- Mortgages are one of the alternatives Ghanaians can choose from when looking at paying for a house without having outright cash
- Some people have thought about taking home loans to buy a house but they may not know much about how it works
- Going for a mortgage has benefits and problems which people must know before deciding whether it will be a good home payment option for them
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Before deciding on a home payment option like mortgages, it is important to conduct research to know what it is all about. In this article, YEN.com.gh lists a few pros and cons of home loans for people to consider.
Advantages of Mortgages
Flexibility on Payment
Mortgages allow people to repay home loans on a flexible monthly basis which makes them pocket friendly. This is a great way for a lot of people to become eventual homeowners because many do not have a bulk sum of money to make an outright purchase of a house.
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In Ghana, the government offers tax reliefs for companies who buy land or property with mortgages. The government also gives a tax reduction for mortgage interests and also for contributions towards retirement.
Disadvantages of Going For Mortgages
Pay Back With Interest
One problem with going for mortgages is that you will have to pay back with interest. This means that you will be paying more than the actual cost of the property in the long run. Some mortgage facilities offer high-interest rates and you can pay as much as up to 50% of the price of the house.
Forfeit The House
If for some reason you are not able to continue your monthly loan repayments, then the bank or mortgage facility will have the right to repossess the property from you. Remember, the house becomes fully yours only after you have made all payments on the property.
Not Everyone is Eligible for a Mortgage
Every bank or home loan facility has requirements and eligibility criteria that people must before they qualify for a mortgage. This means that a number of people will not benefit and lose out on owning a home.
There are no eligibility requirements for people who pay for houses with cash.
3 Things to Be Aware of Before Getting an Office Space in Ghana
In an earlier article, YEN.com.gh wrote about 3 things people should consider before renting a commercial space. A lot of small businesses are in a hurry to get accommodation for their office without any due diligence.
This is how a number of businesses have collapsed, having spent all their money on rent paying for the place whiles the business does not attract customers.