Owning property in Ghana is no longer reserved for the elite. With the right financial planning and knowledge of available options, you can secure your dream home or investment property with ease. For today and this week, we explore two financing options, their benefits, and real-life applications to help you make informed decisions.
- Mortgages – Secure Long-Term Financing
Overview: A mortgage is a loan from a financial institution that allows you to purchase a property and pay back over an agreed period, usually 10 to 25 years. Ghana has seen significant growth in mortgage availability, making it easier for residents and expatriates to finance their homes.
Example:
Stanbic Bank Ghana offers home loans with repayment terms up to 20 years, covering up to 80% of the property’s cost. If a property costs $100,000, you may need to pay an upfront 20% ($20,000) and spread the remaining $80,000 over 15-20 years.
Republic Bank provides diaspora mortgages for Ghanaians or expats living abroad, allowing them to invest in homes back home while making payments from their overseas income.
Key Benefits:
- Lower initial capital required (down payment instead of full payment).
- Spread payments over many years, making homeownership manageable.
- Some banks allow repayment in USD or GHS, depending on your preference.
Considerations:
- Interest rates in Ghana are relatively high, averaging between 15-30% per annum.
- A stable income and a good credit history improves mortgage approval chances.
- Developer Payment Plans – Flexible and Interest-Free
Overview: Many real estate developers, including Afrimart Atlantic, offer installment-based payment plans to help buyers finance their homes without going through banks. These plans usually require an initial deposit, followed by structured payments over a defined period.
Example:
Afrimart Atlantic’s Payment Plan for Solara Residence:
- 20% initial deposit upon reservation.
- Spread remaining balance over 12 to 24 months at zero interest.
Key Benefits:
- No interest fees, unlike bank mortgages
- Faster approval process since you deal directly with the developer.
- Flexible terms : some developers allow customized payment schedules.
Considerations:
- Shorter payment periods (compared to mortgages).
- You may need to clear payments before taking full ownership.
Next week we will discuss diaspora investment programs and joint ventures to conclude on this topic. I hope you found some value with this week’s session.
Do have a blessed evening and a glorious weekend.
Warm Regards
Moses B. Arthur
CEO, Afrimart Atlantic Ltd
Your Partner In Building Tomorrow’s Homes
