanbic Bank also offer homebuyers opportunities to finance their outright home purchases:

Mortgage from 5-20% and facility fee of 2%.

Requirements:
Work for any Stanbic profiled organisation

1. Earn a minimum net salary of GHS6,000 or USD2,500 or GBP 1,800 a month
2. Be permanently employed
3. Be a high-net-worth individual considering buy-to-let options
4. Be over 21 years and under 60 years by the end of the loan term.

Supporting documents required:

1. Proof of income – past three months’ payslips
2. Proof of past two years employment
3. Proof of identity – passport, driver’s license, Voter’s Identity Card
4. Proof of residence
5. Offer letter from developer (for Home Purchase, Developer Construction and Employee Mortgage Scheme)
6. Bill of quantities, building plan and permit (for home improvement and developer construction)
7. Property title documents (To begin title search)
8. A Valuation Report from one of our approved valuers will also have to be given to us

 

Down Payment:

You are required  a 20%  down payment of the property value.

Mortgage terms: Their loan terms can vary, but typically range from 10 to 20 years.

 

Republic Bank Ghana

Formally known as HFC Bank , the Republic Bank offers variety of products for your home purchase:

Down Payment: Republic Bank Ghana generally requires a minimum down payment of 20% of the property value.

Financing: They offer mortgages that cover up to 80% of the property value, while the remaining 20% is covered by the down payment.

Mortgage terms: Loan terms can vary, ranging from 10 to 20years.

Interest Rates in GHS:

Mortgage up to 10yrs is 27% per annum

Mortgage  from 10 to 20 yrs terms is 28% per annum

National homeownership scheme rate is 18.5% per annum

Interest Rates in USD:

Mortgage to up 10 yrs is 11.5%

 

 

Ecobank Bank

Ecobank is also a mortgage lender   offering loans for home buyers with payback up to 10yrs.

Mortgage Requirements:

Income Proof: Salaried employees must provide salary slips for the last six months, while self-employed individuals need to submit audited financial statements for the past two years.

Proof of Identity: Valid national ID card, passport, or driver’s license.

Proof of Address: Recent utility bills or rental agreements that clearly display the applicant’s address.

Property Documents: Sale and purchase agreement, land title certificate, building permit, and architectural drawings.

Down Payment: A minimum of 20% of the property value is usually required as a down payment.

Bank Statements: Applicants should provide bank statements for the last six months to verify their financial stability.

Credit Check: Ecobank will conduct a credit assessment to evaluate the applicant’s creditworthiness.

There also have Pension backed mortgage and Pension short term mortgage. Check more details here.

For details you may contact Ecobank at +233 302 213 999 Toll Free 0800003225 (MTN or AirtelTigo only) or 080030000 (Vodafone only) [email protected].

 

 Fidelity Bank Ghana

Fidelity bank offers a range of financing options for home purchase, refinance, home equity, home improvement, home completions and serviced plots as well:

Down Payment: Fidelity Bank Ghana generally requires a minimum down payment of 20% of the property value.

Financing: They offer personal loans that cover up to 80% of the property value, with the remaining 20% covered by the down payment.

Loan Terms: Loan terms can be customized based on the borrower’s eligibility and the specific loan product chosen.

 

Universal Merchant Bank (UMB)

UMB is another mortgage lender that offer attractive rates that you may want to contact. Here is a breakdown:

Down Payment: Universal Merchant Bank typically requires a minimum down payment of 20% of the property value.

Financing: They provide mortgage loans that cover up to 80% of the property value, while the remaining 20% is covered by the down payment.

Interest Rates: ranges from 19.52%, 19.56% to 21.80% respectively for one-year tenure.

Loan Terms: Loan terms can vary based on the borrower’s eligibility and the specific loan product chosen.

 

First National Bank

Detail of the property you are buying (duly signed Offer to Purchase)

First National Bank also offers a range of financing programs for homebuyers

Supporting documents include:

• Copy of your valid identity document (ID)*
• Latest 3 months bank statement*
• Latest 6 months bank statement (if not banking with First National Bank Ghana)
• Introduction letter from employer if employed
• Marriage certificate (if applicable)
• Details of the property you are buying (duly signed Offer to Purchase)

 

Conclusion

There are many other banks that could finance aside those  mentioned above. You may want to shop for different rate and terms of course. Dont limit yourself to only one bank. Also note, all rates and terms stated could change , i advice you to contact a local branch for up-to-date financing information.

 

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Are you a foreigner considering investing in Ghana’s real estate market? Or are you a Ghanaian or  African diaspora planning to buy your dream home in Accra, Ghana? We have got you covered and would love to connect and serve you. Buying your dream home in a new development project by a real estate developer gives you flexibility with regard to payment plans to choose from. You don’t have to go through all that stress to get building permits and regulations checked. We have done all the hard work.  Your only job is to own it by reserving your home now. Get in touch with us today, tomorrow might be too late.

Read also:​The 9 Advantages Of Living In A Gated Community In Accra