A loan is giving out money, property, or any other material to another in exchange for repayment in the future of loan value with interest. A home loan is securing a money loan from a financial institution to buy a house or secure a residential property.
In this article, we take a look at the list of home loans in Ghana. Are you worried about that dream house you want to get for your family but you don’t have enough money. This write-up will enlighten you on how to secure a loan for that dream apartment you want.
Before going for a home loan, you should compare loans offered by different banks and lending institutions. While comparing, consider the interest rate, Loan-to-Value (LTV) ratio, processing fees, and tenure offered by the bank.
Use a home loan EMI calculator and calculate your EMI based on these factors. Compare multiple home loan products by various banks by using this method. You can go through the above list to get an idea regarding which bank’s home loan would suit your requirement.
LIST OF HOME LOANS IN GHANA
1. Stanbic Bank
Stanbic bank is one of the well-known commercial banks in Ghana. The facility fee is 2% with loan repayments being between 5 to 20 years to repay. In addition, there is no limit to the amount you wish to acquire. Acquiring a home loan may depend on your income as well.
Stanbic bank gives you the flexibility of repaying the loan at a pace you may be comfortable with. Stanbic Bank also has 6 home loan products.
- Home Purchase – This is primarily meant for the immediate purchase of completed homes.
- Developer Construction – This is perfect for individuals who are yet to complete their homes from Stanbic Banks’ preferred developers.
- Equity release – With the equity release you can take a loan and use the cash released for a variety of personal needs, including the purchase of another home or prime land, business expansion, or funding education.
- Employer Group Mortgage Scheme – Developer-based home construction on your land bought under organization block lands schemes.
- Home Improvement – This plan allows you to renovate, remodel or expand your current home.
- Refinancing – The refinancing mortgage is in 3 forms:
- Internal refinancing – Internal refinancing allows you to arrange new financing terms such as the term of your existing Stanbic Home Loan, currency, and amount.
- External Refinancing – Financing is provided to help take over existing home loans from other banks.
- Cash Refinancing – This process gives you access to extra money if the value of your property has appreciated over the years.
Stanbic Bank can be contacted on +233 302 815 789 / 080 010 009
Absa promises to give you a more convenient, easier, and faster means of receiving a mortgage. Absa helps you to own a home, borrow against a home you own, even give your current abode an upgrade or help you take over your home loan from another financial institution. They offer up to 90% finance for home purchase and up to 70% for equity release and home improvement. With Absa, your property should be located within Accra, Kumasi, and its environs.
REQUIREMENT FOR ABSA HOME LOAN
- Your current payslip and a form of identification.
- An offer of sale from a vendor
- Land title certificate
- Deed of assignment
- Site plan
- Building permit
- Ground rent
- Consent to a mortgage for leasehold (if applicable)
- Sale and purchase agreement
For more information, do contact Absa via email at [email protected] or 0800 222333 (Toll Free) / +233 (30) 2429150 (charges apply)
3. Cal Bank
Cal Bank seeks to assist clients to gain access to home loans to purchase a home of their choice. The Cal Bank Mortgage has been designed to meet your present home loan needs. You are to be between the ages of 21 to 55 to be eligible for a mortgage from Cal Bank. It is required that you fill the Mortgage form from Cal Bank and follow the procedures detailed out.
REQUIREMENT TO ACQUIRE HOME LOAN FROM CAL BANK
- A completed and signed mortgage application from Cal Bank.
- An offer letter from the Real Estate Developer
- A form of identification
- Income verification
- Credit History
- Property documents
- Down Payment
- Disbursement Conditions ( Pre and Post)
- Security: personal guarantee of the applicant.
You can contact Cal Bank on +233 800 500 500 or email [email protected] for more information.
4. Republic Bank
Republic bank aims to support both companies and individuals to acquire residential property for investment or private purposes. The maximum amount of loan a person can take depends on the client’s credit profile. You will need to make a down payment of 20% and the maximum term is 20 years. There is also a processing fee, which is 1.5% of the proposed loan if you are Ghanaian and USD250 /GBP150 if you are a non-resident Ghanaian.
