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Lifestyle

Four Mortgage Tips to Help You Own a Home in Ghana

shutterstock_83671576If you’re considering settling down in Ghana, you might be considering purchasing a property of your own. I’ve come across some mortgage information from a *friend at Lamudi that may be of use to you as you prepare your move!

There are various ways you can own your own home, a mortgage is only one of them.

A mortgage occurs when an owner pledges their right to the property as collateral for a loan.

There are certain factors to be mindful of before considering taking out a mortgage.

The Property Search

Before obtaining a mortgage loan, you have to search for properties that match your preferences. In selecting that dream home, the offer price should be your key consideration. Comparing the price per square meter of each property is a good way to know if you’re getting value for money. This can be deduced by dividing the offer price by the total floor area. Other considerations are the location, quality of construction, size of rooms, plot size, availability of parking, proximity to your workplace, and access to public utilities. A number of platforms are available to assist you in finding the right home. You can choose from a real estate developer, get assistance from a real estate agent, or obtain a wide variety of property choices from real estate portals such as Lamudi.

Agree on Payment Terms

Find out the number of years left on the leases of the properties you have shortlisted. After making your final choice, negotiate the price and payment terms.

Do You Need Collateral?

When obtaining a home loan, you do not need to have an additional property as collateral. A mortgage essentially means that you are using a loan to buy a home, while using that same home as collateral for the loan. In Ghana, some lenders provide borrowers with mortgages for durations of up to 20 years. However, a mortgage provider will consider an individual’s ability to repay the loan, and other risks, before entering into an agreement.

Disbursement

After the mortgage has been approved, the mortgage lender proceeds to pay on your behalf. An agreed monthly deduction is made depending on the interest rate type. There are two main types: fixed and variable interest rates.

The fixed interest rate: enables a mortgage borrower to make monthly repayment amounts that do not change over the life of the loan. It is a good option if you believe that interest rates will increase significantly in the future.

The variable interest rate: may change from time to time depending on the volatility of a lender’s base rate. The base rate is determined by operational costs and the cost of funds. Additionally, a borrower’s risk is factored into the computation of an agreed interest rate. A variable interest rate is usually higher than a fixed interest rate.

Hope that information is useful. Happy house-hunting!

*This is not a sponsored post. It is actually information from a real friend at Lamudi. I hope it helped!

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About Combing for Curls

Ghanaian-Nigerian Accra-based natural hair blogger and vlogger. Creator/curator of African culture and political content.

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