Applying a Fuzzy Analytic Hierarchy Process to Demand Considerations of Households Opting for Mortgage Loans

The need for high economic development across the entire globe and Sub-Saharan Africa in particular has led to the awareness of the need to increase the housing base across the continent. The astronomical increase in population and urbanisation and its associated problems of accommodation call for the need to provide good housing for the people of Ghana; the provision of which could depends largely on the availability of mortgage facilities. However, obtaining the right mortgage is as crucial as obtaining the right home, yet buyers seemingly do not invest as much time and effort in a mortgage search as in house searches. It is against this backdrop that this study investigates factors considered by households before acquiring mortgage loans. A questionnaire was administered within the Accra metropolis, the area of Ghana with the most mortgage loan providers. We employed the fuzzy analytic hierarchy process (FAHP) to analyze the thought processes of households when making their decisions on acquiring a mortgage loan. The results indicated that factors considered by households when opting for a mortgage loan, ordered based on their degree of importance, were "Employment", "Housing Market Conditions", "Personal Factors", "Economic Factors", "Mortgage Lender Policy", "Housing Alternatives", "Knowledge", and "Social Factors". The weights of the first four factors were as high as 70.99% (Buckley’s method) and 69.70% (Chang’s method). These four items, have the most impact on household demand considerations when opting for a mortgage loan. If these factors are significantly improved, then, they can have a positive microeconomic impact on actual households demand for mortgage loans, in turn making the mortgage market a lucrative business.