The Ghana Real Estate Developers Association (GREDA) has disclosed that banks in the country have reduced their mortgage products due to defaults in paying back loans.
This, GREDA says has affected the housing sector, increasing the deficit over the years.
Speaking to Citi Business News, the President of GREDA Patrick Ebo Bonful warned that the situation could get worse if government does not step into the housing market to regulate activities.
He stated for example that banks have stopped giving out mortgage loans over years due to bad loans that come out from mortgage industry.
“The banks are pretending that they are giving mortgages and we are also pretending that that problem doesn’t exist. Check the Bank of Ghana records, they will tell you the statistics,” he said adding that most of the banks have stopped giving out mortgages to the public for years”
Mr. Bonful maintained that the situation is worrying since mortgage finance is crucial to solving the housing deficit challenge.
“We must see this issue as serious issue and address it”, he stressed, explaining that ordinary people cannot buy houses unless it is structured under a reliable financing system
By: Lawrence Segbefia/citibusinessnews.com/Ghana