Government as part of its plans to revive the affordable housing concept has established the National Housing and Mortgage Fund (NHMF).
The schemes are the National Mortgage Scheme (NMS) and the Affordable Housing Real Estate Investment Trusts (REITs) (Rent-to-own) scheme.
They are to make mortgages and rentals more affordable to public sector workers and will be extended to all Ghanaians going forward.
Under the NMS, mortgages have been underwritten at rates of 10 – 12% by the participating banks, namely, GCB Bank Limited, Stanbic Bank Ghana Limited and Republic Bank Ghana Limited
The Minister of Finance and the Minister of Works and Housing to this end paid a working visit to the TDC Affordable Enclave and Adom City Estates, both in Tema Communities 25 and 26 respectively to inspect on-going renovation works and interact with some nurses and teachers occupying completed blocks under the rent to own scheme.
According to Ken Ofori-Attah, it is time for housing to be affordable for all Ghanaians and thus government is targeting the development of about 2 million housing units for both the public and private sector.
“People must have a home that they own and stop this landlord bully, two years of rent advance, but it will take time to do but at least we are making a good start at it”, he said.
The Affordable Housing REITs is the rent-to-own scheme with only monthly rent payments and after a period, the occupant has the option to own it. It will eliminate the burden of the two-year rent advance system.
Together with the NMS, it is designed to give low income workers the opportunity to rent and eventually own homes.