Latest News

Finance & InvestmentFri, 27 Aug, 21

Some Mortgage Packages in Ghana and the Providers

Some Mortgage Packages in Ghana and the Providers

The dream of owning a home is one of the foremost desires of every individual and this comes with a huge deal of responsibility. While some may be able to afford their own homes without struggle, it is not so with the larger Ghanaian majority. The capital intensity required for such an investment is no joke.  This has led to the provision of mortgage products by some banks. The required procedure for accessing mortgage may differ from one bank to the other.

Stanbic Bank

Stanbic bank is one of the largest commercial banks in Ghana. The facility fee is 2% with loan repayments being between 5 to 20 years to repay. In addition, there is no limit to the amount you wish to acquire. Acquiring a home loan may depend on your income as well. Stanbic bank gives you the flexibility of repaying the loan at a pace you may be comfortable with.

 Stanbic Bank also has 6 different mortgage products to choose from, namely:

Home Purchase – This is primarily meant for the immediate purchase of completed homes.

Developer Construction – This is perfect for individuals who are yet to complete their homes from Stanbic Banks' preferred developers.

Equity release – With the equity release you can take a loan and use the cash released for a variety of personal needs, including the purchase of another home or prime land, business expansion or funding education.

Employer Group Mortgage Scheme – Developer-based home construction on your land bought under organization block lands schemes.

Home Improvement – This plan allows you to renovate, remodel or expand your current home.

Refinancing – The refinancing mortgage is in 3 forms:

Internal refinancing – The internal refinancing allows you to arrange new financing terms such as the term of your existing Stanbic Home Loan, currency and amount.

External Refinancing – Financing is provided to help take over existing home loans from other banks.

Cash Refinancing – This process gives you access to extra money if the value of your property has appreciated over the years.

 

Absa

Absa promises to give you a more convenient, easier and faster means of receiving a mortgage. Absa helps you to own a home, borrow against a home you own, even give your current abode an upgrade or help you take over your home loan from another financial institution. They offer up to 90% finance for home purchase and up to 70% for equity release and home improvement. With Absa, your property should be located within Accra, Kumasi and its environs. When applying for a home loan in Ghana at Absa, you may need to bring along, but not limited to, the following items:

Your current pay slip and a form of identification.

An offer of sale from a vendor

Land title certificate, Indenture, Deed of assignment, Site plan, Building permit, Ground rent, Consent to a mortgage for leasehold (if applicable), Sale and purchase agreement

 Republic Bank

Republic bank aims to support both companies and individuals to acquire residential property for investment or private purposes. The maximum amount of loan a person can take depends on the client’s credit profile. You will need to make a down payment of 20% and the maximum term is 20 years. There is also a processing fee, which is 1.5% of the proposed loan if you are Ghanaian and USD250 /GBP150 if you are a non-resident Ghanaian.

Republic Bank has about 6 mortgage packages for individuals and companies. They are as follows:

Home purchase mortgage: This form of mortgage is designed for individuals or companies to purchase a property for personal use or investment purposes. The minimum down payment one can make is 20%. The maximum mortgage tenure is 20 years for resident Ghanaians and 15 years for non-resident Ghanaians. The processing fee for resident Ghanaians is 1.5% of the proposed loan and USD 250 for non-resident Ghanaians. Non-resident Ghanaians may also need to pay for the facility fee which is 1% of the proposed loan. The preparation towards registration of legal documents, which includes the legal fee, is 1% of the property price for stamp duty on the title, 0.5% of the loan amount for stamp duty on mortgage deed and GH¢1,500.00 towards registration on the title for both resident and non-resident Ghanaians.

 

Home equity mortgage: The home equity mortgage enables applicants who own homes or may have already invested in residential properties to take out or release the equity in those properties to build another property or renovate a property. This product is suitable for existing homeowners and companies with properties. Republic bank states that the mortgage loans shall not exceed a maximum of 80% of the forced sale value (FSV) of the property. The maximum term for the facility is 15 years for both cedi and foreign currency loans. The title to the property should not have any controversies surrounding it. The title must also be duly registered. With the legal fee, Republic Bank requires 0.5% of the loan amount for stamp duty on Mortgage Deed and GHC600 towards registration on the title (if the document is already registered, if not GHC1,500.00 toward registration on the title). This applies to both resident and non-resident Ghanaians.

Buy, Build and Own a Home: This type of mortgage package is designed for low-income individuals who can only own their own home by acquiring land and developing it over time.

This mortgage product entails two main features. The “Buy” land portion and the “Build and Own” portion. Beneficiaries will contribute 10% of the cost of the land. The maximum amount for the “Buy” portion of the loan is USD15, 000 or the cedi equivalent.

After 50% payment has been made on the initial loan, the customer qualifies for the “Build and Own” portion of the product. The customer selects one out of six designs from the Bank to construct a house. The selection of the house is done at the time of the initial loan application for the “Buy” land portion. The maximum loan amount for the “Build and Own” (Construction) is USD35, 000 or the cedi equivalent.

The maximum term for each portion of the facility is 10 years which totals up to 20 years. The land must be registered appropriately and the title must be clear and undisputed. All permits such as development permits, building permits and approved building plans are necessary requirements.

