Ghana’s Housing Minister has hinted of plans to create a credible Housing mortgage system from the current pension schemes in the country.

According to Works and Housing Minister, Samuel Atta Akyea, the policy is intended to ring-fence about 30 percent of pension funds as capital for real estate developers to build houses for workers which will be purchased with a mortgage arrangement.

The cost of the buildings will be spread thinly for a ten to twenty year period.

Speaking to Citi News, the Minister said government is serious about tackling the housing deficit.

“We need what we call a credible mortgage system in which you can use about 30 percent of your income to service a mortgage loan but you can never get that arrangement in place unless we touch the pension fund.

“I am even submitting that we can touch the first tier, the second and the third then ring-fence about thirty percent of all the monies and give them to the bank at a very competitive administrative rates.

Affordable housing is a major challenge for Ghanaians as the country’s housing deficit is estimated at about 1.7 million units.

In a bid to address this challenge, the President had at the State of the Nation Address announced government’s plans of initiating policies required to drive down the cost of mortgages.

The President had disclosed that, deliberations are ongoing between the Pensions Regulatory Authority (NPRA), and banks, to design an effective mortgage system for Ghanaians.

This, he said, is aimed at making access to houses affordable for the majority of Ghanaians in the middle-income bracket.

“Discussions are ongoing between the Pensions Regulatory Authority and the banks to underwrite an effective mortgage system. This will facilitate access to housing for the ordinary Ghanaian,” he said, adding that government is also working to attract private investors into the housing industry.

President Akufo-Addo was optimistic that, creating an enabling environment for the private sector will encourage investors to channel their funds into the housing industry.

By: Marian Ansah/


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