The Vice President Dr. Mahamudu Buwumia has bemoaned the cost of mortgage houses in Ghana describing it as the highest mortgage to income ratio in the whole world.
By this, Ghana tops the list of countries in the whole world whose citizens income cannot pay for mortgage houses offered in the country.
Speaking at the launch of Construction Bank, which is the 44th bank to be licensed by the Bank of Ghana, Dr. Bawumia expressed surprise at how mortgage costs are covered, promising to improve the situation.
“I was looking at some data the other day. Ghana has the highest mortgage to income ratio in the world, not just in Africa but in the whole world. I mean that is amazing. Highest mortgage to income ratio. It tells you that a lot of the people with mortgages probably are not earning incomes in Ghana, they are probably earning incomes elsewhere,” he said.
“In terms of the affordability to ratio also we have some of the highest cost of housing to income ratio in the world. We need to develop our mortgage industry and this will help the construction industry in accessing loans and also collateralized as well for loans,” he added.
Dr. Bawumia maintained that providing cheaper source of funds for the construction sector is key solution to solving the huge housing deficit to challenges the country.
He pointed out that the government is working to bring down interest rates and stabilize the exchange rate—which are critical for the construction industry.
“Our country has a huge housing and infrastructure deficit which calls for affordable sources of funds to offer mortgages for the purchase of houses to be built as well as industries for the entire nation. Our mortgage market however is very rudimentary, it’s not developed,” he observed.