Entries by Ghanacompares

How to obtain a mortgage in Ghana?

A mortgage is a loan taken for the purpose of acquiring real estate or a loan secured by real estate. Because a home is one of the most expensive acquisitions anyone can make, mortgages are usually large sums paid over several years or a few decades. Shelter is a fundamental human need. Whether we build, buy, lease or rent we all have to make the decision to acquire a place to sleep in Ghana. The necessity of shelter, the desire by most people in Ghana to have their own home rather than rent, and the high cost of real estate makes mortgages very important in Ghana. It also makes the ease of getting a mortgage and the interest rate charged for that mortgage a measure of the living standards of people in a country. Before we look at why a mortgage is important we should consider some reasons why owning a home is preferable to renting in Ghana. Ownership of a home means that you not only have to make periodic payments to someone else but also that you have an asset which generally increases in value and which you can leave to your dependents. It also serves as an income source since you can rent out your house to other people and charge them rent. As already stated, property is quite expensive in Ghana. This is especially true in Accra. A cursory glance at several of the websites advertising property in the capital city reveals that the prices are outrageous. It is very unlikely that the average Ghanaian will be able to purchase these properties without access to a mortgage. Financial institutions in Ghana give mortgages to allow people to pay off the high costs of property over a long period. Before you apply for a mortgage it is important to know how you expect to use the property you are acquiring, the cost of the property relative to other property, and how much you expect your income to increase over time. You should also be able to prove your income is stable and consistent (obviously a disadvantage to […]

19/02/2017 by
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How to obtain home insurance in Ghana?

Home insurance is an insurance policy that pays out compensation to a policyholder in the case of an agreed upon damage to the policyholder’s private residence. Due to the many unfortunate incidents that could happen to a person’s home and its contents, home insurance constitutes a cover for several items all insured with one periodic premium. Apart from covering contents of property it could also cover the liability of a policyholder to a third party relating to domestic incidents. A home is one of the biggest investments anyone will make in Ghana. It makes sense therefore that one should protect against the myriad problems that could arise from owning a home. Some of these potential mishaps are fires, robbery and damage from storms. Having an insurance policy gives you the assurance that your investment will be restored should anything happen to it. In Ghana, there is a requirement that commercial buildings should have fire insurance but there is no mandatory insurance that a private residence should have. However, if you intend to use your property to secure a loan then you need to have insurance for it. There are currently many insurance companies in Ghana each with a unique offering of policies for protecting the home. Although some of them do not offer home insurance as a package in Ghana, it would still be possible to select from a list of policies such as fire and natural disaster insurance to form protection for your home. Before you apply for home insurance in Ghana you should have a reasonable idea of the market value of your property and its contents. This is to ensure that the premiums you are going to pay to insure your home are reasonable taking into consideration the value of the property. Also, you should have a fair idea of the risks that you might be faced with in the area that you live. For example, if you live in a low-lying area then you know that you’re prone to floods and so you should get insurance that covers natural disasters as part of your insurance policy. […]

19/02/2017 by

GhanaCompares.com is proud to say

GhanaCompares.com is proud to say “We offer all Ghanaians the best deal on: Mortgage Insurance Broadband Loan Credit Card Financial products GhanaCompares.com is Ghana’s first online comparison website that aims to revolutionize the banking, insurance and broadband industry by offering online innovation to every single Ghanaian. We all know that hunting around for a financial product which is right for you can be a challenge in Ghana. Going around to all the banks, staying in the traffic, staying in the que, that’s where Ghanacompares.com service can help. You compare the best deals anytime, anywhere on your pc, tablet or mobile phone with GhanaCompares.com  

15/02/2017 by
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How to obtain broadband in Ghana?

