How Rent-to-Own Could Help Workers Become Homeowners Without Paying Full Price Upfront

• Rent-to-own allows occupants to live in a house while their monthly payments gradually build an ownership stake
• The National Homeownership Fund has reviewed its scheme to provide more flexible payment terms
• Applicants must examine the total price, monthly payment, additional charges and consequences of defaulting

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For many Ghanaian workers, the biggest obstacle to owning a home is not necessarily the ability to make monthly payments. It is raising the large amount normally required before acquiring the property.

A rent-to-own arrangement could provide an alternative by allowing qualified workers to occupy selected houses and pay for them gradually.

Unlike an ordinary tenancy, where monthly rent only provides accommodation, payments made under a rent-to-own agreement are structured to help the occupant build an ownership stake in the property.

This means a worker may not have to provide the full purchase price or a large deposit before moving into the house. However, it does not mean the home is being sold below its actual price or offered for free.

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How the plan works

Under a typical rent-to-own arrangement, a property owner or housing organisation enters into a long-term agreement with an occupant.

The occupant moves into the house and makes an agreed payment every month. Part of the payment may cover the right to live in the property, while another portion is credited towards its purchase.

After completing the required payments and meeting the conditions in the agreement, ownership of the house is transferred to the occupant.

The National Homeownership Fund says its Affordable Housing Real Estate Investment Trust Rent-to-Own Scheme is aimed particularly at low- and middle-income earners.

The Fund explains that affordable monthly payments under the programme will help participants build equity over time. Equity simply refers to the portion of the house that the occupant has gradually paid for and can eventually own.

The scheme is being implemented with asset management companies, which use investment funds to acquire properties and make them available under rent-to-own arrangements.

The NHF says it is acquiring and converting inner-city apartments and housing units in different regions for the programme.

This arrangement could benefit workers who have stable monthly incomes but struggle to raise a large deposit or qualify for a conventional bank loan.

It may also allow a participant to live in the house while paying towards ownership instead of paying rent elsewhere and attempting to save for another property at the same time.

In August 2026, NHF Chief Executive Officer Prosper Hoetu announced that the rent-to-own programme had been reviewed to introduce more flexible payment terms and improve access to homeownership.

He, however, acknowledged that inadequate resources could limit the number of people who initially benefit from the programme.

What workers must check

Despite its potential benefits, workers should carefully study the agreement before joining any rent-to-own programme.

Applicants must confirm the full price of the house, the repayment duration and the exact amount to be paid monthly. They should also know how much of each payment will count towards ownership.

Other expenses may include insurance, maintenance, property rates, service charges, legal fees and administrative costs. These charges could make the monthly commitment higher than ordinary rent.

The agreement should also explain what happens when a participant loses a job, misses payments or decides to leave the scheme. In some arrangements, an occupant who defaults may lose part of the money already paid.

Participants should additionally confirm who is responsible for repairs and whether they can renovate, sublet or sell their interest in the property before completing payment.

A lawyer should examine the agreement and verify the ownership documents before any money is paid. Prospective applicants should also deal directly with the National Homeownership Fund or its officially approved partners to avoid fraudulent agents.

Rent-to-own could offer workers a realistic path to homeownership without demanding the full price upfront. Its success for each applicant, however, will depend on the property’s price, the monthly obligation and whether the payments can be sustained for the entire agreement period.

How to qualify to a home loan

Previously, YEN.com.gh reported that, according to the National Homeownership Fund, a worker earning GH¢2,500 net monthly could qualify for a mortgage of up to GH¢143,000.

Per figures cited by the Ghana News Agency, the repayment could be about GH¢1,231.95 monthly over a maximum period of 20 years.

Applicants would still have to meet the requirements of a participating bank before the mortgage is approved.

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Source: YEN.com.gh