Business News Mon, 27 Jun 2022

FLASHBACK: Not every Ghanaian qualifies for a mortgage - Addo-Kufuor

Reports have shown that Ghanaians would rather build their houses from scratch rather than buy mortgages.

However, Chief Operating Officer of Ghana Home Loans Ltd, Kojo Addo-Kufuor said everyone in Ghana does not qualify for a mortgage, explaining that the expensive nature of homes has discouraged people from applying for mortgages.

According to him, there are affordable home options that individuals can choose from in Ghana.

Read the full story originally published on June 27,2017 by GhanaWeb

The Chief Operating Officer of Ghana Home Loans Ltd, Kojo Addo-Kufuor has advised that not everybody in this country qualifies for a mortgage.

He said the kind of house that one looks to buy determines how much that individual may need as a mortgage and that has created the perception that mortgages are expensive although he admitted to the fact that not everyone can acquire the facility.

According to him, their target as a company is to see mortgages grow to about 10% of GDP which is about 4 billion dollars yet it is trailing far below the stated amount although lots of efforts have been put into growing it.

Addo-Kufuor says that a mortgage is mostly not an option for a majority of Ghanaians when home ownership comes into mind.

According to him, Ghanaians will prefer to purchase their land and gradually develop it themselves till completion. This he attributed to the system in Ghana unlike elsewhere, where the system requires that when you are building, you are building to completion.

The Chief Operating Officer cleared the misconception about the loan by Ghana Home Loans not being affordable. Most people quote amounts that hit their bank accounts as their earnings when applying for a mortgage yet they might be earning other incomes, allowances, bonuses, and commissions which also form part of their earnings.

“If Ghanaians are to account for both their formal and informal income as part of their earnings, a lot more people might qualify for mortgages” he added.
Source: www.ghanaweb.com
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