Buying a home is a dream come true for many people. However, not everyone can comfortably finance their dreams outright. This is where mortgages come in to save the day. Mortgages are loans taken out to buy a house or property. Much like there are car loans, mortgages are home loans. In Ghana, these home loans can be acquired from banks and other financial institutions.
Psst: We put together a list of mortgage houses for sale in Ghana you should check out.
Types of Mortgages in Ghana
There are three main types of mortgages in Ghana. These are Home Construction Mortgage or Self-Build Mortgage, Home Purchase Mortgage and the Home Completion Mortgage.
Home Construction Mortgage/Self-Build Mortgage is a home loan to help people build their homes from scratch. Monies here are usually based on the level of completion and an evaluation by a valuer. The Home Purchase Mortgage on the other hand, is a home loan to buy a house. You pay an initial deposit (roughly 15% of the cost of the house) and pay back the loan in instalments over a period.
Home Completion Mortgage (HCM) is a type of loan designed for houses in various stages of completion. This is ideal for people who had to stop building along the way due to financial difficulties.
General Mortgage Eligibility Requirements in Ghana
Across all the mortgage providers are very common qualification requirements and info. These are:
- Applicant must be between 18 and 55 years old;
- Be financially capable of repaying the loan;
- Have a clean credit score, meaning no bad debts;
- Be able to pay the downpayment, usually 15 – 20% (although there are some exceptions) while the bank covers the rest;
- Offer sufficient collateral/security for the mortgage;
- Thanks to a Bank of Ghana directive, the maximum repayment amount is 40% of your monthly salary.
Documents to Submit When Applying for Home Loan in Ghana
- Two Proof-of-Address Forms
- Proof of Income
- Two Forms of Personal Identification (passport, driver’s licence, National ID)
- Recent Banking Statements
- Credit Reports
- Offer Letter
- Letter of Intent
- Facility Letter
- Professional Appraisal
- Final mortgage agreement signed and witnessed, which may be done through Power of Attorney
- Fixed Interest Rate
Top 5 Mortgage Banks in Ghana:
Ghana Home Loans (now First National Bank)
Ghana Home Loans is the foremost bank when it comes to home financing in Ghana. The bank has several years of experience operating in the real estate space and has worked with all the top developers including to provide luxury apartments and homes to Ghanaians and non-Ghanaians alike.
Republic bank aims to support both companies and individuals to acquire a 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 process 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 can be contacted on +233 302 429 555 / +233 302 258 106 / +233 302 242 093
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 the 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 organisation 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.
Stanbic Bank can be contacted on +233 302 815 789 / 080 010 009
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 loan 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
- Deed of assignment
- Site plan
- Building permit
- Ground rent
- Consent to mortgage for leasehold (if applicable)
- Sale and purchase agreement
For more information, do contact Absa via email at [email protected] or 0800 222333 (Toll Free) / +233 (30) 2429150 (charges apply)
Aside from their other functionalities as a bank, Cal Bank also seeks to assist clients to gain access to loans to purchase a home of their choice. The Cal Bank Mortgage has been designed to meet your present home loan needs. You are to be between the ages of 21 to 55 to be eligible for a mortgage from Cal Bank. It is required that you fill the Mortgage form from Cal Bank and follow the procedures detailed out. Some requirements to acquire a mortgage from Cal Bank are :
- A completed and signed mortgage application from Cal Bank.
- An offer letter from the Real Estate Developer
- A form of identification
- Income verification
- Credit History
- Property documents
- Down Payment
- Disbursement Conditions ( Pre and Post)
- Security: personal guarantee of applicant.
You can contact Cal Bank on +233 800 500 500 or email [email protected] for more information.