Accra: The National Homeownership Fund (NHF) is in discussion with financial institutions to develop a national database of prospective homeowners to guide investment in the housing space. The database will also inform both the government and private sector, including developers and financial institutions, on the number of citizens who need houses within a specific location and the type of houses needed, together with the source of their incomes.
According to Ghana News Agency, Mr. Prosper Hoetu, the Chief Executive Officer of NHF, announced this during a maiden stakeholder engagement on the affordable housing financing program in Accra. The inaugural event involved key financial institutions such as GCB Bank, ABSA Bank, Ecobank, Republic Bank, Stanbic Bank, and Apex Bank, among others. Mr. Hoetu emphasized the collective role of these institutions in addressing the housing problem and fulfilling the vision of President John Mahama by providing affordable housing to Ghanaians.
He highlighted the importance of these institutions as key partners in offering financing options for affordable housing, tackling both demand and supply side challenges. Mr. Hoetu revealed that Ghana has a housing deficit of 1.8 million units that needs urgent attention. As a government-backed fund, NHF is collaborating with financial institutions to expand access to financial products such as mortgages and rent-to-own schemes, enabling workers to afford homes.
Mr. Hoetu noted that currently, about 60 percent of Ghanaians require interventions before they can purchase houses. He stated that without financial support through mortgages, 60 percent of Ghanaians cannot afford a home due to high property prices. He commended the banks for their quick and positive responses, sharing ideas on collaboration with the Fund to design products that offer workers cheaper mortgages.
He explained that once the Fund agrees on pricing and identifies interested developers, banks could partner with them to advance facilities for building affordable houses. Additionally, Mr. Hoetu mentioned the need for homeownership education, as many Ghanaians are unaware of available financial products in the market. He noted that banks are open to partnering with NHF to promote education on these products.
Mr. Hoetu addressed misconceptions about mortgages, stating that past experiences have led some to view them as traps. He believes that educating people on mortgages and their requirements would enlighten and encourage more individuals to utilize these facilities. He urged workers to take advantage of the program, emphasizing that housing is a fundamental right and a basic need alongside food and clothing.
He called on stakeholders, financial institutions, labor unions, and real estate developers to support the Fund in achieving the government's affordable housing program, stressing the collective responsibility in addressing this issue. Mr. Hoetu concluded that providing adequate housing should lead to a decrease in rent costs, addressing existing concerns about high rental prices.