HFC Bank has ruled out any fears of losing to competition in the mortgage industry with the coming on board of GHL Bank.
Managing Director of HFC Bank, Anthony Jordan, explains that the vast housing needs of customers make it necessary for more players to come on board to address the issue.
Considered as one of the leading mortgage-centered banks, HFC bank is among the eight banks that offer mortgages in Ghana.
GHL Bank, formerly Ghana Home Loans, is also targeting competitive mortgage offers even with its universal banking license.
But Mr. Jordan has told Citi Business News that his company will least be affected by the move.
“…The market for mortgages is very large and there a few banks that are doing mortgages seriously in Ghana. So there is enough business for all of us up to this point in time,” he asserted.
Ghana is currently facing a housing deficit estimated at 1.7 million minimum.
The persistent nature of this situation has also been blamed on the high cost of mortgages.
Mr. Jordan however admitted to some possible distortion to funding mortgages.
But he maintains that the availability of market should enable the bank surmount such.
“Ghana Home Loans’ ability to do mortgages doesn’t take away from the volume of business that I can do. I will rather have other restrictions like funding maybe because even if Ghana Home Loans is doing a lot of mortgages, there is still a big unsatisfied demand for mortgages.”
The Board Chairman of GHL Bank, Albert Essien had also outlined ambitious plans by the bank to be among the top five banks by 2020.
This he says will involve meeting the various market needs which are currently missing in the banking sector.
The average interest rates on mortgages as at October 2017 stood at 30.3 percent.