The reason for this is simple. The lowest risk investment a person can make is to buy a treasury bill. The expected return on a treasury bill in the USA is less than 2% based on complicated calculations so banks can loan money at lower rates. In Ghana, the return on a treasury bill is about 17% so banks cannot offer lower rates than they can borrow themselves. So for them to offer 11% is amazing. However its still tooo much if you want to finance a single house. ONly use it if you are into building real estate
That's how the western system has made life difficult for developing countries. We take loans at astronomical interest rates. The banks behave as if the people work in the country but are paid in US currency. Crazy.
Very informative. I have to admit the new generation of Ghanaian RU-vidrs are re-offering Ghana to us through the lenses of the West. And it helps a lot. More grease to your elbows @Vanessa Kanbi
I know the Mtg rates seems high at 11%, but keep in mind, 30 years ago in the USA and the West, Mtg rates was 15-20%; these rates have come down quite a bit. I'm saying this because Ghana, like many countries on the continent are developing countries and obtaining funds are very high. It will take time, but these rates will come down too.
I must Say Republic Bank is Probably one of the best from experience and interest rate wise There Problem is there isn’t enough competition to drive those high interest rates down This is why there need to be More Banks or Credit Union and Even Bank for the Diasporas Let’s make it Happen!
Guys, an idea is to buy your land, build 2 bed 1 bath guesthouse first and live in that while you build your house slowly. A guest house and land should be around 60 000 USD anywhere on the continent. As you save money build your house even if it takes a decade. Avoid loans at all costs 😅
Vanessa Kanbi is legendary! Although I have no personal affiliation with Ghana, I watch her videos because I have a passion for Africa in general, and some of my closest friends are Ghanaian so I'm sure I'll visit some day. But the rate at which I watch these videos it as if I'll be buying land there as I know so much about the place! haha
In today's world, you are born with a nice piece of land you are set for life. I know plenty of people that got some building in the town center they inherited. They never had to work a day in their lives. They are set for generations.
Why are you comparing rate in Ghana to the United States? Another factor that goes into determining the rate is the risk factor. Ghana is a risky environment when it comes to mortgage financing, hence the rate is relatively higher. Albeit 11% interest rate is still high, that's true
If you are looking to build a property portfolio, taking a mortgage is certainly one of the ways to do so. However if you plan to build a single unit home, its worth saving up to build it yourself as it works out much cheaper and you get to build to your taste. Mortgage still comes in handy with a completion loan if you are stuck at a point having to decide between paying another years rent in advance and abandoning your project due to lack of funds.
Hi Vanessa, You are doing so well with content....keep it up. Am very grateful for you starting this channel in Ghana, am in Ghana but still learning a lot
Thank you Vanessa for providing us with lots of different options for living in Ghana, you do alot of work to provide knowledge from all different aspects and perspectives. Your work is appreciated love from NY.
@@GoddardEmpire Hello, I hope this finds you well. I want to take this opportunity to network with you and introduce you to our great Real Estate portfolio in Ghana. With our partnership with some Ghanaian banks, your future home in Ghana can be financed via a mortgage over 15-20years. You can send me an email MilicentA@tulipegroupe.com
11.9 % low? And for government workers only? He made some really valid points but in order for ordinary Ghanaians to enjoy they need to reconsider the wages and revisit the interest rate they are requesting. Great work Vanessa 👍🏾
If you are into real estate (like me) Mortgages are the way to go. But you are right that just one house it’s better to build without getting into dept.
