Republic Bank Mortgage Manager Urges Ghanaians to Build Small and Expand Gradually
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Prospective homeowners in Ghana are being encouraged to avoid taking on oversized loans and instead build homes in stages. Republic Bank says incremental construction can make homeownership more manageable as household incomes grow.
Prospective homeowners in Ghana have been advised to align their housing projects with their current income and financial capacity rather than taking on large loans to build expensive homes at once.
Frank Oppong Yeboah, Manager in charge of Mortgage at Republic Bank, said incremental housing development can provide a more sustainable route to homeownership. Speaking at the launch of the Republic Bank JoyNews Habitat Fair on August 11, he encouraged Ghanaians to start with what they can afford and expand their homes as their incomes increase.
The approach could help prospective homeowners reduce their initial borrowing requirements and limit the financial pressure associated with servicing large construction loans. Rather than waiting until they can finance an entire house, households can develop their properties in stages according to their changing financial circumstances.
The advice comes as affordability remains a major challenge in Ghana's housing market, where construction and financing costs can make it difficult for households to complete projects in a single phase.
For developers and mortgage providers, incremental construction also highlights the potential for financial products that accommodate homeowners at different stages of the building process.
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