Republic Bank targets affordable home ownership through JoyNews Habitat Fair

Republic Bank Ghana is leveraging the JoyNews Habitat Fair as a way to increase access to mortgage financing and assist more Ghanaians, especially low- and middle-income earners, in achieving home ownership. The bank, the title sponsor of the fair, has crafted mortgage products to accommodate various income brackets. Frank Oppong Yeboah, the Manager in Charge of Mortgage at Republic Bank, explains that the bank's offerings are intended to make home ownership attainable for people who cannot immediately afford a fully built house.

Yeboah indicates that individuals earning around GH¢3,000 can explore mortgage financing to first acquire land and subsequently obtain construction financing after their loan balance decreases. For instance, if someone has a loan balance of GH¢3,000, the bank can grant a loan up to GH¢170,000. Republic Bank is also collaborating with the government of Ghana to offer a mortgage rate of approximately 8.5 percent, specifically targeted at those with lower incomes.

The bank promotes an incremental construction approach, enabling homeowners to start with what they can afford and expand as their income increases. This strategy allows for stress-free building, where individuals "cut their coat according to their size" to acquire what they need for themselves and their families. Yeboah also highlights that the bank's mortgage structure offers borrowers repayment certainty, with the interest rate remaining constant once the facility is secured. This contrasts with renting, where upfront payments can quickly deplete one's resources.

Republic Bank's involvement in the JoyNews Habitat Fair offers a platform for prospective homeowners to engage directly with the bank regarding mortgage options, financing requirements, and the steps necessary to own or build a home. The fair is anticipated to gather key figures from the housing and property sectors, connecting prospective homeowners with necessary financing, housing solutions, and other services essential for making home ownership more feasible.