President Akufo-Addo has commissioned 204 affordable housing units constructed under the the National Mortgage Scheme (NMS) and the Affordable Housing Real Estate Investment Trusts (REITs) (Rent-to-own) Scheme at Tema Community 22.
The commissioning of the housing units by the president follows the successful 2-year piloting phase of the two housing schemes.
Addressing persons present at the commissioning, the president reiterated the commitment of his administration to finding a permanent solution to house ownership challenges faced by average Ghanaians.
He noted that his Government will use the REIT scheme to revive the affordable housing concept and complete many of the abandoned housing projects started by previous Governments thereby providing affordable housing to many low-income Ghanaians who are unable to own homes.
The National Housing and Mortgage Fund (NHMF) was set up to pilot two schemes; the National Mortgage Scheme (NMS) and the Affordable Housing Real Estate Investment Trusts (REITs) (Rent-to-own) Scheme.
Under the National Mortgage Scheme NMS), mortgages are being underwritten at rates of 10 per cent -12 per cent by the participating banks namely, GCB Bank Limited, Stanbic Bank Ghana Limited and Republic Bank Ghana Limited.
This intervention has reduced mortgage rates by over 60 per cent, compared to the average market rate of 28 per cent.
The Affordable Housing REITs is promoting the rent-to-own scheme with only monthly rent payments and after a period, the occupant has the option to own it.
The rent-to-own scheme will eliminate the burdened two (2)-year rent advance system. This is designed to give low income workers the opportunity to rent and eventually own homes.
