The Best Mortgage Lenders For First-Time Homebuyers in Ghana

Purchasing a house is the biggest decision you'll probably make. So before you orchestrate your home loan, ensure you realise what you can stand to get. Make sure to discover the best home loan that will fit into your objective of becoming a homeowner.

First-time home buyers usually don't get pre-approved mortgages before looking at homes. Don't misinterpret pre-approved to mean pre-qualified because most of the time first-time homebuyers use these words interchangeably. 

The homebuyer should have the application made and credit pulled before they start looking at properties. The disappointment and frustration will really hurt your first-time experience so always try to get the correct things done and not guesstimate and hunt with confidence.

If you're a first-time homebuyer you're probably looking to buy a home for the first time. To do this you'll need to get a mortgage approved to facilitate the buying process. It's ok to feel nervous, frustrated and overwhelmed.

Thankfully, we have handpicked the best mortgage lenders in Ghana that you can rely on to own your first dream home.

General requirements for mortgage application in Ghana

 

To complete a mortgage application form you are mandated to provide the following supporting legal documents to a respective lender:

• Proof of income flow and employment status
• Proof of Identity – Passport, Drivers licence, Voters Identity Card
• Proof of Residence
• Offer letter from the developer 
• Property title documents (Deed of assignment)
• A Valuation Report from an approved Appraiser

Overview of the best mortgage lenders in Ghana

 

Now that the general requirements of submitting an application for a mortgage are known. Let us explore the best mortgage lenders that will help you actualise your dream of owning your first home in Ghana. Here we take a look at the best mortgage providers in the country to ensure the journey to your homeownership is made easy and hassle-free. 

Republic Bank

We like to call Republic Bank the home of mortgages because they offer varieties of opportunities to help you acquire a home. They offer opportunities to both homeowners and real estate investors who need huge and long term funding to achieve their goals. With Republic you have an 80% Loan-To-Value ratio making a downpayment of 20% and you have a maximum 20-year repayment plan. 

Republic Bank has 6 main mortgage packages; these include; Home purchase mortgage, Home equity mortgage, Buy, Build and Own a Home, Home Completion Mortgage, Public sector home scheme, and Home improvement mortgage. 

Below is the overview of Republic Bank Home Purchase Mortgage

                                                       Resident Ghanaians                          Non-Resident Ghanaians      

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 Maximum loan Amount        Subject to customer credit profile            Subject to customer credit profile

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 Minimum Down Payment                     20%                                                             20%

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 Maximum Term                                     20 years                                                       15 years

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 Process Fee                               1.5% of proposed loan                                       USD250 / GBP150

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 Facility Fee                                            Nil                                                   1% of proposed loan

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 Legal Fee                              1% property price for stamp duty      1% property price for stamp duty 

(Towards registration of     on the title, 0.5% of loan amount for             on the title, 0.5% of loan 

legal documentation)            stamp duty on mortgage deed and                amount for stamp duty on 

                                                 Ghc1,500 towards registration                    mortgage deed and Ghc1,500       

                                                on the title.                                                   towards registration on the. title   

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Absa Bank Ghana

You can't talk about mortgages without mentioning Absa Bank. This is because of the innovative lending processes Absa has introduced into the financial system. Absa bank offers up to 90 percent finance for home purchase and up to 70 percent for equity release and home improvement. 

This means that you have only 10 percent down payment to get your mortgage approved. With Absa you can get a maximum debt-service-ratio of 50 percent depending on your income and the value of the house you intend to buy. 

Absa offers a repayment term of 5-20years coupled with property insurance and credit life Insurance covering death, permanent disability and retrenchment.

First National Bank 

Whether you're a first-time buyer, buying to let or making a 100 percent purchase, First National Bank can help you get the best mortgage to own your own home. With the first-time home loan, the package is designed for those looking to purchase their first home and require the much-needed property acquisition due diligence. 

The most attractive aspect of FNB mortgages is that they are available to residents and non-residents and you can also get funds in GHS, USD or GBP and up to 20 years to service the home loan. 

To access this home loan all you need is to identify a house you wish to acquire, negotiate the terms of purchase with the vendor and obtain an offer letter for the property to qualify for your First-Time Buyer Loan.

As a first-time homebuyer, you can purchase your ideal home even if you are unable to raise the required minimum downpayment. First National Bank offers a 100 percent home purchase loan with an additional insurance policy of up to 30 percent of the purchase price of the property. 

Stanbic Bank

This is another low-stress destination for first-time homebuyers to get a great rate on a mortgage. Stanbic Bank offers you different loan options to choose from 6 different home loan products. You don't have to worry about the maximum loan amount you can get because it is totally dependent on your credit score. 

You can also choose to repay your loan at the pace you're comfortable with. The six different home loans Stanbic Bank offers include the following: Home Purchase, Refinancing, Equity Release, Home Improvement, Employer Group Mortgage Scheme, and Developer Construction.

Cal Bank

The purpose of the Cal Bank Mortgage is to ease individuals in their journey to acquire dream homes. Potential homeowners have the opportunity to access the loans to acquire their preferred homes. Before you apply for Cal Bank home loan you must be an income earner and aged between 21 and 55 years to qualify for the loan.

This mortgage is made to be a retail product tailored to meet the mortgage needs of every client. Be it Home Completion, Home Improvement and Equity Release, you have a chance of owning your home.

For Home Completion, the property should be at the lintel level in order to be considered and should be backed by a land Title Certificate. The home loan has a tenure of 5 to 15 years.