Lower interest rates to facilitate access to real estate acquisition

Press releases of Tuesday, November 2, 2021

Source: First National Bank

Director of Marketing and Corporate Affairs of First National Bank, Delali Dzidzienyo

The conversation about the housing deficit in Ghana is still alive today as housing demands go unmet, in part due to the availability of resources to increase supply and then the inability of the wider population. to access funds to build or buy. For everyone involved in the entire housing value chain, the availability of funds is a critical need, but the cost of borrowing these funds depends on interest rates.

Higher interest rates can increase the overall cost of provision and acquisition. Lower interest rates can reduce the overall cost of these expenses. This means that changes in interest rates can impact changes in consumption and investment spending, and therefore aggregate demand.

Typically, interest rates are influenced by inflation and overall economic conditions in the country. While the government of Ghana may be doing a lot to alleviate the fragility of the economy; volatile interest rates and high-risk investments within the economic ecosystem, real estate finance, vendor and property acquisition players will need to take action and adopt initiatives to ease the burden on the general public. One of those players in the financial system is the First National Bank, which recently announced the reduction in interest rates on all home loan products as part of the Year of Home Ownership-YOHO campaign of a year.

Applicants for any of the bank’s home loan products can now get up to 1.5% off the interest rate on any amount. This has been confirmed as one more approach to make it easier for more Ghanaians to access the property ladder as the bank closes the curtains on the Year of Homeownership – YOHO 2021.

Mr. Delali Dzidzienyo, Head of Marketing and Corporate Affairs at First National Bank, explained that this also responds to the many requests received after the YOHO initiative launched earlier this year. Delali said: “We are delighted with the many requests that have been received since we made this bold statement to help Ghanaians both at home and abroad acquire property with our range of home loan offerings. . Even though we are aware of the huge housing deficit and the fact that the acquisition of real estate affects many people, the massive adoption of this initiative reinforces the need for all actors in the housing sector to trigger actions for remediate “.

While there are interventions such as optimizing the property acquisition process, innovations with building materials such as NELPLAST’s plastic waste brick production can bridge the housing gap gap.

Ultimately, tackling the hurdle of high interest rates, for example, will have an immediate impact on property acquisition in Ghana.

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