THE NATURE OF MORTGAGE REPAYMENT PLANS IN GHANA

Authors

  • Justice Agyei Ampofo University for Development Studies, Tamale, Ghana, University of Education, Winneba-Ghana and Ghana Education Service, Upper West Region, Wa, Ghana

Abstract

Mortgage finance is one source of capital that cannot be ruled out when it comes to housing finance. It has globally aided many countries in terms of housing finance. A country’s housing finance system can work effectively if there is/are mortgage repayment plan(s) that would ensure flexibility in repayment of mortgage loans and encourage supply and demand for mortgage products. The study sought to find out the types and nature of mortgage repayment plans in Ghana. All the financial institutions which were into mortgage banking constituted the sample. The result shows that fixed rate method is the commonest method used in Ghana and other repayment plans have evolved from the fixed rate repayment plan. Exchange rate fluctuations, high interest rates and high house prices result in higher initial monthly mortgage repayment using the fixed rate repayment plan. It is recommended that mortgage lending institutions should reduce their interest rate for low middle income earners in Ghana to qualify for mortgage.

Author Biography

Justice Agyei Ampofo, University for Development Studies, Tamale, Ghana, University of Education, Winneba-Ghana and Ghana Education Service, Upper West Region, Wa, Ghana

Justice Agyei Ampofo is a Built Environment Specialist with special research interest in education, buildings maintenance, facility management, real estate management, land use change, land management, environmental management and sustainability.

Published

2020-09-01 — Updated on 2020-09-01

Issue

Section

Articles