NEVER starve yourself. Your brain requires minerals and vitamins that your body does not make and must be derived from your food. Eat a healthy diet of plant based vegetables, fruits, proteins and carbs and ALSO SAVE your money. ❤️
This is not clear cut. It depends on various parameters including int rate. For business purpose, for a good rate, you can take mortgage and get return on your investments. The time and starvation it will take average citizen to build a decent home (4 br, 2 or 3bth) is a lot. Interesting conversation for Africans. It's up to individuals to make the right decision according to their situation (self build or take mortgage)
People who are complaining about this interest rates seriously need to look at the history of mortgages in the Western countries.... Mortgages are a new thing in Ghana and it is a risk for the institutions just like 30yrs ago in the UK and US. Good for you if you have amazing credit and are not a sole trader. Stop bashing and go research. There are countries in Europe where you can't even OWN your own house. You can only rent rent and tax is min 40% if you try to be an entrepreneur. Ghana still has a very informal economy... Cash rules... So abeg be patient... And sympathetic.
zoe is most western countries YOU CAN'T own a home , there is that. 11 per cent is jyst slavry but you missed the part where most folk insisted. buy that land and build your own 3 bedroom place
It would be cheaper and easier for an American to get financing from a US bank at those interest rates. Wow! 11%! I feel for Ghanaians dealing with these loans.
@@phosoa8965 that’s not really the relevant issue here my friend. The issue is how funding is perceived and regulated in Ghana. I’ve seen entrepreneurs such as the Ghanaian gentleman who invented the bamboo bike talk about how financing for Ghanaians is terrible due to national regulation but for foreigners it’s much easier and interest rates and taxes are much lower. The internal financing system needs to protect and promote local interest.
@@IceQueenSW i sincerely agree with you, i understand foreigners are more trusted than our own which is a shame, just speaking proper English alone allows me a fellow Ghanaian too many privileges, we don't believe in each other, but also at the same time there are external forces preventing africa too industrialise properly as it would put Europeans into poverty almost over night
Vanessa, thanks for another enlightening and informative video. I’ll pass on the bank loan; 11/12% is much too high. Great information, though. Thanks.
A few years ago, I took a decision to move back to Ghana and started visiting the country to the point where I've been doing on average 3 visits a year..........COVID-19 BC!! At the onset of my visits and among my relocation strategies, I explored the option of taking up a mortgage in Ghana to purchase a home and discussed this with Ghana Home Loans (GHL). What transpired thereafter reaffirmed the warnings I'd received from many knowledgeable people about mortgaging in Ghana, including my very own relative who'd worked in a bank in Ghana. The message before and after my brief dalliance with GHL was simple - Avoid mortgage companies in Ghana like a plague!!! For starters, if you're used to the mortgage system in places like the UK, the concept of a "Fixed Rate" would be well familiar. In Ghana......or at least with GHL, a fixed rate exists by name only. If you sign a contract that says you're on a 5 year fixed rate for example, the rate could be changed at any given time and there's nothing "fixed" about it. A bizarre realisation for me was when I was informed that even though an interest rate and other terms had been agreed in principle with me during the application stage, an Assessor or Underwriter could alter that at their discretion. And so if for instance, I'd been sold a 5 year fixed rate of 1.5%, when my application went to a GHL Assessor or Underwriter, they could choose to have that rate change to 10.5%!! This and many, many other flaws in the GHL offering made me walk out of their offices, condemning them that they had no proper understanding of what mortgaging entailed. My brief experience with GHL made me understand why many had advised me that mortgaging in Ghana was akin to tying a noose around your own neck. People, avoid mortgage companies in Ghana like a plague.......if you wish to live the rest of your life stress-free and not in financial bondage. My advice - buy land and build for yourself if you can. I did that and have done so on multiple occasions since my encounter with GHL and upon reflection, that was the best thing I could have ever done.
@@MoneyMikeda9mm yes, after my encounter with GHL, that was what I concluded too and advised many others to take loans in their countries of residence in the diaspora (although remember, not everyone resides in the US and not everything revolves around the US). It's cheaper, reliable and more secure than taking a mortgage in the volatile Ghanaian market.
Hi sis, great work 👍. This is very exciting and Educative video for all Ghanaians at home and blacks around the world who want to come home to Ghana. Thanks from Nevada.
