Globally, real estate remains the largest store of wealth with the residential real estate sector accounting for about 80% of the value of global real estate. The sector thrives on finance and involves complex economic, as well as policy issues. Real estate developers, investors, contractors, governments and other industry players work hand in hand with financial institutions to acquire funds to undertake real estate projects.
In Ghana, the mortgage market is underdeveloped and is characterised by high interest rates, low income levels and complicated collateral, owing to uncertainty of title to land. Despite this, there remain some key financial institutions that provide mortgages in the country. These are the First National Bank, Republic Bank Limited, Fidelity Bank Limited, Stanbic Bank Limited, GCB Bank and Ecobank Ghana Limited.
- First National Bank
Formerly known as the GHL Bank (Ghana Home Loans), the bank currently operates as a merger between the First National Bank and the GHL Bank. The bank remains a dominant financial institution in providing mortgages for real estate projects. First National Bank accounts for about 50% of the existing mortgage market in Ghana.
- Republic Bank Limited
Until April 2018 when the bank rebranded, the Republic Bank was previously referred to as the HFC Bank (Home Finance Company). The bank remains one of the oldest financial institutions known for the provision of finance for real estate projects. The bank has developed a variety of packages to assist individuals and firms to acquire mortgages for real estate projects.
- Fidelity Bank Limited
Established in 2006, Fidelity bank has grown to become one of the largest privately-owned banks in Ghana. The bank is a key provider of mortgages in the country and has signed Memoranda of Understanding (MoU) with a number of real estate developers in the country to enable customers access mortgage loans with ease. Their partner developers include the Trasacco Estate Developers, Appolonia Development Company, NTHC Properties, Blue Rose Developers, New Oak, Priority Homes, Adom City Estates GHS Housing, Integral Associates, among others.
- Stanbic Bank Limited
The Stanbic bank has been in operation in Ghana for over two decades. The bank is customer-oriented and has introduced a variety of home finance packages over the years to assist individuals and institutions to access funds for real estate projects with ease.
- GCB Bank
The GCB Bank (Previously known as the Ghana Commercial Bank) is the largest bank in Ghana in terms of total operating assets and industry deposits. The bank is well-known as a key provider of funds for state or government housing providers. The bank has collaborated with the Tema Development Corporation (TDC) to develop 204 units of flats for public sector workers and has funded other housing developments under the National Housing and Mortgage Fund (NHMF)
- Ecobank Ghana Limited
Operating in the Ghanaian market for over 30 years, Ecobank Ghana Limited is known for its innovation in providing finance for real estate developments. In 2021, the bank introduced a mortgage package backed by pension contributions. Aside this, the bank has a wide range of mortgage packages for its customers for home purchasing, renovation and construction. The bank has also signed mortgage agreements with real estate developers in Ghana. Devtraco is a key partner of the bank for exclusive financing.
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