Ghana has a growing housing finance sector. As the mortgage market does not yet meet the breadth of the population who might afford a mortgage, most households still finance their housing independently, with savings or non-mortgage credit.
The lowest recorded interest rate on a mortgage in Ghana is 29 percent, and requires at least a 20 percent down payment. The cheapest newly built house by a developer recorded by CAHF is US$ 20 223, which is for a 50 square metre unit. Cement prices are slightly lower than the continental average, at US$ 8.44 for a 50-kilogram bag.
With an urbanisation rate of 3.51 percent, demand for affordable housing will remain strong, both for rental and purchase. The housing deficit is estimated to be 1.7 million, as at 2017. Housing microfinance will play an important role in increasing the supply of housing, and efforts to increase access should be undertaken. Yet Ghana Home Loans and HFC Bank (Ghana), a member of the African Union for Housing Finance, are leading mortgage market development, providing a sound foundation when the Ghanaian economy rebounds. With a good macroeconomic environment, sound policy, better data and increased access to affordable credit, an enabled housing market can increasingly provide housing that the average household in Ghana can afford.
Credit: CAHF-Centre for Affordable Housing Finance Africa