How to get a mortgage loan from Republic Bank Ghana shouldn’t bother you once you have gone through this article. There is always a time when you could want to move to a new environment. And preferably into your own home and in an environment you cherish above others. This is typical of people who live in a shared apartment. Therefore, getting a mortgage loan could be one step you could take to actualize your dream home.
As you read along, you’ll learn how to get a mortgage loan from Republic Bank Ghana.
About Republic Bank Ghana
In December 1991, Republic Bank first started operations as the Home Finance Company. The company only recently changed its name to Republic Bank in 2018 after being acquired by Republic Holdings.
Republic Bank (then HFC) in November 2007,was appointed Manager of the Public Sector Employees’ Housing Scheme. And Republic Bank and the Government of Ghana put this together to provide affordable housing for public sector workers. Under such a program, the bank has financed over 350 mortgages. The Public Sector Employee Home Scheme, or PS Home Scheme, is the name of this mortgage program.
Republic Bank loans have a maximum period of 20years or until the beneficiary reaches retirement age, whichever comes first. The maximum loan amount shall not exceed GH₵25,000. However, Republic Bank may lend at commercial rates on amounts larger than GH₵25,000, but they will require beneficiaries to make up the difference as a condition of the loan being disbursed. They may offer beneficiaries loans of up to 100% of their income, depending on their ability to repay.
Republic Bank lends money for properties within a 40-kilometer radius of Accra, Tema, Kumasi, Sekondi/Takoradi, or any of the regional capitals. And also any economically workable place the bank permits.
What are the Mortgage Products of Republic Bank Ghana?
Republic Bank offers similar mortgage products to some banks, with the difference mostly in the details regarding property insurance. They include:
1. Home Purchase Mortgage (HPM)
The Republic Bank Home Purchase Mortgage should assist people and businesses in purchasing residential homes for personal or investment usage.
2. Home Equity Loan
This facility allows applicants who own homes or have previously invested in residential properties to release. Or take out equity in those properties in order to build another home, renovate, or improve an existing home. Existing homeowners and businesses with properties are the target market for this product.
Loans may not exceed 80% of the property’s forced sale value (FSV). This facility has a maximum term of 15 years for both cedi and foreign currency loans. The property must have a clear and indisputable title. It is necessary to register the title.
3. Republic Bank Employer Assisted Loan Scheme
It’s an installment loan system based on a deal between the Republic Bank and the employer. Consumer durables (made objects, such as cars or household appliances, that should have a long usable life after purchase), furniture, land acquisitions, and rent advance (also known as rentgage) are all covered under this loan. Only salaried employees of “reputable institutions” are eligible for this benefit. Customers and non-customers of Republic Bank can use this service.
4. Home Improvement Mortgage
The Republic Bank Home Improvement Mortgage should assist applicants in renovating and extending their current homes. The loan can also use it to purchase house furnishings. Existing homeowners and businesses with properties are the target market for this product.
5. Public Sector Employee Home Scheme (PS Home Scheme)
The Government of Ghana (GoG) required Republic Bank to establish an affordable property ownership scheme for government employees in its 2007 budget. All applications for the Republic Bank’s affordable home ownership program will be assessed against Republic Bank’s eligibility and credit requirements.
All current public sector employees who have worked for the government for at least 5years are eligible for the PS Home Scheme. With special provisions for judges, they offer the loan to applicants up to the age of 60.
6. Buy, Build & Own a Home (BHome)
This program is for low-income candidates who can only afford a home if they purchase land and develop it. There are 2 levels to it:
- The “BUY” land portion; and
- The “BUILD and OWN” portion.
The beneficiaries will donate 10% of the land’s cost. The maximum amount available for the “BUY” element of the loan is $15,000 (in cedis). However, beneficiaries are eligible for the “BUILD and OWN” element of the product after making a 50% payment on the initial loan. To build a house, the consumer chooses one of six designs from the Bank. They chose the house when they submit the initial financing application for the “BUY” land part.
The maximum loan amount for the “BUILD and OWN” (Construction) program is $35,000 or the equivalent in cedis. Each component of the facility has a maximum duration of ten years, for twenty years. The land must have a clear and indisputable title that is properly registered. Building permits, development permits, and allowed building plans are all required.
What are the requirements for Republic Bank Ghana mortgage loans?
There are some requirements you must meet in order to get a mortgage loan from Republic Bank Ghana.
General requirements for Republic Bank Ghana mortgage
- A complete and side Republic Bank mortgage application form.
- Processing fee, which refers to a specific product link.
- 1 passport size photograph
- Proof of Relationship (if joint application)
- Power of Attorney which a notary public must witness
- Copy of your identification; passport, driver’s license, national ID.
- For salaried employees: Income confirmation and employment from your employers.
- Your latest three (3) salary slips/ pay stubs showing all deductions.
- For self-employed applicants: provide last 3 years certified audited accounts or at least 3 years copies of your income tax returns.
- Your business profile
- Your last six (6) months bank statements if not a Republic Bank Customer.
- Get a credit report from a recognized credit bureau or credit reporting agency.
- Get your six (6) month’s copy of Bank Statements if not Republic Customer.
- You may open a Homsave account with a minimum of USD500 or GBP200.
Apart from the requirements above, there are other additional requirements in order to secure a mortgage loan from Republic Bank Ghana. They include:
- An offer letter from a Real Estate Developer or Vendor (HPM application only).
- Make a minimum deposit or down payment of 20% of the total cost of the property (HPM application only).
- Valuation report that a Republic Bank recommended Valuer will make for you.
- Title documents to the property.
- 4 copies of site plans.
- Approved Building plans/Development permits for Home Improvement and Home completion Mortgage.
- Bills of Quantities for Home Improvement and Home Completion Mortgage.
What are the mortgage rates of Republic Bank Ghana?
The mortgage rates of Republic Bank Ghana are two (2) namely:
- Mortgage which is up to 10 years with 21% variable.
- Mortgage which is over 10 years up to 20 years with 22% variable.
Read also: Republic Bank Ghana loan- Review
What are their contact details?
For more details, you can get in touch with Republic Bank through:
- Address: No. 35 6th Ave., North Ridge
- Phone: 0302242090/4 or 0556543212 (WhatsApp)
- Email: firstname.lastname@example.org
Republic bank also offers Home Completion and Construction mortgages much like other mortgage providers in Ghana. Having seen their mortgage loan products, you can now choose the one that will best suit your taste. Know that the goal is to get you a new home from the mortgage loan. Therefore, ensure that you can repay the loan easily so that you will not get into more financial difficulty than you were.
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