Accessibility of Demand Housing Finance Loan by Public Sector Workers in Ghana: The Income Challenge

Abstract

Purpose - Despite many efforts by the government of Ghana and the key players to boost the housing industry, it remains in its infancy. The purpose of this study is to identify the knowledge gap within the housing industry by analysing the income levels of public sector workers.

Design/methodology/approach – Mixed methods research is the right choice as three hundred and eighty-four (384) public sector workers were surveyed using a comprehensive questionnaire completed with information gathered from qualitative sources. 

Findings—A significant 68.7% of public sector workers surveyed say their income influences their choice of demand housing finance. The test found that a review of public sector workers' salaries is likely to boost their affordability of housing demand finance; hence, the null hypothesis is rejected.

Practical Implications — Lessons are learned from successful examples like the INFONAVIT of Mexico and the Central Provident Fund (CPF) of Singapore, where provision was made for workers to contribute towards acquiring a property with the support of their employers.

Originality/value — This is the first time in Ghana that public sector workers have been surveyed comprehensively in relation to demand for housing finance loans. This research did not follow the existing trends of focusing on the availability of banking products but the expectations of the majority of public sector workers. This knowledge raises many questions as to why the existing demand housing finance schemes have been unsuccessful in Ghana.