Owning a home is a dream many of us can share. But at the core of that dream is a potential nightmare, why?
The cost of acquiring a home can be a tall order and can take a toll on an individual who isn't' financially ready for that herculean task or arduous journey.
We are accustomed to tales of individuals who have taken mortgages and are burdened with the repayments as a huge chunk of their disposable income is used in paying these mortgages.
Cost of funds in Ghana is high, leading to high rates on these mortgages as lending is long term and attracts certain risks. The other part is the dollar-denominated mortgages which have lower rates but the exchange rate volatility may either bite or boost you, we are awfully familiar with the bites.
They sting. Enter the government. Through the Ministry of Works and Housing, the government plans to roll out a national mortgage fund to provide affordable mortgages to you and me.
The Ministry of Works and Housing will collaborate with the Ministry of Finance and establish a national mortgage fund as a special purpose vehicle.
This was revealed by the Minister for Works and Housing, Samuel Atta Akyea at a ministry press briefing last week.
This fund will leverage private capital such as housing bonds, pension funds and government funds as a source of capital.
But will it work?
I took a trip to Oyibi and then to East Legon speaking to different individuals on home ownership and mortgages.
My first guest, CEO of 7G properties Kafui Bernard Ahiable, told me as we stood in the serene atmosphere of Oyibi that I may need GH¢575,000 for a 3-bedroom house in the estate. However, he says there are others that attract a lower price as the homes built cater to several pockets. Is GH¢575,000 pricey for you?
My second guest, Nana Odeneho Kyeremanteng a real estate lawyer with over 30 years experience and CEO/President of Kyeremanteng group formerly Comet Group says the role of the government in driving a vibrant housing mortgage market goes without saying.
He believes this National Mortgage Fund is a step in the right direction and we need to pump in more from the government side to ensure adequate funding and sustainability.
He posits that if we follow laid down laws and procedure, we can turn the housing and mortgage albatross into a cloud with a silver lining. But the million Ghana cedi question is, can we?
Watch video below:
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