@@nasto4u850 sorry bro for replying your question late. Home will always be home because that is where the genesis is from. I attended schools in Takoradi, Elmina, Koforidua,Sunyani and Accra. so I have friends all over the country. But with Fanti and ewe back ground. Thanks from Nevada.
Best option, if one wants to borrow, is to pay the loan off early. I have looked into getting a dollar mortgage and while I was sick to my stomach at the rates, it's understandable. It's a "DEVELOPING" country. Instead of paying the minimum payment, pay your mortgage every two weeks. That will squeeze in a few extra payments every year. If you're american and getting a tax return, throw your return at your mortgage. Less time in that rate means less money paid in interest. I will do the math to get the mortgage paid off in 8-10 years.
You videos are so divine. I’ll be leaving to Ghana Mid November this year to look at properties and this is exactly what I needed to hear. Thanks Queen 👑!
Haha why on Earth would this guy say “we’re trying to attract the diaspora then say mortgage rate is 12%” it makes no sense! The diaspora can borrow at like 2% overseas. Why would they want to pay 12%
Its best they take out a loan overseas to build here and use the rental income to service the loan. This works out much cheaper and you are guaranteed the structure if you good quality.
hahahah 🤣🤣🤣, I will do you one batter: what the fuck? mortgage at 11.5%. they complain ghana is hard. well, these are the suckers making it hard for the people. interest vampires 🧛♀️
Good work. The problem for native Ghanaians is that their currency is too weak when compared to the US dollar, pound sterling and the euro. No wonder Ghanaians have to pay 11.5% interest rate. The authorities in Ghana need to fast track the development of infrastructures, health, social, environment, education, economic, job opportunities etcétera. Export needs to improve and imports need curtailing. Those activities would improve the gross domestic product (GDP) and the natives standard of living. The constant depreciation / devaluation of the Cedí just hurt the poorer natives. However, only a few elites at the top benefit. Thus African leaders should do everything to lighten the burdens on their citizens. The time has come to create a very strong African currency on the Continent.
Very true. There are so many questions, like why do we allow others to mine our gold and pay us a cut, why don’t we mine it ourselves? Why don’t we have a gold reserve? We’ve been in the Union for years, what have they actually done for Ghana? Our roads are still terrible!!! Floods are an issue and we still have light off in this day and age. Even WiFi is a big hit or miss. I work for a company here in London that sells Ghanaian made products for a premium, I’m certain they didn’t pay a premium for the labour or materials. I have no idea what deals are being struck but the people are certainly not benefiting from it. Government officials seem to be doing just fine though. If they want diasporas back they need to act like it.
Africa needs a stable coin for diaspora to hedge agaisnt volatile currencies like cedis and naira. This will help for global financial impact that diaspora can contribute to
Even though im the target market for such mortgages i dont know if mortgages are something we should be pushing. I think people should SAVE and buy land outright. Mortgage=debt and reposition if things dont work out in the long run.....western systems need to be eradicated in Africa we need our own systems. Consumerism and materialism arent things that should be welcomed in Africa. Stay modest stay humble just speaking generally.......just an opinion... .
Mortgages are a necessary evil, if you want instant gratification. I lived in the States for 30 years, where it's all about meeting your needs now. However, this can get you in trouble when you take out a mortgage loan, can't service it because you lose your job. Results: your house is foreclosed, your credit is messed up, which you may never be able to recover from and you are in debt. At 11%, the interest rates are too high, which makes it cost prohibitive.
