The Housing Finance System

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    A. Primary Housing Finance Market

    A.1 Industry Structure and Performance
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    Number of firms originating and funding mortgage loans20135
    CAHF
    		A.1.1
    Types of originating lenders/market share:A.1.2
    Universal/ commercial banks75% of total69.23% of total80% of total
    CAHF
    		A.1.2.1
    Other depository institutions (savings and loans/mutual savings and credit institutions)25% of total23.08% of total 
    CAHF
    		A.1.2.2
    Non-depository financial institutions specialized in housing finance% of total7.69% of total20% of total
    CAHF
    		A.1.2.3
    Identify the 3 largest loan originating lendersRepublic Bank, Ghana Home Loans, Fidelity Bank HFC Bank, Ghana Home Loans, Fidelity Bank
    Research
    		A.1.3
    Level of Non-Performing Mortgage Loans (90 days or more past due):A.1.6
    Average 1997-2007 A.1.7
    A.2 Size of Mortgage Finance Sector
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    Total amount of home mortgage loans outstanding at the end of year in millions of USD:  177 USD (millions)
    Bank of Ghana Annual Report
    		A.2.1
    Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)  .37%
    Bank of Ghana Annual Reports, CAHF Yearbook
    		A.2.1.1
    Total # of home mortgage loans outstanding at the end of year  50,127.4 thousandA.2.2
    A.3 Housing Finance Products
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    Mortgage products as % of all mortgages (approx.) in local currency:A.3.1
    Most prevalent type of foreign currency mortgage used:A.3.3
    Most frequent interest rates on fully amortizing:A.3.4
    10 year fixed rate mortgage28% 28%
    CAHF
    		A.3.4.1
    Typical lender fees associated with mortgage origination: A.3.6
    Typical third party fees associated with mortgage origination:A.3.7
    Loan-to-Value (LTV) on first mortgage: A.3.8
    Maximum LTV 85%80%
    Housing Finance Network
    		A.3.8.1
    Typical LTV at origination80% 75%
    CAHF Yearbook
    		A.3.8.2
    Maximum term over which pmt is calculated? 20 years  
    UN Habitat, CAHF Yearbook
    		A.3.9
    Mortgage pmt-to-income ratio A.3.10
    Maximum pmt-to-income ratio (Individual income)  40%
    Demand for residential mortgages in Ghana- research thesis - http://hofinet.org/documents/doc.aspx?id=2262
    		A.3.10.2
    Typical pmt-to-income ratio (HH income)  30%A.3.10.3
    A.4 Lending and Servicing Process
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    Which institutions define underwriting rules? A.4.2
    A.5 Credit Risk Assessment
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    Do credit bureaus exist? YesYesYes
    CAHF
    		A.5.2
    B. Funding Sources for Mortgages and the Secondary Mortgage Market
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    What are the main funding sources for mortgages?B.1
    Retail funding (deposits/other)primaryprimaryprimary
    CAHF
    		B.1.1
    Wholesale funding: loans from other banks or corporationssecondarysecondarysecondary
    CAHF
    		B.1.2
    Funding through securitization of mortgagestertiarytertiarytertiary
    CAHF
    		B.1.4
    C. Housing Microfinance
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    Are non-collateralized housing micro-finance loans offered? Yes  
    Journal of Poverty Investment and Development
    		C.1
    Types of lenders operating in the housing micro-finance (HMF) sector:C.2
    Commercial banksNo  
    Journal of Poverty Investment and Development
    		C.2.1
    Specialized non-depository MFIs Yes  
    Journal of Poverty Investment and Development
    		C.2.2
    NGOsYes  
    Journal of Poverty Investment and Development
    		C.2.3
    OthersYes  
    Journal of Poverty Investment and Development
    		C.2.4
    Level of NPLs (>90 days past due) in HMFC.4
    back to top | Country Data:
    Notes: 2000 estimate
    Notes: 2000 estimate
    Notes: "Rate offered by commercial banks on three-month time deposits."
    Notes: "Rate offered by commercial banks on three-month time deposits."
    Notes: "Rate offered by commercial banks on three-month time deposits."
    Notes: "Rate offered by commercial banks on three-month time deposits."
    Notes: 2000 estimate
    Notes: 2000 estimate
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: Capital gains are taxed at a rate of 15%. The taxable amount is calculated as the sale price minus acquisition cost and other costs (such as renovation and legal).
    Notes: Credit Referencing Bureaus include XDS Data, Hudson Price, and Dun & Bradstreet
    Notes: Credit Referencing Bureaus include XDS Data, Hudson Price, and Dun & Bradstreet
    Notes: First mortgage backed security was approved by SEC in 2013.
    Notes: Funding from corporate bonds.
    Notes: Funding from corporate bonds.
    Notes: Funding from corporate bonds.
    Notes: Ghana Home Loans controls ~50% of the market
    Notes: IFS note: "Rate at which the Bank of Ghana makes advances against treasury bills. A rate of one percent higher is used in discounts of direct credit to business. There are no quantitative limits on credit to banks at the discount rate. The volume of these operations is relatively small. " End of Period
    Notes: IFS note: "Rate at which the Bank of Ghana makes advances against treasury bills. A rate of one percent higher is used in discounts of direct credit to business. There are no quantitative limits on credit to banks at the discount rate. The volume of these operations is relatively small. " End of Period
    Notes: IFS note: "Rate at which the Bank of Ghana makes advances against treasury bills. A rate of one percent higher is used in discounts of direct credit to business. There are no quantitative limits on credit to banks at the discount rate. The volume of these operations is relatively small. " End of Period
    Notes: IFS note: "Rate at which the Bank of Ghana makes advances against treasury bills. A rate of one percent higher is used in discounts of direct credit to business. There are no quantitative limits on credit to banks at the discount rate. The volume of these operations is relatively small. " End of Period
    Notes: In 2016 the government began a project to produce 5,000 units, 40% of which are to be sold at subsidized rates for low- and middle-income earners. As of 2017, 1,500 units were completed
    Notes: In terms of % of number of lenders, not market share
    Notes: In terms of % of number of lenders, not market share
    Notes: In terms of % of number of lenders, not market share
    Notes: In terms of % of number of lenders, not market share
    Notes: In terms of % of number of lenders, not market share. GHL is a non-bank financial institution and mainly sources capital from development finance institutions, such as DEG, a German project financier. In July 2016, a provisional banking license was issued to the mortgage lender.
    Notes: In terms of % of number of lenders, not market share. GHL obtained its banking license in 2017.
    Notes: Property tax is levied at a rate of 0.5 to 3%
    Notes: Rental income is taxed at a rate of 8% for residential properties.
    Notes: Republic Bank and GHL Bank have previously relied on multilateral agencies (World Bank, IFC) to raise funds
    Notes: There is a stamp duty fee of 0.25 to 1% that is paid by the buyer. This is a progressive rate that depends on the value of the property.
    Notes: These are rent-free houses.
    Notes: Treasury Bills discounted.