Head of Advantage Banking of Ecobank Ghana, Winston Wobil says making an equity contribution is one of the key requirements to secure a mortgage in Ghana.
Speaking on JoyNews ’ The Probe on Sunday, Mr Wobil said Ecobank has come up with a plan which seeks to provide solutions to issues surrounding pensioners putting up buildings and moving in when they are about to go on retirement.
“At Ecobank, we just started a partnership with Enterprise, we are in talk with other pension trustees where you are able to unlock your future pension today because you know that in the mortgage industry one of the key things will require you make an equity contribution,” he told host Benjamin Akakpo.
He said planning and how to start the building project has been one of the major issues people are faced with.
“Making that choice and knowing which choice to make at which time goes a long way to affect how your project is going to and whether you are even going to own a house now or own a home when you are about going on retirement.”
To solve the issue of planning, he said Ecobank has come up with an initiative which will enable contributors to accumulate and compound their monies so that they are able to take the money when ready to go on pension.
He noted that the contributor is also given the opportunity to use the accumulated monies as collateral ahead of owning a home.
“You are able to use it (accumulated money) as security to get a 100 per cent financing from Ecobank and this allows you to live your pension today. So you don’t wait till you go on pension to unlock those funds, you are unlocking it now,” he stated.
“And the advantage is that you don’t actually have to withdraw the funds, the funds are with your trustees compounding for you and then you get to pay for the house. The good thing is that you are now paying for your own home, you are paying your own rent, you are your own landlord as against having to now be building small small waiting maybe 10 to 15 years to complete,” he added.