Republic Bank is amazing !! I have been banking with them when they were still called HFC Bank. For mortgages Republic bank. For TBills and financial security CBG is the way to go.
good video, perhaps one of the bet you have done ---- I do not buy the guys argument at all -- in the UK and US interest rates are below 1% so has does this guy justify a USD interest rate of 11.5% and how many afrikan/ Black people in Ghana earn in USD?? about 0.00001 of te population so the USD interest rate charge is nonsensical ---- it is pure greed that operates in Ghana and unlike the West where you have in some cases 25 years to repay the mortgage, in Ghana has to be paid on something like 10 years----- how can you pay $125,000 in 10 years!! ---- plus the cedi rate of 24.5 % is just ridiculous as the average and I mean average Ghanaian takes homes less than 4,000 Ghana cedis a month -- and that is gross so if we take taxes and expenses like school fees and medicare how is this Ghanaian going to get a mortgage of 100,000 Ghana cedis?? To be frank the whole mortgage business in Ghana is at best a scam that needs to be seriously re-examined and this is why 80% of Ghanians cannot afford to own their own home and are at the mercy of wicked unscrupulous landlords!! Ghana has a long way to go!!
@@tvs9978 that may be so but ask yourself apart from the 'big men' how many of these public civil servants get paid more than 4,000 Ghana cedis to qualify to get a mortgage at 11.5% and that is why corruption is rife in the public so called service in Ghana. I have a copy of the latest Auditor General report for 2019 and in this report , it said that public civil servants who are supposed to be serving Mother Ghana and the public stole more than 200 Million USD. --- Do you know what 200 million USD can do for Mother Ghana!!! like fix our disgraceful roads, build better well equipped schools, getting cutting edge medical equipment and so forth. So my brother or sister gyae wa'sem!!
My high credit score, high credit limit, high mortgage balance (just started a 30 year mortgage), and veterans benefits would all be a loss if I move to Ghana. I would be starting over from scratch, with a wife and kids.
Why would you lose you veterans benefits? You can use your high credit score and credit limits to borrower money cheaply and become the lender in Ghana. It's simple arbitrage.
I’m from Antigua but we in the west need to remember that our banks are giving us very little on our savings and the banks are using our funds to invest in stock market to generate extra income therefore with all of that it’s allowing the bank to make extra and charge less interest on mortgage. in Africa n other developing countries the banks primarily use depositors savings to loan out money and out of that loan they share the interest with the savers therefore u may find that saving account in Africa may give u a 5% interest on your deposit
Africa's problem is some of these institutions taking undue advantage over her. I mean how can a developing country pay that high interest rate? I mean how. Some even go as high as 30%
If you think about it taking out a mortgage of 50 000$ to pay back in 20 years at 11%, just take it if you live in the west and cannot get one in the west and just work hard and pay it off in 2, 3 or 5 years.
Yep you right those are my two option that I’m going use either pay cash make an offer with it take it or leave it or get my loan here in the USA and pay it off with that loan I will just be owing the bank back here in the USA
Hi Venessa, seriously need to contact u confidential. UK & looking forward to visiting after covid. Need to get in touch asap. Ta for super contents, big fun of urs. Keep up the good work.
Hoping to attract the diaspora and yet you dont even have a website or electonic option for the diaspora to find out more or to apply for a mortgage...please do something about that
Hi Vanessa. Good day to you. There is just one operative left out, for me. What is the lowest to highest amount that can be mortgaged. And do they also loan monies outside of purchasing property or land?
11.9% on a loan on Ghanian currency may be reasonable. But if they are charging 11.9% on USD denominated loans then that would be high for overseas investors.
another excellent content. however, I have never heard of a mortgage rate at 11.5% in US dollars. even those with poor credit history pay less than 3.5% on mortgage rate. I don’t see how this high interest rate would attract non-resident Ghanaians. I don’t think he completely comprehend what risk is in this scenario. a house appreciate over time and it could be foreclosed for nonpayment, so what is the risk assessment that justifies 11.5% hike? it seems they are treating mortgages like a personal loan without collateral. i had thought about getting a mortgage in Ghana to complete my house but knowing the best rate 11.5%, I change my mind. this is pure greed.
These videos are so helpful!! I’m living in Japan right now (check my channel) but my husband and I are thinking about Ghana next! Or some other country in Africa!
