Determinants Of Mortgage Loan Demand In Ghana.

Abstract

Access to mortgage finance in Ghana is problematic for borrowers and homeowners. Examining the factors that influence Ghana's demand for mortgages is the study's main goal. This study's approach was based on a descriptive design. This study used secondary sources to obtain its data. The information was gathered from the official Bank of Ghana website. Secondary data from September 2019 through April 2023 served as the study's primary source of data. The financial accounts were presented consistently during this time period, which is why it was chosen. The information is composed of monthly statistics for the several study variables, such as macroeconomic and commodity prices. To ascertain whether or not the independent variable in a regression model has a strong association, statisticians use Multicollinearity. STATA was used to analyze the collected data. In this study, regression analysis is being performed to ascertain the relationship between the variables under investigation. The study used the unit root test with Augmented Dickey-Fuller after taking the first difference to ascertain whether or not the series is now stationary. The study revealed that gold price, lending rate and Monetary Policy Rate were found to have insignificant influence on the dependent which is Mortgage Loans. But four of the other variables which include crude oil price, Cocoa Price, Inflation and Exchange Rate were found to have insignificant influence on the dependent variable which is Mortgage Loans. Therefore, the study concludes that the determinants of mortgage demand in Ghana include crude oil price, cocoa price, inflation and exchange rate but exclude, gold price, lending rate and monetary policy rate. This means for an individual to demand mortgage loans from banks it depends on the crude oil price, cocoa price, inflation and exchange rate.