Mortgage (home loan)

How a Ghanaian mortgage works:

• Choose a lender and currency. Lenders offer cedi and US dollar loans. Dollar loans have lower headline rates but carry currency risk if you earn in cedis.
• Qualify. Lenders look at income, employment or business records, and the property's title.
• Title checks. The lender wants clean, registered documents: a registered indenture or a land title certificate, a site plan and a clean official search.
• Lessor's consent. Most land in Ghana is leasehold, and mortgaging a lease usually needs the lessor's consent; see consent to assign.
• Stamp and register. The mortgage deed is stamped and registered at the Lands Commission.

If you default, the lender can take possession, appoint a receiver or sell the property under the mortgage terms.

Mortgages remain a small part of Ghana's housing market. Many buyers use savings, developer instalment plans or rent-to-own schemes instead.

Costs beyond interest. Budget for the lender's arrangement fee, a valuation, legal fees, stamp duty on the mortgage and registration. Ask the lender for the total cost of the loan, not just the rate.

Buying from a developer. Lenders often work with particular developers whose estates have clean title. If a developer's title is not registered, the lender may refuse the loan, so check this before you pay a deposit.

Building with a mortgage. Some lenders offer construction or completion loans, released in stages as work is inspected. These need a building permit and a registered interest in the land.

Mortgage lending is concentrated in Greater Accra and Kumasi, where most properties with registered title are. Outside registration districts, lenders rely on registered indentures.

Lenders are most active in Greater Accra and Kumasi. In other regions, fewer properties have the registered documents lenders require, so mortgages are rarer.