Ghana Home Loans, the nation’s leading residential mortgage provider, has signed an MOU with the Department of Rural Housing (DRH), a policy formulation agency under the Ministry of Water Resources Works and Housing (MWRWH).
Under the terms of this MOU, the two institutions shall collaborate to build and finance affordable housing for individuals or groups that already own parcels of land.
DRH shall undertake to build homes using improved local building materials such as Compressed Earth Bricks (CEB) and Micro Concrete Roof Tiles.
As the mortgage partner, Ghana Home Loans shall provide the prospective home owners with Home Construction Mortgages to finance their projects. The credit facilities have repayments periods of up to 15 years.
The use of locally sourced materials has the twin benefit of supporting local industry as well as delivering affordable housing to the target groups.
DRH offers a selection of spacious standard house designs ranging between 77 and 148 square metres. However the Department will consider large scale projects which require a different set of house designs.
The product offering is targeted at individuals, staff associations, and credit unions that have acquired land for their members and are considering options for construction.
The challenge that these groups have typically faced has been identifying housing solutions within their income range and agreeing on a contractor to build for them.