Investing in property is one of the best decisions you can make in your adult life and if you’re a savvy up-and-coming property owner, it helps to know what your options are when it comes to financing your new home.
Ghana has four main mortgage types available to finance your new home, depending on your needs. These include a home purchase mortgage (HPM), home equity mortgage (HEM), home completion mortgage (HCM) and the home improvement mortgage (HIM). Different institutions will offer variations on these four mortgage types, but the underlying concept is the same.
Home purchase mortgage
The home purchase mortgage is for companies and individuals interested in buying a property for their own use or rental use. The borrower is usually required to make a minimum deposit of 15%, while the bank will provide a maximum of 85% of the purchase price.
Home equity mortgage
The home equity mortgage is designed for people who already own their property and wish to borrow on a long-term basis using their home as collateral to expand their business, undertake home improvements/expansion, etc. The maximum loan amount under this programme varies from one lender to another but the duration is usually 15 years.
Home completion mortgage
This mortgage option is designed for those who need to complete the construction of their future home. The maximum loan amount once again varies from one lender to the next and the maximum duration most lenders offer on these loans is 20 years.
Home improvement mortgage
Similar to the HEM loan above, this loan is for existing homeowners who wish to improve their properties; however, the funds can only be used for the property against which the loan has been taken out.
Ghana’s main lenders include HFC Bank, Ghana Home Loans, Fidelity Bank, CalBank (CalMortgage) and Stanbic Bank. When applying for finance, most lenders will require proof of the following:
• Credit history report
Now that you know the options available for financing your new home, contact Mobus today for more information on some of the ground breaking property developments in our portfolio.
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