The Government’s decision to reduce the mortgage rates for about 60% and the Affordable Rent-to-Own policy under the National Housing and Mortgage Fund has favoured homeowners and first-time buyers, an experience real estate professional Surv. Senu Maha-Atma Pomevor, has said.
The Government of Ghana in 2018 initiated and approved National Housing and Mortgage Fund (NHMF) based on two pilot schemes; the National Mortgage Scheme NMS and the Affordable Housing (Rent-To-Own).
Under the National Mortgage Scheme (NMS), mortgages are being underwritten at a rate of 10%-12% by the Participating banks namely, GCB, Stanbic Bank Ghana Ltd and Republic Bank Ghana Ltd. these reviewed mortgage interest rates have made owning a home a reality for many more Ghanaians.
According to Surv. Senu Maha-Atma Pomevor, Senior Stool Lands Officer, at the office of the Administrator of Stool Lands, this Rent-to-Own scheme means that homeowners and first-time buyers continue to find themselves in a favourable position in terms of the interest rate charged on their home loan.
He explains that “the rent-to-own scheme is a good policy if the government will be able to develop that. This scheme will be able to help solve the housing deficit in the country.” He stressed that houses are too expensive in the country if you compare the prices of 3bedroom houses to the European markets.
The rent-to-own scheme is designed to eliminate the burden of two-year advance system and plan to give low-income earners the opportunity to rent and eventually own homes, with the focus on semi-detach and detach apartments in the country. The Affordable Housing REIT’s is promoting the rent-to-own scheme with only monthly rent payments and, after a period, the occupant has the option to own it.
The National Housing and Mortgage Fund commissioned its first phase of 200 housing units at community 22, the pilot housing project comprises of 50 units of two-bedroom detached houses, 118 units two bedroom semi-detached and 36 number of one-bedroom semi-detached for public sector workers in the country.
Source: Abdul-Razak Mohammed (Real Estate Times Africa)