Vision1 FM                       Light FM                         Light TV

Credible mortgage system from pension funds coming up – Atta Akyea

Government has hinted of plans to create a credible mortgage system from the current pension schemes in the country.



According to Works and Housing Minister, Samuel Atta Akyea, the policy is intended to ring-fence about 30 percent of pension funds as capital for real estate developers to build houses for workers which will be purchased with a mortgage arrangement.

The cost of the buildings will be spread thinly for a ten to twenty year period.

Speaking to Citi News, the Abuakwa South MP said government is serious about tackling the housing deficit.

“We need what we call a credible mortgage system in which you can use about 30 percent of your income to service a mortgage loan but you can never get that arrangement in place unless we touch the pension fund.

“I am even submitting that we can touch the first tier, the second and the third then ring-fence about thirty percent of all the monies and give them to the bank at a very competitive administrative rates.”

NPRA, banks discussing effective mortgage system

Affordable housing is a major challenge for Ghanaians as the country’s housing deficit is estimated at about 1.7 million housing units.

In a bid to address this challenge, President Nana Addo had at the State of the Nation Address announced government’s plans of initiating policies required to drive down the cost of mortgages.

The President had disclosed that, deliberations are ongoing between the Pensions Regulatory Authority (NPRA), and banks, to design an effective mortgage system for Ghanaians.

This, he said, is aimed at making access to houses affordable for the majority of Ghanaians in the middle-income bracket.

“Discussions are ongoing between the Pensions Regulatory Authority and the banks to underwrite an effective mortgage system. This will facilitate access to housing for the ordinary Ghanaian,” he said, adding that government is also working to attract private investors into the housing industry.

President Akufo-Addo was optimistic that, creating an enabling environment for the private sector will encourage investors to channel their funds into the housing industry.




Source:citifmonline.com/Ghana

More Politics

Gov’t to audit mines – Amewu Gov’t to audit mines – Amewu 2018-06-22 - Minister of Lands and Natural Resources, John Peter Amewu, has...
We Will Deal With Corruption Without Party Consideration – Nana Addo We Will Deal With Corruption Without Party Consideration – Nana Addo    2018-06-22 - President Akufo Addo has reiterated his pledge that the country’s...
19 factories completed so far under 1D1F – John Kumah 19 factories completed so far under 1D1F – John Kumah 2018-06-21 - The Chief Executive Officer of the National Entrepreneurship...
Selorm Adadevoh is MTN new CEO Selorm Adadevoh is MTN new CEO 2018-06-20 - MTN has appointed Selorm Adadevoh as the new Chief Executive...
NPP Replies Mahama Over His Claim of Incorruptibility And Unprovoked Attack On Akufo-Addo NPP Replies Mahama Over His Claim of Incorruptibility And Unprovoked Attack On Akufo-Addo 2018-06-20 - The ruling New Patriotic Party (NPP) is utterly shocked at claims...

 

More News..

Doctor jailed 10 years for defrauding NHIS Doctor jailed 10 years for defrauding NHIS 2018-06-22 - A former Medical Superintendent of the Essikado District Hospital,...
Snail Seller Takes Blame For Mahama’s Death Snail Seller Takes Blame For Mahama’s Death 2018-06-21 - The snail seller from whom Major Mahama asked direction to Denkyira...
NADMO seeks legal backing to demolish structures on waterways NADMO seeks legal backing to demolish structures on waterways 2018-06-20 - The National Disaster Management Organization(NADMO), is seeking...
Residents trapped as Monday downpour ‘submerges’ Accra Residents trapped as Monday downpour ‘submerges’ Accra 2018-06-19 - Residents in various parts of Accra were trapped in their homes...
Ibrahim battles Bauxite Case Ibrahim battles Bauxite Case 2018-06-18 - Exton Cubic Group Limited, which has links to Ibrahim Mahama,...