For a non-Ghanaian looking to buy property in Ghana it is advisable to secure a mortgage even before you begin your property search. This way you can avoid delays in the buying process once you have found the perfect house.
Like most countries, the best mortgages are available to people who are working and can put down some sort of deposit on the property. A good place to start your mortgage search is your bank. Getting a mortgage with them may be easier than another lender as you already have a relationship with them.
If you can’t get a mortgage with your bank then start with the main lenders in Ghana:
Each of these providers offer variations on the four main mortgage types in Ghana, albeit under different names.
This type of mortgage is designed to assist companies and individuals in buying a property for their own use or for rental. The borrower is usually expected to make a minimum 15% downpayment and the bank will provide a loan equivalent to a maximum 85% of the purchase price.
The loan terms are usually 15 years and as with all home loans in Ghana, the interest rates are variable (ARM) rates.
This product is designed for people who already own property to release equity in that property in order to improve their liquidity. Only people or companies that already have properties which are fully paid for or are currently financed may apply for this mortgage.
The maximum loan allowed under this programme varies from bank to bank, but the interest rate is always variable and the duration is generally 15 years.
Borrowers needing a loan to complete the construction of their home should apply for this product. The house could have been initially funded by the owners own money, their employer, bank or another mortgage company.
Again, the maximum loan varies from bank to bank but the loan term is 15 years, the maximum loan-to-value is usually 50%, and the interest rate is variable.
This loan is designed to help existing owners to improve their property or business premises. It is similar to the HEM above, except the loan must strictly be used on the designated property.
Mortgage requirements in Ghana are much the same as in other countries. In order to be approved for a loan you will need to satisfy the following criteria:
Prospective applicants must be at least 18 years old and not older than 65. The length of the mortgage cannot extend past a person’s retirement age. Mortgage applicants older than 55 should ensure they can secure a 15 year life insurance policy before applying for the mortgage.
The applicant must be able to provide evidence (bank statements, pay slips and tax returns) of their gross monthly income. Self-employed applicants will have to provide evidence of their salary from a registered accountant.
The documents required for a mortgage application are as follows:
For a full list of mortgage requirements see the Royal Estates Group website.