National Housing Fund cuts mortgage rate to 8.4% to expand access to homeownership
The National Housing Fund (NHF) has reduced the interest rate under its National Mortgage Scheme from 13.5 per cent to 8.4 per cent, opening up opportunities for prospective homeowners who previously struggled to qualify for financing.
The National Housing Fund (NHF) has lowered its mortgage interest rate from 13.5% to 8.4%, aiming to increase access to homeownership. NHF CEO Prosper Hoetu announced the reduction during the opening of the National Conference on Housing Finance in Accra. This change enables more people, such as civil servants and market traders, to purchase homes despite financial barriers.
The lower rate applies to both homeowner and developer financing. Hoetu attributes the lower rate to efficient economic management and a collaboration between the NHF and financial institutions. He emphasized the need for more pathways to homeownership, as 60% of those in need of financial assistance to buy homes face obstacles in the current system.
He also highlighted that Ghana's mortgage penetration is among the lowest in Africa, at just 0.3% of its GDP. To address this, Hoetu proposed alternative arrangements like rent-to-own options and using pension contributions for homeownership. The NHF has also created a platform to connect housing demand and supply, which will be presented at the conference.
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