Government has announced an ambitious plan to establish a GH¢1 billion mortgage and housing finance to leverage private capital provide affordable houses for the populace.
The fund aims to expand access to housing and deepen the local mortgage and construction finance market to help bring down the housing deficit, which is estimated at 1.7 million units.
The plan was announced in the 2019 Budget Statement and Economic Policy presented by the Finance Minister, Mr Ken Ofori-Atta.
When operational, the minister explained that a minimum of GH¢100 million will be seeded every fiscal year over to support private sector provisioning of houses.
The mortgage and housing finance fund followed the phased implementation of a Mortgage and Housing Finance Market Scheme announced in the 2018 budget.
Under the pilot phase, the minister said some GH¢40 million was released as leverage funds for additional private sector funds of GH¢40 million pensions, insurance and collective investment schemes through selected commercial banks.
“Mr. Speaker, a vibrant mortgage and housing finance ecosystem is key for social equity, economic development and job creation,” he said.