Mortgage providers to increase repayment tenure from 20 to 40 years

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The Government of Ghana has started negotiations with mortgage providers to increase repayment tenure for mortgage from 20 to 40 years.

A Deputy Minister of Finance John Kumah indicated that the government’s intervention will ensure flexible payment terms while making montage attractive to Ghanaians.

He said it will also enable young graduates acquire their own homes without going through much difficulties.

The national mortgage and housing financial initiative was launched in 2018.

It was to help address the challenge of residential home ownership and stimulate the mortgage market in the country.

Mr Kumah said this when he was addressing a training workshop on national mortgage and housing financial initiative in Koforidua.

“Government is coming up with a number of initiatives to ensure that housing is made available to everybody anywhere in Ghana. Usually, what prevents many people from getting these mortgage schemes is because of the high interest.

“Government is intervening at the moment. Even though the market rate is around 24 per cent government has been able to manage to reduce it to 12 per cent of the mortgage financing scheme currently and they have up to 20 years of repayment.

“We are even looking at how we can even extend it to years beyond twenty years going forward especially for young graduate s who have just started working.

“They could be given mortgages up to forty years so that the monthly repayment will be very minimal and encourage more young people to have access to these schemes.”

By Laud Nartey||Ghana