Three banks – Republic Bank, Stanbic Bank and Ghana Commercial Bank – have pledged continuous financing support to the National Housing Mortgage and Affordable Housing Real Estate Investment Trusts Schemes.
Representatives of the three banks made the pledge at the official commissioning of some 204 housing units by President Akufo-Addo at Tema Community 22 in Accra on Monday.
The provision of the housing units falls under two schemes developed by Government to resolve home ownership challenges faced by Ghanaians as well as significantly reduce the nation’s housing deficit in the long term.
Speaking at the event, was Managing Director of the Republic Bank, Farid Antar, who applauded President Akufo-Addo for the introduction of the schemes.
“Without Government intervention, affordable housing in the country will remain a dream, the partnership between banks, Government and developers to provide affordable housing in cedi denominated mortgages at highly subsidized and affordable rates to Ghanaians, is phenomenal and will reduce the growing housing deficit in country,” he stated.
“Thank you Mr President, for the knowledge and vision in establishing the National Housing Mortgage Scheme. We remain committed to playing our part in financing the scheme for the acquisition of houses in this and other similar developments,” he added.
Speaking also on behalf of GCB, was it’s acting Managing Director, Socrates Afram, who also pledged the bank’s commitment to supporting the REIT scheme.
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 -12 per cent by the participating banks namely, GCB Bank Limited, Stanbic Bank Ghana Limited and Republic Bank Ghana Limited.
The two schemes have 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 and is designed to give low income workers the opportunity to rent and eventually own homes.
The National Mortgage Scheme (NMS) is working with Republic Bank to procure 21 Blocks (150 Units) of the renovated Asokore Mampong Affordable Houses developed by SSNIT for the Ghana Medical Association (GMA) among others.
