The Ultimate Guide To Buy A House In Ghana And Pay Monthly

So, you've finally decided to buy a home in Ghana and pay monthly. But where do you even begin? The amount of money you have to spend, the area you want to buy in, and the person you should engage in handling the transaction are just a few of the numerous things that will influence your choice.

This guide will walk you through the buy and pay-in instalments in Ghana and provide you with resources you can use to help you make an informed decision that is best for you. To make the information easier to understand, this guide will follow the natural progression of a real estate transaction.

How to buy a home in Ghana and make monthly payments

There are two ways for home buyers in Ghana to buy a house and make monthly payments. They are mortgage financing conditions and self-financing terms. Each of these two methods has separate requirements and conditions. You'll be able to find cheap houses for sale in ghana with the option to buy and pay in instalments.

1. Mortgage financing condition

The very first method to buy a house and pay monthly is to apply for a mortgage loan from a recognized mortgage lender and then get a pre-approved mortgage for the home purchase. If you've never done this process before, read our step-by-step mortgage guide for the necessary documentation and requirements in Ghana.

In Ghana, there are a variety of mortgage homes available for purchase, each with special benefits and features. It's crucial to weigh your options before choosing one in order to get the one that best meets your requirements and capital.

Related: Best Mortgage Houses For Sale In Ghana 2022

2. Self-financing terms

The second method to buy a house in Ghana and pay monthly is through self-financing arrangements. In this arrangement, you don't need a mortgage for the purchase. However, you will be required to pay the cost of the house within 6, 12, or 18 months.

You'll be required to sign the sales and purchase agreement when the initial 20% payment is made. While the property will be handed over to you after full payments have been made.

The Oxford at Appolonia City offers this unique homebuyer package to Ghanaian purchasers so they can have a place to live while they work and pay their mortgages. Below are the payment plans:

• 6 Months – 40% 40% 20%
• 12 Months – 20% 40% 40%
•  18 Months – 20% 15% 15% 15% 15% 20%

The packages provide flexible payment options for buying property. The steps listed below must be taken in order to purchase a home in Ghana and make monthly payments with Oxford at Appolonia City.

• Arrange a visit to The Oxford with a Sales and Marketing Executive (optional)
• Fill out and submit an application form with the selection of a preferred house type
• Receive an offer letter from the sales team within 48 hours
• Pay a non-refundable committal fee of USD 5,000. (The committal fee is part of the total price of the house)
• Sign the offer letter and submit
• Sign the sales and purchase agreement when the initial 20% payment is made.
• Property handed over after full payments have been made

The Pros and Cons of paying monthly for a property in Ghana

Many people in Ghana aspire to own their own homes. But the majority of us will need to obtain a mortgage in order to purchase a home. Or the possibility of having to live in rented housing for the foreseeable future.

Here are some advantages and disadvantages to consider before applying for a mortgage.

Pros

Cons 

Related: The Best Mortgage Lenders For First-Time Homebuyers in Ghana

Factors to consider when buying a house in Ghana

How much you can spend on a property depends on a number of important factors. Buying a house in Ghana and paying monthly obviously means you'll be financing the purchase with a mortgage.

Think about the following before you begin your home search.

What can you afford?

The choice to buy a house is based on a variety of factors. Most homebuyers think about their budget as their first priority. House buyers often think about the chosen neighborhood they want to buy into as their second priority, and then consider which experts to hire to execute their plan. 

It's very important to avoid speculating. Consult a mortgage bank for a realistic amount to work with, and see a certified broker or your financial institution to help you with the process to buy a house in Ghana and pay monthly.

Decide where and what to purchase

You're most likely to already know which neighborhoods appeal to you if you reside in the city you plan to buy a house and pay monthly. You may need to conduct some detailed research if you reside in another country to make sure you are aware of the benefits and drawbacks.

It's perfect to have a favorite or target neighborhood, but you should also be flexible and open to looking at nearby or comparable neighborhoods. This way you will have an idea of how much similar houses in different locations are selling.

Get help from a professional

Finding real estate professionals who have extensive industry knowledge and can guide you through challenging circumstances in the home-buying process should be the best thing to do as a first-time home buyer.

There are many different lenders and borrowers that mortgage brokers work with. Mortgage brokers can help you identify solutions that best suit your purchasing clients by submitting applications to several lenders.

For instance, mortgage brokers, as opposed to banks and credit unions, can examine the products of numerous organizations and discover their buying clients' various solutions to suit their needs.

How much down payment do you have?

The down payment that you must give to the lending institution is typically between 5% and 10% of the home's purchasing price. The rules of lending institutions may occasionally change. 

Generally speaking, in order to lower your monthly mortgage payments, you should put as much cash down as you can. The more money you put down, the less financing is required. Your down payment includes your deposit for the real estate transaction.

Get pre-approved for a mortgage

Without a pre-approval, it can be difficult to determine the exact amount that a lender will loan on a property. One option to learn more about the amount of money a lender is willing to loan you is to seek pre-approval.

Your lender will take into account your income-to-debt ratio in addition to a number of other variables to determine how much they think you can pay. Your income-to-debt ratio shows how much money you make now compared to how much debt you have.

Understand the types of ownership 

When buying a property to reside in Ghana, there are a number of title structures in the country that you need to study and understand.  There are three basic land titles in Ghana, freehold, leasehold, and allodial titles.

A freehold interest is a more precise term for what we ordinarily refer to as “ownership” of a home in Ghana. The owner of the freehold interest has full use and control of the land and the buildings on it, subject to any rights or restrictions in place at the time of purchase. This type of ownership has no end date and it goes in perpetuity.

Leasehold interests are short-term titles and commonly granted for terms of 99 years, but regardless of the length of the original term, you will only be able to purchase the remaining term. This type of ownership is used most often for townhouses and or apartments built on city-owned land.