The Ghana Real Estate Developers Association (GREDA) is warning unless government intervenes, offering mortgage products will become extinct as banks shrink their mortgage portfolios due to failure to honour terms.
GREDA President, Patrick Ebo Bonful reckons the situation will get worse and well intentioned ordinary Ghanaians will be worse off as they cannot buy homes.
Most banks have stopped giving mortgages for years due to no payment; he submitted noting it’s time for review of the law regulating the sector so banks can be protected even as they give the mortgage while home buyers are also shielded from harm.
“The banks are pretending that they are giving mortgages and we are also pretending that that problem doesn’t exist. Check the Bank of Ghana records, they will tell you the statistics,” the GREDA chief disclosed.
Mr. Bonful observed the near death of the sector affects the economy negatively declaring such a critical sector couldn’t be allowed to implode, reason why the US had to use millions of tax payers money to shore up the sector when there was a housing bubble some years ago adding mortgage finance is crucial to solving the housing deficit challenge.
By Michael Eli Dokosi/goldstreetbusiness.com