Q. Why are mortgage rates increasing in Ghana?

In Ghana, mortgage rates are increasing due to a combination of factors, including the country’s high inflation rate and the central bank’s efforts to control it. The Bank of Ghana has been raising its policy rate to combat inflation, which has led to higher interest rates on loans, including mortgages. Additionally, the cedi’s depreciation against major currencies has increased the cost of borrowing, contributing to higher mortgage rates. The Ghanaian government’s fiscal deficit and debt servicing costs have also put pressure on interest rates. Lenders are becoming more cautious and increasing their rates to manage risk, making mortgages more expensive for borrowers. These factors, along with global economic trends, are driving up mortgage rates in Ghana, making it more challenging for people to afford homes.