GHL Bank to roll out ‘cedi mortgages’ before end of 2019

GHL Bank to roll out ‘cedi mortgages’ before end of 2019
Source: Ghana | Charles Ayitey | JoyBusiness
Date: 30-05-2019 Time: 06:05:57:pm

Mortgage financiers, GHL Bank, will by the end of 2019 introduce cedi mortgages to help many home seekers finance the purchase or establishment of their houses. 

“It makes sense that in taking loans, you do so in Cedis. Because of current cedi-interest rate, it makes it quite difficult to purchase a house. Once we have lower rates it eases this burden since they can now earn more loans to purchase these houses, this initiative should kick off by the end of the year,” Head of special projects at GHL Bank Ltd, Edward Nyarko disclosed to JoyBusiness at a Round Table on real estate potential in Ghana and Dubai organized by the Dubai Chamber International Office.

Mr Nyarko said this move will help deal with the housing deficit.

Meanwhile, real estate developers from Dubai in Ghana to explore investment opportunities in Ghana’s housing sector have been tasked to focus on houses for the middle to lower income earners. 

Executive Secretary of the Ghana Real Estate Developers Association (GREDA), Sammy Amegayibor said unlike the thirst for luxury vehicles in Dubai, Ghana’s housing sector demand is more from the lower middle-income bracket.

“Dubai realtors are much interested in the luxury housing market but the truth of the matter is that the housing deficit demand is not in the luxury project market but rather the middle to lower income housing sector,” he said.

The country currently faces a housing deficit of 1.7millon. Commercial banks are charging between 25 and 35 per cent interests on mortgage loans. Analysts have described this figure as too high for the ordinary Ghanaian.

The Round Table on real estate potential in Ghana and Dubai saw stakeholders in Ghana’s housing industry engage real estate investors in Ghana over opportunities in Ghana’s real estate industry.