The National Housing Fund (NHF) has significantly reduced the interest rate on its National Mortgage Scheme from 13.5% to 8.4%. This substantial cut aims to make homeownership more affordable for many Ghanaians.
This reduction also includes developer financing, which now stands at 10.4%, down from a previous rate. NHF Chief Executive Officer, Prosper Hoetu, announced these changes at the National Conference on Housing Finance on Wednesday, October 7, 2026. He attributed these lower rates to prudent economic management and a blended financing arrangement between the NHF and its partner financial institutions.
Ghana faces a significant housing deficit, making access to affordable housing a critical economic and social challenge. High interest rates have long been a barrier for many citizens seeking to purchase homes. This rate reduction by the NHF aligns with broader government efforts to stimulate economic growth and improve living standards. Previous data indicates that mortgage affordability remains a key constraint in the real estate sector, impacting both supply and demand.
Prosper Hoetu stated, "Last month, the Fund resumed lending under the National Mortgage Scheme at an interest rate of 8.4 percent, down from 13.5 percent. Developer financing is now at 10.4 percent." He added, "This has been made possible through prudent management of the economy and a blended financing arrangement between NHF and our partner financial institutions. The response has been very encouraging." The NHF has observed a considerable increase in applications from prospective homeowners who previously could not qualify for mortgages.
The immediate implication is increased access to housing finance for a wider segment of the population. This could stimulate demand in the housing market and encourage more construction activity. Decision-makers will closely monitor the uptake of these new rates and their impact on the housing deficit. The NHF plans to increase its investment in the scheme to accommodate more applicants, indicating potential growth in the mortgage sector. This initiative could also attract more financial institutions to participate in the programme, further expanding housing finance options.
Mr. Hoetu emphasized that the housing challenge is not just a social issue but also crucial for Ghana's economic development. The NHF has successfully piloted both the National Mortgage Scheme and the Rent-to-Own Scheme. Over the past 18 months, these schemes underwent review to enhance their affordability and accessibility. The current rate reduction is a direct outcome of this review process.
The National Conference on Housing Finance, convened by the NHF alongside the Ministry of Finance, Ministry of Works, Housing and Water Resources, Ministry of Local Government, Chieftaincy and Religious Affairs, Bank of Ghana, and Shelter Afrique Development Bank, aims to address these challenges. The two-day conference seeks to explore ways to expand access to housing finance and tackle constraints on housing supply. It also focuses on promoting green and climate-smart housing solutions.
Furthermore, the conference will discuss increasing the use of non-interest banking and green financing for housing projects. In August, the NHF partnered with Shelter Afrique Development Bank and the Ministry of Works, Housing and Water Resources to conduct a rapid diagnostic assessment of Ghana's housing sector. This assessment used Shelter Afrique Development Bank's VIRAL Diagnostic Toolkit, which examines Vision, Institutions, Regulations, Actors, and Local initiatives within the housing ecosystem. The diagnostic report has been completed, and a high-level summary will be presented at the conference. The NHF intends to develop a Country Housing and Urban Development Partnership Strategy (CHUDPS) based on these findings. This strategy aims to create a robust framework for mobilising resources and investment into Ghana's vital housing sector.