Factors affecting mortgage finance schemes in Ghana: a case study of Greater Accra Region

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The United Nations General Assembly, in endorsing the Global Strategy for Shelter to the year 2000 acknowledged the pressi1g need for decent housing in the developing economies. In Ghana, the avenues for owning a house includes paying for it up front, build it over a period of time or fall on the services being offered by mortgage finance schemes. The services of these mortgage schemes are perceived as beyond the affordability threshold of a majority of shelter seekers. The objectives of the study are to identify and investigate the factors affecting mortgage finance schemes and how to address them. The study examines mortgage finance institutions, real estate developers and a cross- section of workers in the public sector. The study revealed that inflationary effects, low income of workers and high interest rates were the main factors directly affecting mortgage schemes. Inadequate plots for development and difficulty of accessing funds by the estate developers were also a draw back to the schemes. The study concludes by recommending a syndication of institutions in the industry for an optimisation of the use of their resources in housing delivery. It also recommends the establishment of a national housing fund to ensure the availability of funds for housing development. Finally land owners were encouraged to invest their interest in the land with investors as their equity in the investment. It is anticipated that this will attract more developers as they will no longer be required to make up front payment for plots of land. Land owners will also have the opportunity to trade off their land.
A project report presented to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the of requirements for a Degree Master of Science Construction Management, 2000