Flexible pension laws to reduce high mortgage costs

Banks want government to amend certain aspects of the housing law to allow collaboration between them and the National Pensions Regulatory Authority (NPRA) to make mortgages cheaper.

According to the banks, various restrictions surrounding the tier one and tier two pension funds, hinder their ability to assist Ghanaians to access mortgages.

The call comes after President Akufo-Addo in his State of the Nation Address stated that the NPRA and banks will design a system to make mortgages affordable.

But in an interview with Citi Business News Managing Director of HFC Bank, Anthony Jordan insists this can only be realized if government amends the legislation.

“We would have hoped that by now we would have made more progress. What we’re encouraging NPRA and government to do is to find a way of making small changes in the legislation so that we could facilitate more bank mortgages. But for us to get more people to access their pension to back their mortgage loans, it requires a change in the legislation” Mr. Anthony Jordan said.

The HFC Bank boss added, “We have made recommendations and we are hoping that the necessary regulatory authorities will see the way to continue to work with us. Not just HFC but all the financiers in the mortgage industry in Ghana to facilitate the ordinary Ghanaians being able to afford mortgages and owning their own homes.”

Mr. Jordan spoke to Citi Business News at the sidelines of a Memorandum of Understanding signed between the bank and Regimanuel Gray Ltd.

The MoU is among others to provide serviced plot mortgages to Ghanaians.

Source: Citi Business News

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