Eligibility

You qualify for a Ghana Home Loans mortgage if you:

• meet certain eligibility requirements
• are financially capable of servicing your mortgage (ideally repayments should be 40% of borrower's earnings)
• are credit worthy with no history of bad debts
• can provide adequate security for the loan

Eligibility: Prospective borrowers will be assessed for their eligibility to apply for their preferred product.

Age: Prospective applicants must be at least eighteen years and no more than 65. The maturity of the mortgage should not extend beyond the applicant’s retirement age. Please note that prospective applicants above 55 should ensure that they can arrange 15 year life insurance cover before applying for a mortgage.

Purpose of the Loan: The mortgage must be used to either (i) finance the acquisition of a home or (ii) refinance / re-mortgage an existing residential mortgage.

Financial Ability

Income Qualification
Applicants must provide proof of their gross monthly income by way of an employment contract, tax returns, and most recent pay slips. Variable income such as overtime, allowances and bonuses are not usually considered as part of gross income. Applicant’s who are self-employed shall need to provide an income statement prepared by a qualified accountant. This should be supported by historical information on bank accounts to prove the income declared;

Income Security
Applicants must be able to provide evidence of employment for a period of at least three years. Applicants who are not in formal employment should provide satisfactory evidence of their ability to sustain the declared level of income;

Capacity to Service the Loan
Applicants should be able to provide complete and accurate information regarding their financial responsibilities and commitments. The applicant’s monthly repayment obligation under the mortgage agreement must generally not exceed 40% of their gross income. Where the applicant has other existing loans, the combination of mortgage installment plus other loans must not exceed 60% of the gross income;

Deposit

Prospective home buyers are required to contribute a minimum of between 10-25% of the property value. The borrower will be required to provide evidence of this amount at the time of application and deposit it in a designated account before the mortgage facility is disbursed;

Credit Worthiness
Credit reference checks will be carried out on all credit facilities the applicant may have contracted. Ghana Home Loans must be satisfied that the applicant has a good credit rating before the mortgage is granted.

Quality of Security

Tenure
The mortgage facility has to be secured by an unencumbered freehold or leasehold property. In the case of leasehold properties, the remaining term of the lease must exceed the maturity date of the mortgage by at least 10 years.

However where Ghana Home Loans is satisfied that an exercisable option to renew the lease is enforceable by the applicant, the renewable term will be taken into account for purposes of determining the duration of the mortgage;

Value of Security

A valuation report prepared by a surveyor acceptable to Ghana Home Loans and dated no earlier than three months prior to the application should be submitted. Once a decision has been made to purchase the property, the purchaser should contract the services of a Ghana Home Loans approved surveyor to prepare a Valuation Report of the property on his/her behalf. Ghana Home Loans may allow the Borrower to undertake the valuation after initial credit approval has been obtained

Duration of the Mortgage

Ghana Home Loans’ maximum duration of the mortgage loan is 15 years. Borrowers may choose to pre-pay their mortgages, an option which may attract a small penalty;

Instrument of Security

Most mortgage facilities must be secured by a legal first mortgage on the land and building, life insurance and fire insurance assigned to the Mortgagee;

Life Insurance

Ghana Home Loans requires life insurance coverage on the duration of the mortgagors covering the loan amount. This insurance serves as additional security for Ghana Home Loans but it is also recommended as it provides additional security for mortgagors in the event of death. That is, if the mortgagor should die during the term of the loan, the proceeds of the life policy would be used to pay of the mortgage therefore the family would not be left with the outstanding debt;

Comprehensive Property Insurance Cover

The borrower shall be required to maintain a comprehensive all-risk insurance coverage for the replacement value of the mortgaged property. Both life insurance (if required) and comprehensive insurance must be assigned to Ghana Home Loans during the term of the mortgage