The Finance Ministry has said, the National Mortgage Scheme (NMS) launched by Government to resolve housing deficits in the country will reduce mortgage rates by 60 per cent, compared to the market rate of 28 per cent.
According to the Ministry, mortgages under the NMS, are being underwritten at rates of 10 per cent to 12 per cent by the participating banks – GCB Bank Limited, Stanbic Bank Ghana Limited and Republic Bank Ghana Limited.
Taking a tour and inspecting on-going renovation works at the Tema Development Corporation (TDC) affordable housing enclave and Adom City Estates in Tema Communities 26 and 25 respectively, the Finance Minister in the company of the Minister for Works and Housing, Samuel Atta-Akyea, during a media engagement noted that starting prices for houses built under the scheme are Ghs 140,000 and Ghs 90,000 for standard two-bedroom and one-bedroom respectively.
Two pilot schemes namely the National Mortgage Scheme (NMS) and the Affordable Housing Real Estate Investment Trusts (REITs) (Rent-to-own) Scheme have been set up by Government under the National Housing and Mortgage Fund (NHMF).
The NMS is to enable Ghanaians purchase buildings outright at affordable rates whereas the Affordable Housing REITs is to promote a rent-to-own scheme with only monthly rent payments and after a period, the occupant has the option to own the house.
The scheme is also to eliminate the burdened two (2)-year rent advance system.
Monthly rents under the initiative are Ghs 525 and Ghs 625 for standard two-bedroom and three-bedroom apartments respectively, compared to the market average price of Ghs 650 and Ghs 850.
Government will use this framework, the Affordable Housing REITs, to revive the affordable housing concept and complete many of the abandoned housing units across the country. The Affordable REITs will become the off-taker of the properties for the rent-to-own scheme,
Samuel Atta-Akyea, Minister for Works and Housing
