GHL Bank, has debunked the notion that the exchange rate regime negatively affected the interest for mortgages in 2017.
Most mortgage companies in Ghana price their houses in dollars due to loans acquired in that currency to finance the houses, and the relative stability of the dollar.
Speaking to Citi Business News, the Chief Operating Officer(COO) of GHL Bank, Kojo Addo-Kufuor described 2017 as a good year for the mortgage market.
Mr. Addo-Kufuor recounted that the mortgage industry started facing some difficulties in 2014, but the trend changed last year.
“The exchange rate has been quite stable for the past couple of years. I know in 2014, we went through a bit of a turbulent path. But it’s been very stable, and we have seen a fair bit of demand, last year was another good year, there was a lot of interest,” he said.
He disclosed that there was some surge in the interest by individuals who wished to have their own homes.
“A lot of individuals came to see us about taking mortgages to buy property. It’s a universal need, people don’t just look at the exchange rate. They look at the house they are going to buy,” he said.
Touching on the need to reduce the housing deficit, Mr. Addo-Kufuor stated that the dollar is an important component that must be looked at in the mortgage industry.
“Whether you like it or not, we do live in a dollarized economy and the prices just tend to move in step with the dollar, so people do take that into account and make the move,” he stressed.
Source: Citi Business News