National Mortgage Scheme (NMS)

The objective of the NMS is to develop standardised mortgage schemes that are “white-labelled” by banks and SDIs for sale to the public. To that end, NMS was set up in 2018 with three participating banks and piloted a solution to address the challenges of homeownership in Ghana. The NMS is structured around the blended finance concept where NHF provides concessionary funding.

This is matched equally with commercial financing by the participating banks contributing at market rate (T+3%). During the pilot phase, this resulted in a lower blended rate of 12% p.a. to underwrite mortgages for qualified applicants and 15% for construction finance. NHF charges a 2% interest rate to cover the operational cost of the Fund. Participating banks are responsible for managing the Scheme but can appoint subsidiaries or independent entities to manage the Schemes. In addition to the lower mortgage rates achieved through the blended finance concept, the Scheme also has flexible underwriting criteria, which provides a loan-to-value ratio of 100%, a loan tenor of 20 years and the possibility of a joint application.

During the pilot phase, the National Homeownership Fund (NHF) partnered with three (3) banks, namely GCB Bank Ltd., Stanbic Bank Ltd., and Republic Bank Ltd., to set up the NMS to underwrite local currency mortgages to Public Sector workers. This product will be more competitively priced than normal mortgages with the objective of making mortgages accessible to the middle class.

 The standardization will also help the development of the secondary mortgage market. Through this scheme, over 1000 mortgage applications have been approved by participating banks. Achievements:

 1. Model Tema Community 22 Mortgage Arrangement with GCB Bank Ltd. - 300 Mortgages
 2. Asokore Mampong Affordable Housing Mortgage Programme - 150 mortgages
 3. Rehoboth Partnership - 200 mortgages

National Homeownership Fund

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