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Mortgage market and climate variability adaptation: evidence from the mortgage market in emerging cities

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  • Peres Ofori

    (Simon Diedon Dombo University of Business and Integrated Development Studies, SDD-UBIDS)

Abstract

The study examined the extent to which mortgage downpayments could be used by lending institutions to regulating the activities of real estate companies towards climate change and variability adaptation. It tried to justify the applicability of the policy initiatives given by Mercer concerning global warming reduction by (− 0.1) using regulated mortgage institutions in the context of Ghana. Using interview and structured questionnaires, information was solicited from real estate development companies and mortgage lending institutions pertaining to how they perceive climate change and variability adaptation. It was acknowledged that the financial institutions so identified provide 14 different types of mortgages of which the most common was the Home Improvement Mortgage. Using ANOVA, Chi-Square and Regression as statistical tools, the study reveals that though mortgagors rely on loans in a form of mortgages yet the amount of loan given them and the rate at which they expand their businesses is statistically insignificant p value of 0.059b > alpha 0.05).The findings, therefore, do not contradicts the claims made by Mercer (2015) in totality, however, makes it impractical in the case of Ghana. The study concludes that the real estate industry in Ghana is not regulated and players act outside the requirement of the SDG13. It, therefore, recommends for green building policy to define a threshold within which players will operate such that all mortgagors who operate in a climate variability friendly manner would be given a reduced mortgage interest rates.

Suggested Citation

  • Peres Ofori, 2021. "Mortgage market and climate variability adaptation: evidence from the mortgage market in emerging cities," SN Business & Economics, Springer, vol. 1(12), pages 1-22, December.
    • Handle: RePEc:spr:snbeco:v:1:y:2021:i:12:d:10.1007_s43546-021-00144-8
    DOI: 10.1007/s43546-021-00144-8
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    References listed on IDEAS

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