Falling interest rates create opportunity to expand mortgage access - SHC

Managing Director of State Housing Company Limited (SHC), John Bawah, has pointed out that the recent decline in interest rates presents an opportunity to expand access to mortgage financing for Ghanaians seeking to build or purchase homes.

According to him, the changing interest-rate environment, coupled with the increasing willingness of financial institutions to provide long-term financing, could help improve access to housing and support efforts to address Ghana’s housing deficit.

Bawah made the remarks on Wednesday, August 19, 2026, when SHC signed a Memorandum of Understanding (MoU) with Absa Bank Ghana to strengthen collaboration in housing finance.

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He said SHC would work with Absa to develop mortgage products tailored to the needs of prospective homeowners and make it easier for more people to access suitable housing.

Bawah said the willingness of financial institutions to take greater risks in providing long-term financing was an important development for the housing sector.

He noted that addressing Ghana’s estimated 1.8 million housing deficit would require sustained collaboration among housing developers, financial institutions and other stakeholders.

“This is a very big number,” he said, stressing that closing the gap would require significant financial resources, time and sustained effort.

He said partnerships between housing developers and financial institutions could help gradually reduce the deficit by improving access to mortgage financing.

Managing Director of Absa Bank Ghana, Dr Edward Nartey Botchway, said the partnership formed part of the bank’s commitment to supporting efforts to address Ghana’s housing deficit.

He said combining the strengths of SHC and Absa could create new opportunities for the housing sector and improve access to home financing.

Botchway said the timing of the partnership was particularly important because the decline in interest rates had made mortgage financing relatively more feasible for customers seeking to build or purchase homes.

Lower interest rates can reduce the cost of long-term borrowing, potentially making monthly mortgage repayments more affordable and enabling more households to qualify for home financing.