President John Dramani Mahama has directed the Minister of Finance to allocate GH¢1 billion in the 2027 Budget. This substantial sum will serve as the government's contribution to a GH¢3 billion National Housing Fund (NHF).
This GH¢1 billion will be placed into the fund to finance housing projects on a revolving basis. The goal is to expand access to affordable housing for Ghanaians. The President made this announcement on Wednesday, October 7, 2026, during the maiden National Conference on Housing Finance in Accra.
Ghana faces a significant housing deficit, currently standing at 1.8 million units. This shortfall highlights a critical need for increased investment and innovative financing solutions in the housing sector. The government's commitment aims to boost homeownership and alleviate the financial strain many citizens face in securing adequate housing.
President Mahama stated, "I have directed the Minister of Finance to allocate one billion Ghana cedis in next year’s budget as government’s contribution to the three billion revolving fund for the National Housing Fund." He emphasized that Ghana's housing challenge extends beyond just the number of available homes. It also includes the ability of households to secure financing on affordable terms.
The new allocation and the broader NHF aim to address long-standing issues within Ghana's housing market. Many self-employed individuals, such as traders and artisans, struggle to obtain mortgages due to a lack of traditional payslips. The President urged financial institutions to develop alternative methods for assessing repayment capacity, including savings histories and verifiable business cash flows. The NHF's Mortgage Scheme currently offers cedi-denominated mortgages at 8.4 percent, a reduction from 13.5 percent. Developer financing under the scheme is set at 10.4 percent. Over 1,000 people have already become homeowners through the Fund and its partner financial institutions.
Beyond homeownership, President Mahama also introduced a new NHF program called Easy Rent. This initiative aims to tackle the burden of large upfront rent payments. Under Easy Rent, the NHF will pay the initial rent advance for a worker, who will then repay the amount in monthly installments. This program seeks to ease the financial pressure that substantial rent advances place on household budgets, freeing up savings for other essential needs like education or family businesses. This new program complements the existing National Rental Assistance Scheme, which also provides rent advances with monthly repayment options.
The government's focus on housing finance is a critical component of its broader economic strategy. Adequate housing is essential for social stability and economic productivity. This investment could stimulate the construction sector, creating jobs and driving economic growth. Decision-makers will closely watch the implementation of these programs and their effectiveness in reducing the housing deficit. The success of these initiatives will depend on efficient fund management and the active participation of financial institutions in developing inclusive financing products.
The allocation of GH¢1 billion in the 2027 Budget signals a strong commitment to addressing a fundamental need. This move could significantly impact the lives of many Ghanaians. It also sets a precedent for future public spending priorities. The market will observe how these funds are deployed and their impact on housing affordability and availability across the country.