NPRA, Banks Discussing Effective Mortgage System

President Nana Addo Dankwa Akufo Addo has announced that government is putting in the necessary measures to make housing affordable to ordinary Ghanaians.

According to him, government has started initiating policies required to drive the cost of mortgage houses down.

Affordable housing is a major challenge for Ghanaians as unconfirmed housing deficit is estimated at about 1.7 million units.

Delivering the State of the Nation Address in parliament today, [8,2,2018] President Akufo-Addo disclosed that deliberations are ongoing between the National Pensions Regulatory Authority(NPRA) and banks to design an effective mortgage system for Ghanaians.

This, he said is aimed making access to building affordable for 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.

Highlighting some steps taken last year to reduce the cost of housing, President Akufo-Addo stated that government has shown commitment to provide homes for all Ghanaians by removing the 5 percent VAT/NHL on real estate cost.

“We have begun the difficult process of making housing affordable for Ghanaians. Government last year abolished the 5 percent VAT/NHL on real estate sales and continues to create a conducive environment that is reducing interest rates and mortgage loans,” he said.

Source: Citibusinessnews