Access to fast, reliable internet is one of the best boosts for productivity or entertainment that you can get. With how dependent society is becoming on the internet for work, information or fun, the decision on internet access is one of the most important ones that one can make. Broadband internet, which Wikipedia defines as “any high-speed Internet access that is always on and faster than traditional dial-up access.” This means if you’re reading this article on the internet right now then you’re likely using some kind of broadband internet service. In Ghana, there are usually two kinds of broadband internet available. They are mobile broadband and fixed broadband. Mobile broadband is the 3G and 4G internet connections on smartphones that comprise the way majority of Ghanaians access the internet.  Fixed broadband, as implied by the name, refers to internet access fixed at a location be it an office, residence or other institution. There are several broadband providers in Ghana. The mobile telecommunication companies mostly offer both mobile broadband and fixed broadband services if demanded. There are also independent broadband providers that provide fixed broadband. If you are looking to get fixed broadband, you need to have an idea of how often you will use the service and how much data you are likely to use in a month. This is because fixed broadband is usually less flexible in terms of data packages than mobile broadband. The option to pay for only what you use is usually unavailable and it may prove to be a waste of resources if you pay a fixed price only to use a tiny fraction of the data allocation. For example, if you mostly access the internet at the office and then sleep soon after getting home, paying a fixed price for broadband may not make financial sense. But if you do consider your frequency of internet use and the volume of data consumed and you feel that fixed broadband is the way to go then you must look at the offerings of the different Internet Service Providers (ISPs). Starting with this list you can […]

15/02/2017 by
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How to obtain a credit card in Ghana

A credit card is a short-term financing option issued by a commercial bank to allow holders to borrow money at the automated teller machine (ATM) or pay for goods and services at a point of sale device. The limit one can borrow is predetermined by the issuing bank, after the credit worthiness of the applicant has been ascertained. Obtaining credit facilities is a major challenge to most people in Ghana due to a high rate of non-performing loans in the banking sector. Not until December last year (2016) (when Barclays Bank launched their credit card facility), credit card facilities were exclusive to high income earners; Ecobank launched the first ever credit card facility (Ecobank VISA Gold Card) in Ghana a decade ago, a service accessible to the rich people in the country. Before you apply to any of the issuing banks, make sure you have a relationship with them; basically, an active bank account. Banks in Ghana do not have a common database to measure the credit score of clients so they do rely a lot on the relationship clients have established with them. If you have a history of paying back a loan and its accrued interests on time, that will boost your chances. An impressive credit turnover will also be key. If you do not have an account with them, they will require you to open one and run it for at least, six months. This will give them a fair idea of your earnings and cashflow. One other criteria banks look out for is employment. If you are self-employed, they may require some information about what you do and how you generate your income. If you are a salaried worker, the issuing bank may require your employer to sign an undertaking, promising to continually pay your salary through the bank. Aside Ecobank Ghana and Barclays Bank Ghana, Stanbic Bank Ghana also issues credit cards. It must be reiterated that only the credit card offered by Barclays Bank caters for the needs of low and middle income earners. To be eligible, you must be a salaried worker who […]

14/02/2017 by
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How to obtain a loan in Ghana

Any act which involves giving out money, an asset or goods of which repayment (or payment) is expected to be made with an interest charge at a later date can be classified as a loan. The act of giving out money to be paid later with interest is regulated by the Bank of Ghana. The two main types of loans are secured loans and unsecured loans. Secured loans are loans backed by a collateral security and unsecured loans are those not backed by collateral. Commercial banks, microfinance companies and financial institutions recognized by the bank of Ghana are those mandated to engage in the practice of giving out loans. Secured loans are the most common in Ghana due to a high rate of non-performing loans in the industry. Some common secured loan products available to individuals are personal loans, car loans and mortgage loans. The most common unsecured loan is bank overdrafts (except in cases where a bank requests for a collateral before granting an overdraft request). It must be noted that secured loans have a relatively lower interest rate, compared to unsecured loans, because they are backed by collateral. To obtain a personal loan from a bank, one must have established a banking relationship with the bank for at least, 6-months. Salaried workers with a banking relationship history of more than 6-months with a particular bank stand a greater chance of getting a loan request approved. Normally, a bank will request for a collateral security and a guarantor. The type of security varies from one institution to the other and sometimes dependent on the amount required; some prefer landed properties, others prefer a movable vehicle. To make applying for a loan easier, it is important to have your monthly income sent through one account with a particular bank. This will demonstrate your ability to repay the loan as the bank will be assured of a monthly remittance for their deductions. These days, the main criteria the banks look at before approving a loan request is an applicant’s ability to repay a loan than the ability to provide a collateral […]

