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Mortgages In Ghana — The Myths And The Facts



Mr Kojo Addo-Kuffour (Executive Head, Home Loans, First National Bank)

If you are renting now, buying a home could be a better financial decision. Of course, that depends on several factors such as; where you live, how much you pay now as rent, an available fit-for-purpose house you can afford, current mortgage interest rates and your aspirations.

Taking your first steps towards home ownership – and getting a foot on the property ladder – can be an exciting journey. Kojo Addo-Kufuor, Executive Head of Home Loans at First National Bank Ghana explained that apart from the financial aspect, it is also important that you’re armed with information – and the right information at that –
before you start your journey to homeownership.

“While it is important to do your research during the home-buying process, you must not believe everything you hear.”, he says. You could do with all the help to make an outright purchase, or get a loan to buy that land, build that house or buy out that cozy property in that estate you’ve been eying for some time.

Contrary to what you may have heard, getting a mortgage does not require perfect credit or a large down payment. It is however safe to say you should get your finances in order before you start house hunting or talking to lenders.

Kojo Addo-Kufuor, in this piece, helps you split the assumptions, untruths, and the gaps in the public knowledge on acquiring a home loan.

Mortgages are the preserve of the elderly and fulfilled

Many people in their 20s and 30s think of home ownership as a distant prospect; this is not exactly the case. Shared concerns and experience have shown that young people see the deposit as the biggest obstacle to getting on the ladder. It is not that terrible a prospect. You can now get a home loan offer of up to 100% property’s value if you are resident in Ghana and up to 70% if you are non-resident. This means it is possible to buy a house without making any down payment at all.

First National Bank’s innovative First Time Buyer home loan product is best suited for young professionals or executives who have just graduated into their first jobs, and/or supplemented by other revenue lines.

Such young professionals or executives could easily get to translate their monthly rent into monthly mortgage repayments towards the purchase of their own property. In fact, over 60% of the home loan client base are below age 45. It’s also important to consider that with your mortgage repayments, you’re adding to the equity you own in the property with each installment paid, whereas this is not the case when you pay rent as a tenant.

You can only get a mortgage from your bank

The truth is lots of people believe that their existing bank is the one and only place to go when it’s time to think about a mortgage.

That is probably because your bank will regularly send advertising material on what they can offer relatively along with preferential rates. It however makes sense to look around some more. The banking industry in Ghana is quite diversified, and banks are adding on to their portfolio with the right partnerships. First National Bank after merging with the erstwhile GHL Bank, has enhanced its home loan portfolio to serve many more Ghanaians with products which hitherto wasn’t accessible. If you are a salaried worker, you can access the broad suite of regular home loans. If you are a business owner or have multiple revenue streams, the innovative Save-To-Own home loan is best suited; just by demonstrating your ability to repay with a monthly deposit into an account for a year or two and then you have a home loan.

You need to have a perfect credit rating to get a mortgage

It’s obvious that you’ll struggle to get a mortgage with a bad credit history. The assessment of your application goes beyond that. Your credit history and your current ability to settle such gaps could be considered in the process. Speak to a mortgage advisor at First National Bank Ghana. These people help you make the right choices for a home loan based on your responses to some background questions and then guide you appropriately through the process.

The best mortgage deal is one with the lowest interest rate

It’s certainly right to think of the interest rate as how much your mortgage actually ‘costs’, as this is what you pay to have your loan, on top of the equity you’re accruing in your property. But that’s not to say you should assume that the lowest interest rate means the cheapest mortgage.

Only full time salaried workers get mortgages in Ghana

This is a common misconception that lenders see anyone, not in a full-time formal job as a risk. With the rise in freelancing, entrepreneurs, small business owners, side hustle enthusiasts, flexible and contract work in Ghana, banks like First National Bank Ghana take a much more individualistic approach when it comes to assessing people’s credit and underwriting situations. There’s every chance you can qualify for your home loan application provided your income is stable and sufficient for a comfortable repayment plan. While there are plenty of mortgage misconceptions floating around these days, from how hard it may be to qualify to how much you should put down, it’s important to learn the facts and how they apply to you. The truth is, getting a mortgage is much easier than you may think. If you need financing to buy a home, talk to First National Bank Ghana’s. Not doing so could delay homeownership, and the benefits you could gain by years.

Written By: Mr. Kojo Addo-Kuffour (Executive Head, Home Loans, First National Bank)

For more information contact:
First National Bank Corporate Affairs
Delali Dzidzienyo

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US 2020: Joe Biden Releases His Tax Returns Hours Before Presidential Debate



US presidential candidate, Joe Biden released his tax returns on Tuesday, September 29, hours before he is set to square off with President Donald Trump in the first presidential debate in Ohio.

According to his tax returns, Joe Biden and his wife earned nearly $1million in 2019 and paid $346k in taxes.

Tweeting Tuesday night, Biden wrote; “The American people deserve transparency from their leaders, it’s why as of today, I’ve released 22 years of my tax returns.”

US 2020: Joe Biden releases his tax returns hours before presidential debate

Biden’s tax release comes days after a bombshell report from The New York Times showed Trump paid just $750 in federal taxes in 2016 and 2017.

The shocking figure reportedly paid by Trump was possible due to reported financial losses, a damaging blow to the successful ‘billionaire businessman’ image he has projected throughout his career.

Biden’s deputy campaign manager Kate Bedingfield said on Tuesday that they released the presidential candidate’s financial information to be transparent.

“This is a historic level of transparency and it will give the American people faith once again that their leaders will look out for them and not their own bottom line,” she said.

Trump has never released his tax returns claiming he can’t release them since he is being audited by the IRS.

On Monday he also denied the New York Times report that said he paid only $750 as tax in 2016 and 2017.

When asked about the report at the White House, Trump simply said: “I paid tax.”
“I’ve paid a lot, and I’ve paid a lot of state income taxes, too,”.

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Togo Appoints First Female Prime Minister



Togo’s President Faure Gnassingbé has appointed the country’s first-ever female prime minister.

Victoire Tomegah Dogbé is an economics and marketing graduate and had held a senior post in the president’s office.

Before that, she spent a decade as the minister of grassroots development and youth employment.

She had earlier worked for the United Nations Development Programme.

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Agyin Asare, Kofi Oduro & Sam Korankye Ankrah Are Fake Pastors : Rev Owusu Bempah



Rev. Isaac Owusu Bempah aka The Nation’s prophet has called out some renowed Ghanaian pastors as fake men of God who are just deceiving their followers.

According to the founder and leader of Glorious Word Power Ministries International named the likes of Agyin Asare, Kofi Oduro & Sam Korankye Ankrah as some of the fake pastors in the country.

He made this allegations while speaking in an interview with Fiifi Pratt on Accra based Kingdom FM.

Rev. Owusu Bempah indicated that prophecies of these pastors do not manifest and that alone is a clear indication that they are not genuine.

Attacking Agyin Asare, he disclosed that when he prophecied about the June 4th disaster some years ago, he (Agyin Asare) insulted him and told Ghanaians not to be worried because there was nothing going to happen.

But fast forward the incident happened adding that the families of all those who lost their lives should blame him for deceiving them because if they had listened to him Owusu Bempah, all these could have been averted.

Watch the interview below:

Throwing missiles at Prophet Kofi Oduro, he the latter is not a genuine prophet simply because he sees nothing in the spiritual realm. But all he knows what to best is to make unneccesary noise in the country.

He continued that Prophet Oduro who also leads Alabaster International Ministries congregants is doing everything he can to prove to the world that he is truly from God but the truth is, he is fake.

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