In Ghana, there are several institutions that offer Ghanaians mortgage loans. Cal Bank, EcoBank Ghana, SG-SSB, Ghana Home Loans, HFC Bank Ghana, Stanbic Bank among others are institutions that offer a mortgage. Currently, apart from delivering the forms in person, institutions like Ghana Home Loans and Royal Estrade Group also allow applicants to apply for the loans online.
Below are the four steps to getting a mortgage loan in Ghana:
1.Pre-Qualification: As a potential borrower before you head out to the bank, here are some of the basic requirements:
- You will be required to get a life insurance and or protection for the property you are acquiring from the bank’s preferred insurance company.
- The tenure of the property should be five to 15 years.
- Proof of identification.
- Applicants must be in the range of 18-55 years.
- Letter of intent.
- Current bank statement.
- Personal guarantee of the applicant.
However, these requirements vary from different institutions.
2. Select the type of mortgage: There is a wide range of mortgages available to prospective borrowers. It can also be accessed for home acquisition, home furnishing, equity lease.
3. The Interest rate: If you are borrowing in dollars, the interest rate ranges between 10 to 13.5% and 30.5% to 34.5% in cedis. However, this may vary from one financial institution to another.
4. Things to look out for: According to Mr Kofi Siabi, Head of Marketing at Cal Bank, the following should be noted:
- Look at the current interest rate of the institution.
- The ability of the institution to fund the loan.
- The terms and condition of the loan. It is the part that is usually written in small wordings, which is usually ignored.
- The credibility of the institution.
This pretty much sums up how to acquire a mortgage loan in Ghana.