Prosper Hoetu, Chief Executive Officer (CEO) of the National Homeownership Fund (NHF), has stressed the need for innovative financing solutions and stronger collaboration to transform Ghana’s housing sector and expand access to homeownership.

He said nearly six out of 10 Ghanaians required financial assistance to purchase homes, yet mortgage penetration in the country remained extremely low, with the mortgage-to-GDP ratio estimated at less than one per cent.

Mr Hoetu was speaking at a stakeholder engagement workshop organised by the NHF in Accra, as part of activities towards the development of the Fund’s 2026–2030 strategic plan.

Mr. Hoetu said macroeconomic instability, high inflation, elevated lending rates, currency depreciation, land tenure challenges, and low-income levels had historically limited access to mortgages and discouraged long-term investments in housing finance.

Despite these challenges, he noted that a vibrant mortgage market could significantly boost economic growth by creating jobs, promoting urban development, and stimulating demand across multiple sectors.

Mr Hoetu said the Fund was established to support the development of Ghana’s local currency mortgage market and provide innovative homeownership financing options.

He disclosed that the Fund had already piloted a National Mortgage Scheme in partnership with selected financial institutions to offer low-interest mortgage facilities through a blended financing model.

“Additionally, the NHF has established two Real Estate Investment Trusts (REITs), one of which has successfully piloted a rent-to-own scheme to support individuals unable to access conventional mortgages,” he added.

Mr Hoetu said addressing Ghana’s housing deficit required interventions on both the demand and supply sides, explaining that high construction costs and expensive loans continued to push housing prices beyond the reach of many citizens.

He added that the Fund also provided lower-interest construction financing to developers for building affordable housing units.

The CEO said the NHF was preparing a new five-year strategic direction aimed at de-risking investments in the housing sector and expanding access to mortgages and alternative homeownership products.

Mr Hoetu expressed optimism that strategic partnerships and investments would help reduce Ghana’s housing deficit while contributing to the achievement of key Sustainable Development Goals, including sustainable cities and communities, poverty reduction, and climate-resilient housing.

He called on stakeholders and partners to contribute ideas and expertise towards shaping the future of Ghana’s housing sector.

Dr. Frank Gyamfi-Yeboah, Senior Lecturer, Department of Land Economy, KNUST, called for major reforms in Ghana’s housing sector to improve affordability and expand access to decent housing.

The Senior Lecturer said developers often passed the cost of providing infrastructure such as roads, water, and electricity on buyers, making houses unaffordable for many citizens.

He, therefore, proposed stronger State involvement in the development of new communities, suggesting that the Fund spearhead the creation of a Master Plan Community Developer (MPCD) framework to provide planned communities with infrastructure and fewer land litigation issues.

Dr Gyamfi-Yeboah explained that banks struggled to provide affordable long-term mortgages because most of their funds were short-term deposits.

“To address this, there must be the establishment of a mortgage refinance company to provide liquidity support to banks and make mortgage financing more affordable,” he stressed.

He called for the NHF to be backed by legislation to give it a clear mandate and ensure it functions as a catalyst for affordable housing delivery rather than competing with private developers.

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Ghana's housing future depends on better financing solutions – NHF

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