A mortgage is a method of using property as security for the payment of a debt. The term mortgage refers to the legal device used for this purpose, but it is also commonly used to refer to the debt secured by the mortgage, the mortgage loan.
In most jurisdictions mortgages are strongly associated with loans secured on real estate rather than other property (such as ships) and in some cases only land may be mortgaged. Arranging a mortgage is seen as the standard method by which individuals and businesses can purchase residential and commercial real estate without the need to pay the full value immediately.
In many countries it is normal for home purchases to be funded by a mortgage. In countries where the demand for home ownership is highest, strong domestic markets have developed, notably in Spain, the United Kingdom and the United States.

In Ghana, prospective applicants can in general borrow up to three times the annual earnings. Mortgage monthly repayments must be no more than 40% of verifiable income.

• The Loan term is normally between 15 to 20 years
• Annual Interest Rate is around 12% p.a. (subject to status)
• Deposit required is at least 25% of property value

APPLICATION PROCESS

Prospective borrowers are required to complete an application form and provide the following (this will differ from Lenders):

• 2 recent passport pictures
• Proof of Identity – Passport and or Full Driving License
• Proof of Address – 2 different Utility bills / Tenancy agreement
• Last three  pay slips
• Copy of latest bank statement showing address and phone number (if applicable) of the applicant
• Statement of existing mortgage loan (if any)
• Copy of Life Insurance Policy (if any)
• Credit Report (if available)
• Offer letter of sale and purchase agreement (if applicable)
• Processing fee (around $200 or its equivalent in Ghana Cedis)

CLOSING COSTS

• Legal / Property Title Search Fee       $150
• Surveyor fee                                   $300
• Facility fee                                      1% of loan
• Mortgage Agreement & Indenture
• stamping& registration
• Fees (stamp duty etc.)                     Approx 1.85% of property value

• Refundable Deposit (if applicable)        Equivalent to 3 months loan repayment
• Life /Mortgage Insurance Policy           Depends on Applicants circumstances
• Property Insurance Policy                   Around 0.2% of property value p.a.

There is the possibility of adding some or all of the above costs to the amount being borrowed, subject to status.
Current Mortgage Lenders are:

• HFC Bank Ltd
• Ghana Home Loans
• Barclays Bank Ltd.
• Fidelity Bank Ltd.
• Ecobank Ltd.

The above is just a guide. Requirements, costs and interest rates may differ from figures stated above. Your home may be repossessed if you do not keep up repayments on your mortgage.

Quality Developments Property Ltd © 2008   Privacy Policy