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Average interest on mortgages is 33.6 percent – BoG report


The average interest rate for home loans among commercial banks is 33.6 percent.

The figure which is according to the Bank of Ghana’s Annual Percentage and Average Interest report, indicates a marginal increase compared to the 33.3 percent recorded as at the end of January 2017.

According to the report, GCB Bank offers the highest interest on mortgages.

Potential home buyers would be charged as much as 40.3 percent on loans they contract from the bank.

Meanwhile Bank of Baroda will offer you the lowest interest rate on your home loans as you will be charged between 24.5 and 28.8 percent.

Of the fourteen banks that offer mortgage loans, GCB Bank tops with the highest interest on mortgage loans with 40.3 percent.

It is followed closely by Bank of Africa with 36.6 percent, the Royal Bank with 35.5 to 40.5 percent and Cal Bank with 35.3 percent.

Barclays Bank, Sahel Sahara Bank and Ecobank come in at the fifth, sixth and seventh positions with 35.1 to 39.1 percent, 34.5 and 34.1 percent respectively.

The eighth, ninth and tenth highest interest rates on home loans are offered by UT Bank, Prudential Bank Limited and FBN Ghana with 34, 33.6 and 32.8 percent in that order.

However, Bank of Baroda will offer you the lowest interest rate on your home loans with 24.5 and 28.8 percent. Following closely are HFC Bank, Zenith Bank and Stanbic Bank with 31.1, 29.0 and 28.3 percent respectively.

Meanwhile seventeen banks, according to the BoG report, do not offer mortgage loans.

They include; Access Bank, ADB, Energy Bank, First Atlantic Bank, Capital Bank, Fidelity Bank, First National Bank.

Others are; GN Bank, GT Bank, NIB, Omnibank, Sovereign Bank, Standard Chartered Bank, SG Bank, UBA, Universal Merchant Bank and Unibank.

By: Pius Amihere Eduku/

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