National Housing Fund cuts mortgage rate to 8.4% to boost home ownership

The National Housing Fund (NHF) has reduced the interest rate under its National Mortgage Scheme from 13.5% to 8.4%, in a move aimed at making homeownership more accessible to Ghanaians.

Chief Executive Officer of the National Housing Fund, Prosper Hoetu, disclosed this at the opening of the maiden National Conference on Housing Finance in Accra on Wednesday, October 7, 2026.

According to Hoetu, the Fund resumed lending under the National Mortgage Scheme last month at the reduced rate, while financing for developers has also been reduced to 10.4%.

NHF expands affordable housing initiatives through strategic partnerships

He explained that the reduction was made possible through prudent management of the economy and a blended financing arrangement between the NHF and its partner financial institutions.

“Last month, the Fund resumed lending under the National Mortgage Scheme at an interest rate of 8.4 percent, down from 13.5 percent. Developer financing is now at 10.4 percent,” he said.

Hoetu said the response to the revised scheme had been encouraging, with the Fund receiving a significant number of applications from prospective homeowners who previously could not qualify for mortgages.

He additionally noted that Ghana’s housing challenge was, to a large extent, also a financing problem.

According to him, the country has one of the lowest levels of mortgage penetration in Africa, estimated at 0.3% of GDP, while about 90% of housing delivery takes place through incremental self-financing.

According to him, it takes an average of about 10 years for people to complete their houses, while the formal real estate sector currently delivers only about 10% of Ghana’s housing needs.

First single-digit mortgage rate in 30 years announced as NHF resumes lending at 8.4%

He said the situation made affordable and accessible housing finance critical to efforts to address the country’s housing deficit.

Hoetu further disclosed that the NHF had facilitated the development of a homebuyers database, described as a multisided platform designed to provide real-time information on housing demand and supply in Ghana.

The platform was expected to be showcased during the conference, with stakeholders invited to provide input on how it could be improved.

He said the initiative was part of efforts to address the issue of housing “offtake” and improve the connection between housing supply and potential buyers.

JHM/AM