Salary a Ghanaian May Need to Buy a House Through New 8.4% Mortgage Scheme
- The National Homeownership Fund has announced the resumption of mortgage lending at an 8.4% interest rate
- A worker earning GH¢2,500 net monthly could reportedly access GH¢143,000 and repay GH¢1,231.95 monthly
- Calculations show that accessing GH¢500,000 could require a net salary of approximately GH¢8,700
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Ghanaians hoping to own homes may soon have a more affordable financing option following the announcement of a revised mortgage arrangement by the National Homeownership Fund (NHF).
Source: UGC
The Fund intends to resume lending under the National Mortgage Scheme at an annual interest rate of 8.4%. The rate is considerably lower than many commercial mortgage rates available in Ghana.
According to NHF Chief Executive Officer Prosper Hoetu, a worker earning a net monthly income of GH¢2,500 could qualify for a mortgage of up to GH¢143,000.
Such a borrower would pay approximately GH¢1,231.95 every month over a maximum period of 20 years. The actual amount accessible, however, will depend on the applicant’s income and the assessment conducted by a participating bank.
Estimated salaries and repayments
Using the NHF example as a guide, a Ghanaian seeking a GH¢300,000 mortgage could face an estimated monthly repayment of GH¢2,585 over 20 years. The person may require a net salary of approximately GH¢5,245 monthly to meet a similar affordability threshold.
For a GH¢500,000 mortgage, the estimated repayment rises to about GH¢4,308 monthly. This could require the applicant to earn around GH¢8,741 after taxes and other deductions.
Someone interested in accessing GH¢700,000 may pay approximately GH¢6,031 monthly and need a net salary of about GH¢12,238.
A GH¢1 million mortgage could attract a monthly repayment of roughly GH¢8,615. Based on the same calculation, the applicant may require a net monthly income of approximately GH¢17,483.
These figures assume an 8.4% annual interest rate, a 20-year repayment period and the same repayment-to-income ratio used in the NHF’s GH¢2,500 example. They are estimates rather than confirmed qualification figures.
Applicants can combine incomes
The National Mortgage Scheme permits joint applications, allowing spouses or other eligible co-applicants to combine their incomes. This could help applicants qualify for larger mortgages than they could individually.
The NHF states that the scheme will be administered through participating financial institutions, including GCB Bank, Republic Bank and Stanbic Bank. Prospective applicants must contact a participating bank to begin the process.
Final approval may depend on factors such as the applicant’s age, existing loans, employment record, credit history and the value of the property.
A deposit, insurance, property valuation, legal documentation and processing charges may also increase the amount required. Therefore, earning the estimated salary alone does not guarantee approval or mean the mortgage will cover the complete price of a house.
What GH¢50,000 can cover when building
Previously, YEN.com.gh reported that GH¢50,000 can provide a meaningful start to a modest building project in Ghana if the land is already secured.
Current 2026 estimates put cement around GH¢75 to GH¢101 per bag, while concrete blocks can average about GH¢6.20 each.
The amount may cover a foundation and some blockwork on a small house, but labour, transport and site conditions can quickly change the total cost.
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Source: YEN.com.gh