REQUIREMENT TO ACQUIRE HOME LOANS FOR REPUBLIC BANK
- A completed Republic Bank Mortgage form
- Processing fee
- A form of identification ( passport, national ID), a passport picture, a personal reference form power of attorney.
NB: Republic Bank may also ask for proof of relationship if it is a joint application.
Republic Bank has about 6 mortgage packages for individuals and companies. They are as follows:
- Home purchase mortgage: This form of mortgage is designed for individuals or companies to purchase a property for personal use or investment purposes. The minimum down payment one can make is 20%. The maximum mortgage tenure is 20 years for resident Ghanaians and 15 years for non-resident Ghanaians. The processing fee for resident Ghanaians is 1.5% of the proposed loan and USD 250 for non-resident Ghanaians. Non-resident Ghanaians may also need to pay the facility fee which is 1% of the proposed loan.
- Home equity mortgage: The home equity mortgage enables applicants who own homes or may have already invested in residential properties to take out or release the equity in those properties to build another property or renovate a property. This product is suitable for existing homeowners and companies with properties. Republic bank states that the mortgage loans shall not exceed a maximum of 80% of the forced sale value (FSV) of the property. The maximum term for the facility is 15 years for both cedi and foreign currency loans.
- Buy, Build and Own a Home: This type of mortgage package is designed for low-income individuals who can only own their own home by acquiring land and developing it over time.
This mortgage product entails two main features. The “Buy” land portion and the “Build and Own” portion. Beneficiaries will contribute 10% of the cost of the land. The maximum amount for the “Buy” portion of the loan is USD15, 000 or the cedi equivalent.
After 50% payment has been made on the initial loan, the customer qualifies for the “Build and Own” portion of the product. The customer selects one out of six designs from the Bank to construct a house. The selection of the house is done at the time of the initial loan application for the “Buy” land portion. The maximum loan amount for the “Build and Own” (Construction) is USD35, 000 or the cedi equivalent.
- Home Completion Mortgage: The Republic Bank Home Completion Mortgage aids individuals to complete the construction of their houses. The amount required from Republic Bank to complete the house must fall within the maximum loan. More than 50% of the total cost of construction of the property can not be requested for a loan, and the property must have reached at least the lintel level.
- Public sector home scheme: In the 2007 budget, the Government of Ghana mandated Republic Bank to provide an affordable homeownership scheme for public sector employees. All applications for the affordable homeownership scheme will be evaluated by Republic Bank’s eligibility and credit criteria.
Republic bank can be contacted on +233 302 429 555 / +233 302 258 106 / +233 302 242 093
5. First National Bank
First National Bank, now merged with Ghana Home Loans, provides its services in different forms when it comes to mortgages in Ghana. The home purchase mortgage includes the following:
Types of mortgages at First National Bank:
- Home Construction Mortgage is given to individuals who need a loan to build their homes.
- The land purchase mortgage from First National Bank helps you own land.
- The Home Owners Mortgage is also available for homeowners who wish to borrow for a longer period and use their home as collateral.
- The Save-to-Own is perfect for young individuals who may now be starting or self-employed individuals who may not have a steady flow of income but wish to own a home.
- First National Bank offers various packages under the home purchase mortgage and they are as follows:
- First-time buyer – If you are a first-time buyer, First National Bank offers this service exclusively to individuals who have never purchased a home before.
- Buy-to-let – Interested in buying another property to rent? Allow First National Bank to help you with the process. They offer to buy to let services where you can buy another property for investment and rent it out to tenants.
- 100% Purchase – This is similar to the first-time buyer package. If you are a Ghanaian and wish to purchase your first home, you can apply for a 100% loan from First National Bank to purchase the property if you cannot raise the minimum deposit.
- Home Purchase Loan – The Home Purchase Loan enables homeowners to purchase an additional home.
NB: Mortgage rates for these banks differ from bank to bank.
You can contact First National Bank on 024 243 5052 / 024 243 5057
6. Ecobank Ghana
Ecobank has a mortgage calculator available on its website to help you know how much you can pay periodically. Acquiring a mortgage in Ghana from Ecobank is quite simple. You can walk into their office at any of their local branches and request a mortgage form.