Home Completion Mortgage: The Republic Bank Home Completion Mortgage aids individuals to complete the construction of their houses. The amount required from Republic Bank to complete the house must fall within the maximum loan. More than 50% of the total cost of construction of the property cannot be requested for a loan, and the property must have reached at least the lintel level. The maximum term for this facility is 15 years for both cedi and foreign currency loans. All necessary building plans and permits, alongside appropriately registered title to the property, must be submitted to the bank. The loan will be disbursed in stages. Republic Bank will inspect the property after each stage of disbursement to ensure that the funds are being utilized properly.

Public sector home scheme: In the 2007 budget, the Government of Ghana mandated Republic Bank to provide an affordable homeownership scheme for public sector employees. All applications for the affordable homeownership scheme will be evaluated in accordance with Republic Bank’s eligibility and credit criteria.

The following qualify under the scheme:

All current public sector employees who have been in public sector employment for a minimum of 5 years.

The applicant must not have reached the general mandatory retiring age of 60 or 65 in the case of judges of the High Court and 70 years for judges in the Appeals and Supreme Courts.

For applicants who have 5 years or less to retire, Republic Bank will lend to such applicants provided GOG agrees to pay the outstanding loan amount due, out of the borrowers' total lump sum entitlements when the borrower is about to go on pension or when the loan matures whichever comes earlier.

 First National Bank

First National Bank, now merged with Ghana Home Loans, provides its services in different forms when it comes to mortgages in Ghana. The home purchase mortgage includes the following:

Types of mortgages at First National Bank:

Home Construction Mortgage is given to individuals who need a loan to build their homes.

The land purchase mortgage from First National Bank helps you own a land.

The Home Owners Mortgage is also available for homeowners who wish to borrow for a longer period of time and use their home as collateral.

The Save-to-Own is perfect for young individuals who may now be starting out or self-employed individuals who may not have a steady flow of income but wish to own a home.

First National Bank offers various packages under the home purchase mortgage and they are as follows:

First-time buyer - If you are a first-time buyer, First National Bank offers this service exclusively to individuals who have never purchased a home before.

Buy-to-let - Interested in buying another property to rent? Allow First National Bank to help you with the process. They offer buy to let services where you can buy another property for the purpose of investment and rent it out to tenants.

100% Purchase – This is similar to the first-time buyer package. If you are a Ghanaian and wish to purchase your first home, you can apply for a 100% loan from First National Bank to purchase the property if you cannot raise the minimum deposit.

Home Purchase Loan – The Home Purchase Loan enables homeowners to purchase an additional home.

Joint applications will be accepted in the form of husband and wife or parent and child.

Upon the beneficiaries’ resignation or cessation of employment with GOG the interest rate on the mortgage loan shall be revised in accordance with the prevailing Republic Bank market rates.

Home improvement mortgage: The Republic Bank Home Improvement Mortgage is designed to assist individuals to renovate their homes or undertake extension works on their existing houses. The loan can also be used to acquire fixtures of chattels for the home. The target group for this product is existing homeowners and companies with properties. The maximum term for this facility is 15 years for both the cedi loan and foreign currency loan. The applicant is to provide a clear and undisputed title to the property, which must be duly registered.

 

Source: Reuben Affum-Ankamah(Real Estate Times Africa)

Welcome, Today is Fri, 29 Mar, 2024

Latest Publication

 The Market

  • Bank

  • Rate

  • Tenure

  • Ecobank

  • 23%

  • Fidelity Bank

  • 22%

  • First National Bank

  • 23%

  • Republic Bank

  • 22%

  • 10yrs

  • Stanbic Bank

  • 20.30%

  • Cement

  • Weight

  • Price

  • Cimaf

  • 50kg

  • GHS 47.00

  • Dangote

  • 50kg

  • GHS 50.00

  • Diamond

  • 50kg

  • GHS 48.00

  • Ghacem

  • 50kg

  • GHS 50.00

  • Pozzolana

  • 50kg

  • GHS 47.00

  • Safe

  • 50kg

  • GHS 47.00

  • Supacem

  • 50kg

  • GHS 47.00

  • Currency

  • Buying

  • Selling

  • GHS - EUR

  • 7.7430

  • 8.2360

  • GHS - GBP

  • 9.1678

  • 9.7446

  • GHS - NGN

  • 70.4182

  • 70.4370

  • GHS - USD

  • 7.0500

  • 7.4500

  • GHS - ZAR

  • 0.4608

  • 0.5068

  • Current

  • Year Ago

  • GDP Growth Rate

  • 4.64%

  • 0.88%

  • Ghana Reference Rate

  • 14.50%

  • 15.50%

  • Inflation

  • 8.97%

  • 9.87%

  • Policy Rate

  • 13.50%

  • 14.50%

  • T-Bill (182 days)

  • 12.4316%

  • 13.2555%

  • T-Bill (364 days)

  • 13.8773%

  • 16.1134%

  • T-Bill (91 days)

  • 12.6100%

  • 12.4701%

Videos

Opinion

Partners

Feedback Form

We would like to hear from you.
Top