GREDA pushes banks to offer 12% or less on mortgages

Ghana Real Estate Developers Association (GREDA) has proposed that the banking sector should lend at 12 percent or less when it comes to mortgages, so as to enable Ghanaians afford the low-cost houses provided by real estate developers.

President of GREDA, Patrick Ebo Bonful said: “I challenge the banking industry to offer an affordable cedi mortgage of 12 percent or less, to enable the lower and middle classes afford the affordable houses that GREDA is providing,” he said.

Speaking at the launch of Lakeside Estate’s new Super Affordable Flats (SAF) in Accra, Mr. Bonful noted that the housing deficit keeps increasing year-on-year – with the biggest challenge being how to provide affordable housing to the lower and middle classes.

“GREDA is the leader and pioneer in affordable housing in Ghana and West Africa. The challenge is that income levels are quite low, and inadequate for many applicants of home mortgage finance to qualify for a reasonable amount of mortgage loan. The other challenge is the high cedis home mortgage interest rate of 27 percent per annum, while that of the dollar home mortgage loan is 15 percent per annum,” he said.

In addition, he stated that the tenor of the home mortgage facilities tends to be relatively short, which range between 10 to 15 years. “However, the situation we find ourselves in today will require a home mortgage finance minimum tenor of 15 years to 30 years.”

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Speaking to the theme ‘Affordable housing and home mortgage financing in Ghana’, he emphasised that the provision of affordable residential housing is as essential as the provision of home mortgage financing for same.

More on Lakeside Estate SAF project

The Lakeside Estate SAF project is a two-storey building comprising six apartments of two bedrooms each, with a living room, kitchen and balcony, designed for the lower and middle class.

Managing Director, Lakeside Estate and member of GREDA, Salah Kweku Kalmoni, in his address at the launch stated that the building has the latest Green Technology features.

“The SAF has six top green features incorporated that will reduce climate change and energy usage – which include a 250W Solar Inverter System, insulated roof, insulated and light superstructure, roof-water collection and LED lighting,” he said.

Cost and time saving are two of the most important considerations in the building construction industry; in order to achieve these two components and provide affordable housing, the Concrete Wall System (CWS) was used in constructing the SAF.

Construction with CWS holds several benefits: including extremely strong structures, environmentally friendly and clean method of construction, ensures lower sound emission from activities in a building, and improved comfort with minimal air-leakage.

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