Mortgage Information For Ghana

It is possible for anyone in Ghana to obtain a mortgage loan, as long as they meet and can present the requirements stated below.

Type of mortgage:

1. First time buyer
2. Buy to let
3. Equity release
4. Refinance
5. Home Completion

Availability to:

1. Residents
2. Non-resident Ghanaians
3. Non-Ghanaian residents

Mortgage providers:

1. Home Loan Ghana
2. Home Finance Company (HFC)
3. Barclays Bank
4. Eco Bank
5. Uni Credit
6. Prudential Bank
7. Fidelity
8. UBA

Mortgage Calculators:

1. HFC - http://www.hfcbankgh.com/newsite/usefultools/mortgagecalculator.php
2. Ghana home loan

Requirements:

1. Proof of Identity: Passport/Driver’s License
2. Proof of Income: Latest 3 months official payslips or on company headed paper, with employer’s details for verification. For self-employed applicants, tax return forms for 3 financial year periods must be provided.
3. Proof of employment: Letter from employer confirming status of employment. For self employed applicants, certified statement of income is required.
4. Proof of address: Rental agreement, Bank statements, Utility Bills etc.
5. Processing Fee: from 1.5%
6. Facility Fee: from 1%
7. Maximum Loan: from 80-85% of property value
8. Mortgage Term Repayment : 10-20 years
9. Minimum Deposit: 10-25% of property value
10. Statutory Deposit: Varies
11. Interest rates: from 12.5% (Fixed or Variable)

Standard documents required:

1. Passport photos
2. Proof of identity: Passport/Driver’s license
3. Proof of address: 2 different and recent documents as proof of address (utility bills, tenancy agreements etc.)
4. Latest 3 months payslips
5. Latest 3 months bank statements
6. Sales and Purchase Agreement/Offer letter – signed by property owner/estate developer and prospective borrower.
7. Processing fee
8. 12 months business bank statements from all accounts (self-employed)
9. 3 years financial statement/tax return form for self employed or foreign applicants
10. Certificate of incorporation and certificate to commence business
11. Power of attorney form (for foreign applicants)
12. Existing mortgage loan statement (if applicable)
13. Statement of exiting life insurance (if applicable)
14. A valuation report of the prospective home. This can be deferred until an ‘Approval in Principle’ has been granted to the prospective borrower.

Eligibility:

1. Prospective borrower must be between 18-65 years of age.
2. Prospective applicant over the age of 55 must be in the position to secure 15 years life insurance cover before making the application.
3. Credit check will be conducted and must be satisfied by the Mortgage Lenders before any mortgage may be granted.
4. A deposit of 10-25% of the property value of which evidence of this amount might be required at the time of application.
5. Applicants must be capable of paying their mortgage, ideally not exceeding 40% of their gross income or 60% of the gross income for applicants with other existing loans.
6. Applicants must be able to demonstrate income security in the form of employment or satisfactory evidence on the ability to sustain the declared level of income. You have to provide evidence of employment for a period of at least three years. Proof of employment will be in the form of employment contract, tax returns and payslips. For self-employed applicants, income statement prepared by a qualified accountant will be required.
7. Mortgage can be secured on both freehold and leasehold properties. For a leasehold property, most mortgage lenders would require the remaining lease term to be at least 10 years in addition to the agreed mortgage duration.
8. A valuation report prepared by a qualified surveyor and dated no earlier than three months prior to the application. Once a decision has been made to purchase the property, the purchaser should contract the services of approved surveyor to prepare Valuation Report of the property on his/her behalf.
9. Depending on the Mortgage Lender, life insurance coverage might be required as additional security in the event of death.
10. Non-resident or foreign applicants are strongly advised to execute a Power of Attorney authorising an individual resident in Ghana to act on their behalf. The individual (not necessarily a lawyer) appointed must be at least 18 years of age.