One kind of financing that is expressly used to buy property or real estate is a mortgage. In a mortgage arrangement, a lender (usually a bank or mortgage lender) gives the borrower, or the person or entity purchasing the property, a specific sum of money in exchange for purchasing the property. After that, the borrower commits to repaying the loan balance plus interest over a predetermined time frame, typically between 15 and 20 years. Mortgage can also be called to as “Home Buying Loan” in a very simple term.
Does Mortgage comes with a collateral?
Mortgage does not require other external collateral, rather, the property that is at the center of the transaction is used as the collateral for the loan, the lender has the right to foreclose on it and sell it to recoup the outstanding sum in the event that the borrower defaults on the mortgage.
The maximum tenure for our home purchase mortgage is
- 20 years for Cedi mortgages
- 15 years for Dollar mortgages with a minimum tenure of 5 years for both.
Applied a rate:
- 15% per annum to Dollar mortgages
- 25% per annum for Cedi mortgages.
Who Can Qualify for a mortgage?
Any individual or group of individuals in the case of joint application can qualify base on their income levels. This means the maximum loan amount an individual qualifies for is dependent on the net income using a debt service ratio of 40% and the number of years you apply for. Also the number of yours left for you in active employment also counts.
Kindly note that a joint application with a spouse or close relative can be considered and also the applicant need not have to be physically present to complete the application process.
Some Banks that offer mortgage in Ghana?
First National Bank: Documents and basic needed to apply for mortgage
- Copy of your valid identity document (ID)*
- Latest 3 months bank statement*
- Latest 6 months bank statement (if not banking with First National Bank Ghana)
- Introduction letter from employer if employed
- Marriage certificate (if applicable)
- Details of the property you are buying (duly signed Offer to Purchase)
*For you and your co-applicant (where applicable)
Republic Bank: Documents and basic needed to apply for mortgage
- Copy of your valid identity document (ID)*
- 20% Deposit of the amount your are applying for
- Latest 3 months bank statement*
- Latest 6 months bank statement (if not banking with First National Bank Ghana)
- Introduction letter from employer if employed
- Marriage certificate (if applicable)
- Details of the property you are buying (duly signed Offer to Purchase)
*For you and your co-applicant (where applicable)
