Prospective home owners have been advised to desist from securing personal loans from financial institutions to buy houses or properties.
This is because the individuals risk paying higher monthly rates that in the long term affect their finances.
Speaking on the Citi FM‘s Consumer focused show, Business Today, the General Manager of HFC Bank in charge of Mortgage and Consumer Loans, Charles Bonsu advised people intending to buy homes to secure mortgages from financial institutions instead of going for personal loans for that purpose.
“A mortgage should not be less than 10 years and for us at HFC we give up to 20 years depending on your age and retirement age; once its a short term loan, you monthly payments re higher and you will ‘kill” yourself hence the need to go to a financial institution that will give a mortgage between 10 to 20 years.”
With a housing deficit of about 1.7 million currently most real estate companies are building different types of homes to try and bridge the gap but it seems the prices of such properties makes it difficult for working professional to buy or even use a mortgage to secure a home.
Also speaking on Business Today, the Executive Secretary of the Ghana Real Estate Developers Association, Sammy Amegayibor advised individuals to ensure due diligence before going in for facilities to buy homes.
”It will be very bad to entangle yourself in a cost that will make your life unbearable for the rest of your life.”
He said going in for mortgages are the best option as the ownership of the property is guaranteed once you sign on.
”If you decide to do incremental building, it could take you up about 15 to 20 years and expenditure will be increased.”
Commenting on dollar and cedi loans, Charles Bonsu used the example of his outfit where they offer dollar mortgages to Ghanaians who earn in dollar income especially nonresident Ghanaians abroad as they have a higher purchasing power.
He however cautioned against taking dollar loans when ones income is in cedis.
“Ideally, interests on dollar loans are lower as compared to cedis loans but due to the recent depreciation of the cedi, there isn’t much significance.”
By: Lorrencia Nkrumah/citifmonline.com/Ghana