Ghana Diaspora Mortgage FAQs

Seso Global, Africa’s leading digital property marketplace, has partnered with Republic Bank (Ghana) PLC to launch an exciting diaspora mortgage platform in Ghana. This groundbreaking platform will significantly enhance the process of investing in Ghanaian real estate by allowing Ghanaian citizens living abroad to search, submit and manage their mortgages in Ghana digitally. Indeed, this partnership with Republic Bank Ghana and this newly launched diaspora mortgage platform reflects Seso Global’s important role in the rapid growth of emerging African real estate markets. Seso Global sees the diaspora as a major catalyst for this rapid growth. It is estimated that a billion US Dollars flows into real estate in Ghana every year. This partnership will accelerate the growth of diaspora capital into Ghana real estate even further. You can read the FAQs below to get an understanding of how the Ghana Diaspora Mortgage works, and how you can leverage it to finance your dream home or next property investment in Ghana.

1. Question: Do I need a Ghana passport or ID number to open a bank account for the Ghana Diaspora Mortgage?

Answer: Yes, as part of KYC (Know your Customer) Policies, you will be required to submit valid forms of ID.

2. Question: Can I get an equity loan from Republic Bank if I already have a property in Ghana?

Answer: Yes, it is possible as long as the property meets the requirements for a home equity loan.

3. Question: What are the typical closing costs for the mortgage, and is it possible to buy down the interest rate?

Answer: Loan closing costs are typically 3-5% of the loan amount. The current interest rate is fixed at 11.5%.

4. Question: Are there additional costs beyond principal and interest, such as PMI or required insurance?

Answer: Mortgage applicants will be required to take out property insurance and mortgage life protection during the lifetime of the facility.

5.Question: Are there penalties for early repayment of the mortgage?

Answer: There are no penalties for early repayment with notice, but there is a surcharge for prepayment without notice.

6. Question: What is the maximum value the bank will provide when pulling out equity from an existing property? Is it subject to the same interest rate?

Answer: Homeowners can borrow up to 60% of the assessed value of their property, and the interest rate remains at 11.5%.

7. Question: If buying a home with a mortgage from a developer with Republic Bank, does the relationship with the developer end after payment?

Answer: The bank’s relationship with the developer continues, and due diligence is conducted to ensure the investment and mortgage are secure.

8. Question: How does the existing term of years on a lease affect a mortgage?

Answer: The lease must be renewed before disbursement, with the minimum lease term exceeding the mortgage term.

9. Question: Why is there a difference in interest rates between dollars and cedis, and is the 11.5% rate lower than the market?

Answer: The difference in rates is attributed to the source and cost of funding. The current market interest rate is 12.5%.

10: Question: Can non-Ghanaians apply for the mortgage, and what are the eligibility criteria for foreign applicants?

Answer: Mortgage applicants need to fall under specific criteria, including being a Resident Ghanaian, non-resident Ghanaian, or Resident Non-Ghanaian with evidence such as a passport or residency permit.