Mortgages In Ghana — The Myths And The Facts. If you might be renting now.
Shopping for a house might be a greater monetary determination. Of course, that depends upon a number of components:
- the place you reside
- How a lot you pay now as a lease
- An accessible fit-for-purpose home you possibly can afford,
- Present mortgage rates of interest and your aspirations.
Taking your first steps in direction of dwelling possession – and getting a foot on the property ladder – will be an thrilling journey. Kojo Addo-Kufuor, Executive Head of Home Loans at First National Bank Ghana defined that aside from the monetary facet, it is usually essential that you simply’re armed with info – and the fitting info at that –
earlier than you begin your journey to homeownership.
“While it is important to do your research during the home-buying process, you must not believe everything you hear.”, he says. You may do with all the assistance to make an outright buy, or get a mortgage to purchase that land, construct that home or purchase out that cozy property in that property you’ve been eying for a while.
Contrary to what you will have heard, getting a mortgage doesn’t require excellent credit score or a big down cost. It is nonetheless protected to say it’s best to get your funds so as earlier than you begin home looking or speaking to lenders.
Kojo Addo-Kufuor, on this piece, helps you cut up the assumptions, untruths, and the gaps within the public data on buying a house mortgage.
Mortgages are the protect of the aged and fulfilled
Many individuals of their 20s and 30s consider dwelling possession as a distant prospect; this isn’t precisely the case. Shared issues and expertise have proven that younger individuals see the deposit as the largest impediment to getting on the ladder. It will not be that horrible a prospect. You can now get a house mortgage supply of as much as 100% property’s worth in case you are resident in Ghana and as much as 70% in case you are non-resident. This means it’s potential to purchase a home with out making any down cost in any respect.
First National Bank’s modern First Time Buyer dwelling mortgage product is greatest fitted to younger professionals or executives who’ve simply graduated into their first jobs, and/or supplemented by different income strains.
Such younger professionals or executives may simply get to translate their month-to-month lease into month-to-month mortgage repayments in direction of the acquisition of their very own property. In truth, over 60% of the house mortgage consumer base are beneath age 45. It’s additionally essential to contemplate that along with your mortgage repayments, you’re including to the fairness you personal within the property with every installment paid, whereas this isn’t the case whenever you pay lease as a tenant.
You can solely get a mortgage out of your financial institution
The reality is numerous individuals consider that their current financial institution is the one and solely place to go when it’s time to consider a mortgage.
That might be as a result of your financial institution will often ship promoting materials on what they will supply comparatively together with preferential charges. It nonetheless is smart to go searching some extra. The banking trade in Ghana is sort of diversified, and banks are including on to their portfolio with the fitting partnerships. First National Bank after merging with the erstwhile GHL Bank, has enhanced its dwelling mortgage portfolio to serve many extra Ghanaians with merchandise which hitherto wasn’t accessible.
It’s apparent that you simply’ll wrestle to get a mortgage with a low credit historical past. The evaluation of your utility goes past that. Your credit score historical past and your present means to settle such gaps might be thought-about within the course of. Speak to a mortgage advisor at First National Bank Ghana. These individuals allow you to make the fitting decisions for a house mortgage primarily based in your responses to some background questions after which information you appropriately by way of the method.
The greatest mortgage deal is one with the bottom rate of interest
It’s definitely proper to consider the rate of interest as how a lot your mortgage really ‘costs’, as that is what you pay to have your mortgage, on prime of the fairness you’re accruing in your property. But that’s to not say it’s best to assume that the bottom rate of interest means the most affordable mortgage.
Only full time salaried employees get mortgages in Ghana
This is a standard false impression that lenders see anybody, not in a full-time formal job as a danger. With the rise in freelancing, entrepreneurs, small enterprise house owners, aspect hustle fanatics, versatile and contract work in Ghana, banks like First National Bank Ghana take a way more individualistic strategy on the subject of assessing individuals’s credit score and underwriting conditions.
Mortgages In Ghana — The Myths And The Facts
Written By: Mr. Kojo Addo-Kuffour (Executive Head, Home Loans, First National Bank)