14/02/2017 by
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How to obtain life insurance in Ghana

They say only two things are certain in life – death and taxes. But imagine if you could pay a kind of tax that will ensure that when you eventually die the people who depend on you will not be overwhelmingly disadvantaged by your passing. That is what life insurance provides. A life insurance (or life assurance) programme offers to pay your named beneficiaries a sum of money upon your passing in exchange for periodic payments known as premiums. Because death is inevitable, having a life insurance policy is crucial to ensuring that your dependents are well taken care off after your passing. This is especially important in a country like Ghana where expensive funerals are expected of people. There are several insurance companies in Ghana that offer life insurance policies. Even telecommunication companies offer life insurance these days. This means that the requirements for signing up for a life insurance policy are at the barest minimum these days. One just needs to provide personal details such as date of birth; the beneficiary; and the account number or other means through which the premiums will be deducted. The kind of life insurance you should get depends on your age, occupation and the people depending on you. For example, as a young person, you can pick a scheme which names you the beneficiary for a passing of someone close to you such as a parent. Also, if you are in a dangerous occupation, then it is important that you pick a life insurance policy that will not only pay when you lose your life but also when you are injured in a way which prevents you from being able to carry out your duties. Even though it is important that you waste no time in getting a life insurance policy, you should take your time to compare the insurance companies. You can easily request a quote at GhanaCompares.com. Having the information beforehand will lead you to make the right decision instead of being forced into a policy by the first insurance broker you meet. Always take your time before you sign. […]

13/02/2017 by

Ghana’s insurance market value to hit $600m by 2018

  Ghana’s insurance market value will reach US$600 million in 2018, from US$400million in 2014, based on a projected annual growth rate of 8.5percent, the 2017 edition of the Oxford Business Group Report has shown. The report cited an EY January 2016 survey as saying Ghana had the highest potential for growth in insurance premiums, and the least in terms of risk in sub-Saharan Africa. Insurance penetration which is below two percent of the population, measured as a percentage of GDP, underpins the vast but yet to be exploited potential. The sector accounted for about 5 percent of asset ownership in the financial sector, as at the first quarter of 2016. As Ghana’s middle class grows along with the economy, the Oxford Report says the demand for insurance is expected to also increase. Additionally, it says the country’s population is growing steadily, which could help boost the industry. For example, Timetric, an insurance intelligence company based in London, estimates that the size of the country’s life insurance industry alone will more than double by 2020, from $150.8 million in 2014 to approximately $413 million in 2019. Technology, particularly mobile phone penetration, data subscriptions and mobile money, are further expected to help insurance companies reach uninsured sections of the population, which otherwise would have been impossible with physical branches and offices. “The pioneering role of micro-insurance in Ghana can lay the foundation for more education, and more demand, for conventional insurance products,” the report said. As at 2014, the total value of premiums from mobile insurance — one of the components of microinsurance (m-insurance) — facilitated through mobile money, reached GH¢5million from 4.3 million policyholders, with experts expecting the figure to have more than doubled by end of 2016. Peter Osei Duah, Executive Director of Allstar Insurance Brokers and former boss of SIC, believes that technology, which allows for unlimited reach, including to low income earners, could be the catalyst for the sector to reach its touted potential in the coming years. The report added that there is huge potential for both life and non-life insurance products due to significant population growth […]

30/01/2017 by