How to Finance Your Real Estate Purchase in Ghana

Ever dream of relaxing in your dream home, the vibrant sounds of a street party drifting up as the sun dips below the horizon?

The good news? It's closer than you think!

In this piece, we’ll explore various financing options to help you realize that dream. 

Whether you're a first-time homebuyer or looking to expand your property portfolio, understanding your financing options is key to navigating the real estate market in Ghana.

Let’s dive deeper!

1. Traditional Bank Mortgages

When financing a real estate purchase in Ghana, the most common route is securing a mortgage from a bank. These institutions offer different types of mortgages, such as fixed-rate and adjustable-rate loans. 

With a traditional bank mortgage, you’re essentially borrowing money to buy a property, then repaying it over a set period—often 15 to 20 years. 

The benefit? 

You can spread out the cost, making homeownership more accessible without paying the full amount upfront.

But how do you qualify? 

Generally, you’ll need a stable income, a decent credit score, and the ability to make a down payment, usually around 20% of the property's value.

This financing option is available for home purchasers like you at Lakeside Estate. We’ve partnered with 4 banks in Ghana to provide affordable mortgages to homeowners.

You could be the next. Why wait? Give us a call at +233 20 477 5043 or WhatsApp us today.

2. Government Housing Scheme

Did you know the Ghanaian government offers housing schemes to help people like you buy their first homes? 

These programs are particularly beneficial for low- to middle-income earners. Often, they come with lower interest rates and longer repayment periods, making it easier to finance a home.

Government housing schemes aim to make homeownership more affordable and attainable. If you're a first-time buyer, this could be a great option. 

Eligibility usually depends on factors like your income level and residency status, so it’s worth checking if you qualify.

3. Savings and Investment Plans

If you prefer a more self-reliant approach, savings and investments might be the way to go. 

You can build up the funds needed to buy a property by setting aside a portion of your income over time. 

Consider this: Instead of jumping into a mortgage, you could start a dedicated savings plan. You could also invest in mutual funds or fixed deposits to grow your savings more quickly. 

Although it might take longer to reach your goal, this method allows you to avoid the interest payments that come with loans.

4. Real Estate Investment Groups (REIGs)

Looking for a way to invest in property without the full responsibility of ownership? Real Estate Investment Groups (REIGs) might be the perfect fit. 

In a REIG, multiple investors pool their money to purchase properties that are managed collectively.

Joining a REIG allows you to own a share of a property portfolio without the hassle of day-to-day management. This option is particularly appealing if you want to invest in real estate but don’t have the resources to buy a property on your own. 

Plus, it spreads out the risk among several investors, making it a safer bet for beginners.

5. Developer Financing

Some developers offer financing directly to buyers, which can be a more flexible option compared to traditional bank loans. Developer financing often comes with perks like lower interest rates or longer repayment terms.

When you buy directly from a developer like Lakeside Estate, you will get financing terms tailored to your situation, making the process more convenient. 

Terms can vary, so it’s essential to thoroughly review the agreement. Partnering with a reputable developer like Lakeside Estate ensures you get a fair deal.

6. Home Equity Loans

Already own property? Consider taking out a home equity loan, which lets you borrow against the value of your current home. It’s a smart way to finance a new property purchase, especially if your existing house has been appreciated.

While a home equity loan can provide the funds you need, it’s important to proceed with caution. 

Your existing property serves as collateral, meaning you could risk losing it if you’re unable to repay the loan. Make sure to weigh the pros and cons carefully.

7. Partnerships and Joint Ventures

Don’t want to go it alone? Partnerships or joint ventures could be your answer. Team up with a partner or group to pool resources and share the costs of purchasing real estate.

This option is useful if you’re looking to invest in a high-demand area but don’t have the financial capacity. 

Just be sure to establish clear terms and agreements with your partners to avoid any potential conflicts down the line.

Financing your real estate purchase in Ghana might seem daunting, but with so many options available, there’s likely a solution that fits your needs. 

Whether you opt for a traditional mortgage, explore government housing schemes, or consider alternative financing methods, the key is to choose what works best for you.

Ready to make your dream home a reality?