November 5, 2012 • 0 Comments
- Renting in Ghana
Finding the right property to rent in Ghana is quite straight forward, depending on the location and budget. Rent can start from $200-$5000 per calendar month, depending on the area. Most landlords tend to demand one to two years rent advance payment before the tenant moves in. For more information on finding a property to rent in Ghana, please refer to the following sites:
Purchasing Residential Property
Most high street banks offer mortgage services, but each bank has their own requirements. To purchase a residential property Ghana, the following requirements are needed from those who reside in Ghana and those who reside out of the country:
- 2 years’ work contract,
- 3 months latest bank statement showing address and phone numbers of the bank
- Proof of address
- Copy of life Insurance Policy
- Credit report ( for those in living outside of Ghana they will need to provide credit report from their host countries)
- Offer letter of sale and purchase agreement
- Processing fee of $ 200
You qualify for a Ghana Home Loans mortgage if you meet certain eligibility requirements:
- Be financially capable of servicing your mortgage (ideally repayments should be 40% of borrower’s earnings)
- Be credit worthy with no history of bad debts
- can provide adequate security for the loan
Eligibility: Prospective borrowers will be assessed for their eligibility to apply for their preferred product.
Age: Prospective applicants must be at least eighteen years and no more than 65. The maturity of the mortgage should not extend beyond the applicant’s retirement age. Please note that prospective applicants above 55 should ensure that they can arrange for a 15- year life insurance cover before applying for a mortgage.
Purpose of the Loan: The mortgage must be used to either:
(i) finance the acquisition of a home or
(ii) refinance / re-mortgage an existing residential mortgage.
Financial Ability Income Qualification: Applicants must provide proof of their gross monthly income by way of an employment contract, tax returns, and most recent pay slips. Variable income such as overtime, allowances and bonuses are not usually considered as part of gross income. Applicants who are self-employed shall need to provide an income statement prepared by a qualified accountant. This should be supported by historical information on bank accounts to prove the income declared.
Income Security Applicants must be able to provide evidence of employment for a period of at least three years. Applicants who are not in formal employment should provide satisfactory evidence of their ability to sustain the declared level of income.
Capacity to Service the Loan. Applicants should be able to provide complete and accurate information regarding their financial responsibilities and commitments. The applicant’s monthly repayment obligation under the mortgage agreement must generally not exceed 40% of their gross income. Where the applicant has other existing loans, the combination of mortgage installment plus other loans must not exceed 60% of the gross income.
Deposit: Prospective home buyers are required to contribute a minimum of between 10-25% of the property value. The borrower will be required to provide evidence of this amount at the time of application and deposit it in a designated account before the mortgage facility is disbursed. Credit Worthiness; credit reference checks will be carried out on all credit facilities the applicant may have contracted. Ghana Home Loans must be satisfied that the applicant has a good credit rating before the mortgage is granted.
Tenure: The mortgage facility has to be secured by an unencumbered freehold or leasehold property. In the case of leasehold properties, the remaining term of the lease must exceed the maturity date of the mortgage by at least 10 years. However, where Ghana Home Loans is satisfied that an exercisable option to renew the lease is enforceable by the applicant, the renewable term will be taken into account for purposes of determining the duration of the mortgage.
Value of Security: A valuation report prepared by a surveyor acceptable to Ghana Home Loans and dated no earlier than three months prior to the application should be submitted. Once a decision has been made to purchase the property, the purchaser should contract the services of a Ghana Home Loans approved surveyor to prepare a Valuation Report of the property on his/her behalf. Ghana Home Loans may allow the Borrower to undertake the valuation after initial credit approval has been obtained.