To Mortgage or Not to Mortgage!

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That is the question! What is the best way to finance your home purchase?? If you are considering  a mortgage, here is some information to help you. 

A mortgage is a financial instrument that people use to purchase property. It is paid over a period of time with interest. Under certain circumstances, a mortgage is a great option but under others it may be the longest-standing debt you’ll ever have. We understand that making that decision could be hard so here are some things to deliberate as you contemplate  a mortgage. 


1.  Immediate Purchase – This is the biggest advantage of a mortgage. With this financial instrument you have the chance to get the home of your dreams without having to wait to have the full amount to pay for your future home. A mortgage allows for your dream home to become a reality in the shortest time. 

2.   Extra disposable income – You may have the finances to buy a home outright but let’s think this through. Before you make the move to buy your home outright, ask yourself these questions. Are there other goals that this money could make a reality? Are there lucrative investments that could generate wealth for me within a specified time? Are there financial obligations that need to be met that this amount could meet in the short to medium term? If your answer is no to any of these questions and questions like this and  you believe that getting this financial institution is the best way to get your home you should begin the process of financing your new property.

3.    Savings on Interest – Paying for a home outright does offer some savings to the buyer. Due to the interest that needs to be paid on the mortgage, the actual amount that would have been paid for the property increases significantly. By paying out right, you pay exactly what your property is worth without the added payments that would have come with mortgage financing.  


1.   High Overall Payment – Even though a mortgage is paid over a period of time it is still expensive. By the time the final payment has been made, the homeowner would have paid significantly more money for the property than the actual price of the property. This is due to the interest rate that is charged on the mortgage for the property. 

2.   Security of your property – Once a property has been paid for through a mortgage, the property is technically owned by the financial institution that gave the mortgage out. Defaulting on payments gives the financial institution the right to claim the property and sell it off to make their money. Create a viable financial plan  to ensure that there is a steady payment of your mortgage to avoid eviction from your property. 

3.  Fluctuation of Interest Rates – In Ghana, the interest rates on most mortgages are pegged against the dollar. The instability of the forex market affects the monthly payments that need to be made. These changes will usually reflect in increases in monthly payment due and affect the homeowner’s planning ability. If interest rates are not stable and there is an occasional increase in these rates during the payment period of the mortgage, there will most likely be a heavy financial strain on the homeowner. 

Owning a home is one of the best ways to have some sense of security. Find the best home as well as the best financial option to make your dream a reality. Speak to us to pre-lease your unit at the Genesis Residences today! As a homebuyer, be sure to do your due diligence for the assurance that you are making the right  financial decision for yourself. 

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