The Ultimate Guide to Installment Payments | Buying a House in Ghana

Buying a house in Ghana with installment payments is a viable option being introduced by some real estate developers. With installment payments, you can spread out the cost of buying a house over time, making it more affordable for you.

In this post, we will first share what is on offer at Regimanuel Satellite City and also provide information on other installment payment options made available by some real estate companies in Ghana; their pros and cons, and provide tips on how to choose the most suitable option for you.

Installment Payment Options at Regimanuel Satellite City.

Tips for Choosing the Best Installment Payment Plan

1. Compare the different installment payment plans offered by real estate developers. (check out table 1.2)
2. Check if there are interest rates and the terms of each plan to determine which one is the most affordable for you.
3. Make sure you understand the terms and conditions of the plan you choose, including any additional fees and payment schedules.
4. Determine if you meet the eligibility requirements for the plan you want to use.

Table 1.1 (shows installment payment options offered at the Regimanuel Satellite City housing development in Accra.

Developer	Project	Payment plan	Interest Rate
Regimanuel Gray	Satellite City	40% deposit 40% at lintel 20% after completion	0%
Regimanuel Gray	Satellite City	40% deposit remaining spread up to 24 months	0%

The Payment Plan Options for Buying a House in Ghana

1. Developer’s Payment Plan: This plan is usually offered by some real estate developers as part of their sales strategy and may not exceed 18 calendar months. Under this plan, you make an initial lump sum deposit and spread the remaining in agreed intervals with the developer. In some instances, a monthly payment schedule may be agreed upon with the developer following the initial lump sum deposit until the full cost of the house is paid off. There are usually no interest charges on this plan. Interest charges may only apply if the buyer defaults on the agreed plan. This may be part of the terms and conditions, which you should carefully study before you start.
2. Rent-to-Own Plan: In this plan, you rent the house for a certain period and then own it after you have paid the agreed amount, which is usually spread monthly. The payments you make during the rental period go towards the purchase of the house. These plans can also come with different terms and conditions. In Ghana, this option is not usually offered by real estate developers. It is mostly available with housing developments which are funded (fully or partly) by the Government.
3. Structured Payment Plan: Where the developer is not openly offering a payment plan, the prospective homeowner could formally write to the developer to propose a payment schedule that he/she commits to make accordingly. This is a new but growing trend in the industry. It is advised that you critically analyze the details of the agreed terms to ensure that it is suitable for your financial circumstance; and have both the seller and buyer sign off with their respective witnesses.

Key features of the Payment Plan Options

To help you choose the right installment payment plan, we’ve compared the key features of each of these plans in the table below:

Payment Plan	Interest Rate	Length of Plan	Eligibility Requirements
Developer’s Plan	No	Usually doesn’t exceed 18 months.	Requires an initial deposit of between 30% – 40% (of the cost of the house)
Rent-to-Own Plan	Varies	Varies and may last for years. You can occupy the property while paying for it.	Requires proof of income, creditworthiness, and an initial deposit.
Structured Payment	Negotiated	Usually doesn’t exceed 24 months.	Requires an initial deposit and may require a guarantor.

Comparison of Installment Payment Plans by some Real Estate Developers in Ghana

To help you choose the right installment payment plan for your next house, we’ve compared the key features of payment plans currently being offered by some real estate developers in Ghana. (in the table below):

Developer	Payment Plan	Maximum Tenure	Project
Denya Developers	25% down-payment; 15% quarterly.	– up to 18 months	The Pavilion, Cantonments
Regimanuel Gray	40% down-payment; spread the remaining till completion.	– up to 24 months	Satellite City, East Legon Hills
Capemay Properties	A spread of payments for 6-12 months.	– up to 12 months	The Signature, Accra Mall
Devtraco Plus	20% down-payment; spread the remaining till completion.	– up to 12 months	The Pelican, Cantonments
Indigo Homes	A spread of payments for 6 months.	– up to 6 months	Oyarifa Park, Oyarifa
Appolonia City	20% down-payment 18-24 months spread.	– up to 24 months	Appolonia City, Oyibi

Bank Financing (Mortgage)

Bank financing is another installment payment option available in Ghana. It involves obtaining a mortgage from a bank or other financial institution to finance the purchase of a house. The bank sets the interest rate (either variable or fixed) and payment terms based on the applicant’s credit history and other factors.

Currently, The Republic Bank, in Ghana, is offering the most competitive interest rates (at 25% p.a – November 2023)

Bank financing typically offers higher interest rates than developer & structured financing and the application process is also more involving. The approval process can take longer. It is advisable to compare the various plans based on what the banks are offering in terms of Interest Rate, Down Payment, Repayment Period, and the Maximum Amount you can qualify for.

Pros and Cons (Developer Financing vs Bank Financing)

Developer Financing Pros:

• Faster approval process
• A more straightforward application process
• No need for a credit score

Developer Financing Cons:

• The stress of finding a credible developer
• May require a large down payment

Bank Financing Pros: 

• Larger maximum amount (depends on your proof of income)
• Longer repayment period

Bank Financing Cons:

• Lengthy approval process
• Stringent credit score requirements
• Additional fees may apply
• Interest rates may be uncertain in volatile economic situations
• May require a large down payment

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