What is a Mortgage?
A mortgage is a legal instrument used to create a registered lien on real estate by contract between a borrower and a lender. By taking out a mortgage, an individual is able to finance the purchase of a home without having to raise all the funds upfront. The lender provides most of the funds required for the purchase while the borrower repays the lender over the term of the loan. The borrower (mortgagor) uses the mortgage to pledge real property to the lender (mortgagee) as security against the debt.
Why is IFC promoting Mortgages in Ghana?
IFC’s mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. The adoption of a market-oriented mortgage system will help to improve the lives of the many Ghanaian families that still live in unsafe, substandard, or severely cramped housing conditions. Additionally, the creation of an active and organized residential mortgage market will stimulate the growth of several supporting industries including construction, building materials, architecture and design, real estate agencies. Many downstream industries, such as small and medium size enterprises (SMEs) in furniture making, will benefit from expansion of housing markets. This will also spur growth in skilled and semi-skilled employment.
Can I obtain a mortgage through the SECO IFC Ghana Primary Mortgage Market Initiative?
The SECO IFC Primary Mortgage Market Initiative does not provide direct financing to individuals but works through five participating financial institutions. Anyone who qualifies for a mortgage under the terms and conditions of the five participating financial institutions mentioned is eligible. We recommend that you contact any of these institutions for further information to enable you purchase a house.
How do I know if I am eligible to apply for mortgage financing?
You will need to contact the five financial institutions mentioned above to find out if you are eligible under their terms and conditions.
