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Funding mortgages: NPRA to allow Tier 2&3 funds by end of year

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The National Pensions Regulatory Authority (NPRA) has disclosed to Citi Business News that workers should be able to access mortgage loans with their tier 2 and 3 pension benefits by the end of this year.

It follows numerous reservations by some players in the mortgage industry that the Authority has not worked satisfactorily to get mortgage loans for some Ghanaian workers.

In their view, the move should among others reduce the burden of meeting huge mortgage requirements by prospective home buyers.

The renewed calls from the mortgage industry also come after government’s proposed Housing Fund that seeks to cushion low income earners in the acquisition of housing properties and reduce the country’s housing deficit.

The players also believe the strict enforcement on funding mortgages with tier 2 and 3 pension benefits should facilitate the smooth operation of the Housing Fund.

But the Corporate Affairs Director at the National Pensions Regulatory Authority, Rosina Akrofi tells Citi Business News plans are far advanced to ensure mortgage loans are accessed with the tier 2 and 3 pension benefits by the end of this year.

“It takes a little time; we started about six or seven years ago but I can assure you that this issue on mortgages will be cleared by the end of this year.

“We will see how pensions for mortgages will work because even those in the formal sector are still not being able to take advantage of it and like I told you when the guidelines are ready everybody can now have access to it. This is not anything that had just been said out of the blue, it will work because it is law and it will work.” she stated.

By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana

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