Ghana’s ability to close its housing gap and expand homeownership will depend heavily on bold financing reforms and coordinated stakeholder action, according to the National Homeownership Fund (NHF).
Mr. Prosper Hoetu, Chief Executive Officer of the NHF, said limited access to affordable financing remained one of the biggest barriers to owning a home in the country, with a significant proportion of Ghanaians unable to purchase property without financial support.
He noted that although demand for housing continued to rise, mortgage uptake remained critically low, with Ghana’s mortgage-to-GDP ratio estimated at under one percent highlighting deep structural challenges within the housing finance ecosystem.
Mr. Hoetu made these remarks during a stakeholder engagement workshop in Accra, organised as part of preparations for the NHF’s 2026–2030 strategic plan.
He attributed the weak mortgage market to persistent macroeconomic pressures, including high inflation, elevated lending rates, exchange rate volatility, and broader economic uncertainty.
These factors, he explained, had discouraged long-term investment in housing finance while making borrowing costly for households.
Land tenure complications and generally low income levels have also compounded the problem, further restricting access to mortgage financing and slowing the pace of housing development.
Despite these constraints, Mr. Hoetu emphasised that strengthening Ghana’s mortgage market could serve as a powerful engine for economic transformation.
A well-functioning housing finance system, he said, would stimulate job creation, drive urban expansion, and boost demand across key sectors such as construction, manufacturing, and financial services.
He explained that the NHF was established to promote a sustainable local currency mortgage market while introducing innovative financing models tailored to Ghana’s economic realities.
As part of this effort, the Fund has piloted a National Mortgage Scheme in collaboration with selected financial institutions. The initiative uses blended finance structures to deliver lower-interest mortgage products to prospective homeowners.
In addition, the NHF has introduced Real Estate Investment Trusts (REITs), including one that has tested a rent-to-own model aimed at individuals who are unable to meet traditional mortgage requirements.
Mr. Hoetu said addressing Ghana’s housing deficit would require a dual focus on both supply and demand. On the supply side, high construction costs driven largely by expensive inputs and financing continue to push property prices beyond the reach of average earners.
To ease this burden, the Fund is supporting developers with lower-cost construction financing targeted at affordable housing projects.
Looking ahead, he indicated that the NHF’s upcoming five-year strategy would prioritise de-risking investments in the housing sector, expanding access to mortgages, and scaling alternative homeownership options.
He expressed confidence that stronger partnerships between government, financial institutions, and private developers would help reduce the housing deficit while advancing broader development goals, including sustainable urbanisation, poverty reduction, and climate-resilient housing.
Mr. Hoetu further called on industry players and policymakers to actively contribute ideas and technical expertise to shape a more inclusive housing market.
Adding to the discussion, Dr. Frank Gyamfi-Yeboah, Senior Lecturer at the Department of Land Economy at the Kwame Nkrumah University of Science and Technology (KNUST), underscored the need for structural reforms to improve housing affordability.
He observed that developers often transfer the cost of essential infrastructure such as roads, water systems, and electricity to homebuyers, significantly increasing the final price of housing units.
Dr. Gyamfi-Yeboah advocated greater state involvement in the planning and development of new communities to ease this burden.
He proposed the introduction of a Master Plan Community Developer (MPCD) framework to ensure well-serviced, properly planned settlements while reducing land disputes.
He also highlighted liquidity constraints within the banking sector, noting that most banks rely on short-term deposits, making it difficult to offer long-term mortgage products at affordable rates.
To address this mismatch, he recommended the establishment of a mortgage refinance company to provide long-term funding support to financial institutions and improve mortgage affordability.
Furthermore, he called for a legal framework to formally back the NHF, arguing that legislation would clarify its mandate and position it as a facilitator of affordable housing rather than a competitor to private sector developers.
