Understanding the 3 Main Pathways to Homeownership in Ghana
The average Ghanaian worker has three pathway options in the homeownership journey.
- Self Build
- Mortgage
- Outright Purchase
For many Ghanaians, the homeownership journey starts when they receive their first salary/cheque.
Bank financed options to achieve homeownership remain limited due to low incomes and high mortgage costs.
Mortgages from commercial banks are sometimes priced in dollars making it unaffordable for low and middle income earners.
Additionally, interest rates on cedi denominated mortgages from commercial banks range from 19.00% – 31.7%.
The majority of the people within the low and middle income bracket would not qualify for a mortgage even if they wanted that option for achieving homeownership.
Issues with high interest rates and unaffordability of mortgages leave potential homeowners with no choice than to buy lands and self build their homes incrementally, which in most cases, can take anywhere between 5 to 10 years or in some cases an entire working life.
