Owning Your Dream Home in Ghana or Nigeria: A Guide to Mortgages

For millions of people, owning a home or investing in a property are important lifetime goals  . However the path to homeownership involves significant considerations and challenges, especially with regards to financing. Thankfully mortgages have emerged as one of the most effective tools in overcoming such challenges especially in more developed economies/ real estate markets. A mortgage is a type of loan where there is an agreement between the borrower and a mortgage lender ( usually a bank) to buy or finance a home without having to pay all the cash upfront. What is typically required is that the individual has to make a down payment and the remainder is paid to the property owner or developer by the bank. As a result,  the individual gets to pay in installments over a period of time. This agreement gives the mortgage lender the legal rights to the property if the borrower fails to meet the terms of the mortgage. Fortunately, the financing ecosystem in emerging markets like Ghana and Nigeria has continued to develop over the past ten years making it much more feasible for people to buy and invest in property through mortgages. But before you embark on the exciting journey of homeownership or investment through a mortgage, it’s crucial to understand what a mortgage entails and how to use it effectively.

3 Key Considerations When Getting a Mortgage in Ghana or Nigeria

1. Financial Stability is Paramount: A mortgage is a long-term financial commitment. Because of this you need to be sure that your finances can support that commitment. It’s important to understand where you are financially, how much you can qualify for and the kind of property you should be looking for when seeking to use a mortgage to finance your property.

2. Understanding Your Purpose: The second thing is to understand why you want to buy or build this property. Are you buying a home to live in or as an investment? This distinction significantly impacts your mortgage strategy. If you plan to live in the property, you are not likely to get any revenue from it so affordability becomes the primary concern. You need to buy the right property at the right price so that if you decide to sell the property you can generate enough income from the sale to pay off the mortgage. On the other hand, if you’re looking at an investment property, the rental income or return on investment needs to exceed the monthly mortgage payment to ensure a sustainable investment. So if your mortgage repayment is 5,000ghs a month your return on investment on the property should be 5,000ghs or more a month. 

3. Be Cost-Conscious: Getting a mortgage goes beyond the principal loan amount. You must factor in additional fees like property insurance, life insurance (optional but recommended), and legal costs associated with closing the purchase. 

Advantages of Getting a Mortgage in Ghana or Nigeria

• Build Equity: Owning a home isn’t just about having a roof over your head; it’s an investment. Each mortgage payment contributes to building equity in your property, creating long-term value.
  
• Long-Term Stability: Unlike renting, where prices can fluctuate, a fixed-rate mortgage offers predictable monthly payments, allowing you to budget effectively and plan for the future.
  
• Potential for Appreciation: Real estate in Ghana and Nigeria has shown a steady upward trend over the years. Owning a property through a mortgage makes you a beneficiary of this potential appreciation, boosting your overall net worth.
  
• Generational Legacy: A home is more than bricks and mortar; it’s a place to build memories and create a foundation for your family. Homeownership through a mortgage allows you to leave a lasting legacy for future generations.
  

Seso Global simplifies the process of getting a mortgage in Ghana and Nigeria by connecting you with trusted mortgage lenders. Here are just a few of our key partners:

• Republic Bank
• Ecobank
• Imperial Bank
• FNB Bank

Through these partnerships, Seso Global offers a wide range of flexible mortgage options tailored to your specific needs and financial goals. Our user-friendly digital platform allows you to browse properties, calculate estimated mortgage payments, and connect directly with lenders – all from the comfort of your home.