A $10 million deal between home finance company, Ghana Home Loans (GHL) and the ECOWAS Bank for Investment and Development (EBID) will present individuals the chance to access cheaper loans to build their dream houses.
According to the company, this should enable it to increase the volume of mortgage it extends to clients.
Speaking with Joy Business, the Chief Executive of GHL, Dominic Adu said the deal should also trigger the construction of about 400 affordable houses towards bridging the country’s housing deficit.
“They have given us $10 million to draw down over the next year and we will use it to help people who would want to acquire their homes,” he said.
He said people who have identified homes will borrow from them to buy those homes and pay over 15 or 20 years period.
“It obviously will increase their capacity to write loans and for us, the biggest difference is that for the first time we’ve raised funds from a regional body. Prior to this, we have raised money from Europe and North America,” Mr Adu said.
He disclosed that for GHL, the amount can fund at least 400 affordable housing units which they translate to be some 2,000 people leaving in under those roofs.
“It is relatively cheaper than some of the funds we raised in the past and so when we blend it with our existing cost it brings the cost of funding down,” he said.
“Which means we can also reduce the interest rates we charge borrowers,” he said adding, “this is $10 million out of about $170 we have raised so there won’t be a reduction of a big margin, but it could bring it down to like .2 percent.”