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15.10.2018 Business & Finance

Mortgage Interest Rate To Be Reduced By 20%

By Magdalene Teiko Larnyoh -
Mortgage Interest Rate To Be Reduced By 20%
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The Works and Housing Minister, Samuel Atta-Akyea has revealed that the government is preparing a Legislative Instrument which will enable more people to take up mortgage facilities with interest rate below 20 percent.

In an interview with Accra-based Citi FM, Mr Atta-Akyea said the LI will allow the government use parts of the pensions fund to support banks in the sale of affordable housing units to Ghanaians thereby reducing interest rate.

The country currently faces a housing deficit of 1.7millon. Commercial banks are charging between 25 and 35 per cent interests on mortgage loans. Analysts have described this figure as is too high for the ordinary Ghanaian.

Mr Atta-Akyea Akyea was optimistic that the new mortgage regime will ease the financial burden on Ghanaians.

'Some people have executive houses, but when you have a government of conscience and you want to minister to those who are handicapped in terms of low-income levels then you have to make things easier for everyone. We owe it to Ghana to roll out different forms of houses for the people. Houses that they can buy. So that the housing deficit of 1.7 million will be a thing of the past'.

Analysts in the housing industry have indicated that the government would have to build 190,000 to 200,000 units each year for the next 10 years to bridge the housing gap.

Meanwhile, Mr Atta-Akyea said that the government is in talks with some investors to develop container houses to accommodate the thousands of homeless Ghanaians.

'What kind of accommodation will you give people of that nature? Some countries have container housing and in that there are toilets that you can flash. There are investors who are ready to build such houses.'

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