Buying a house is one of the major investments for most people. In Ghana, it's even more difficult to get a mortgage as compared to many other countries. This article will discuss 5 easy steps to get a mortgage in Ghana.
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Buying a home in Ghana is different than in most other countries. One of the major differences is that mortgages are not as accessible. According to a 2016 report, less than 20% of all homes were financed by mortgage loans. This means that for most people, purchasing a home involves obtaining all the funds up front and then paying them back with fixed monthly payments.
1. Get a savings account
First you will need to open a Ghanaian Bank Savings Account and deposit at least GHC 10,000
2. Obtain a National Identification Document
To open the bank account, you will need to bring along your national identification card which you should have obtained from the National Identification Bureau (NIB).
3. Obtain an employment letter
You will be required to obtain an employment letter from your employer in order to get a mortgage in Ghana. To avoid any problems when obtaining this letter it is advisable that you find out if there are any requirements for this letter before going about it and getting the document signed by your boss.
4. Find out how much you can borrow using loan calculator
This is one of the most important steps in getting a mortgage in Ghana as it helps determine how much money you can borrow and at what interest rate. You could use online tools such as www.ghana-mortgage-calculator.com or google search "mortgage calculator". If you want more information on how much money you can borrow, contact any of the following: Central Bank of Ghana, GHBank, CitiBank, Allied Merchant Bank Limited or NITEL TVET College Credit Centre for Trade Finance & External Trade Development Services
5. Get a home inspection before purchasing a property
Once you have found a house that meets all your specifications, make sure to get a home inspection done on the property before signing off on
The documents required in Ghana are listed below:
-Invoice copy of the house being bought
-Copy of the property title
-A letter from a government company or a cooperative that provides housing to employees
-Letter from a bank with a confirmation that the person is employed in a full time position. This is in addition to salary slips and identity card
-Certificate of clearance from the district chief, confirming that there is no outstanding debt from the applicant's name
-Income tax return for the past year, showing an annual income of at least GHS 75,000. Alternatively, if the applicant has been with the same employer for at least 5 years, they must provide a letter showing their total earnings for 5 consecutive years. For example if your income tax return shows you made GHS 100,000 last year then you will need to provide an employer letter confirming GHS 500,000 was earned over 5 consecutive years.
The mortgage rates in Ghana are 10% to 20%. As the banks are not too keen with giving out mortgages, you need to have sufficient collateral.
With the help of this guide, you will be able to work through the process of getting a mortgage in Ghana. You will learn how to choose the right mortgage, how to get the best rates, and what documents are needed.
