The Extent of Mortgage Financing in the Supply of Commercial Space: A Review of WA Space Market

Purpose: The supply of real estate space is decreasing at an increasing rate mostly in developing countries where monetary policies do not support borrowing. High rate of interest rate charges and adjustable nature of mortgage rates continues to dwindle real estate development in Ghana. However, the use of equity financing in producing real estate space is scarcely reliable. The study explores the contribution of mortgage financing in the supply of commercial space in Wa. It aimed at knowing the number of commercial space suppliers in Wa space market who have had access to mortgage financial support.Design/Methodology: The study employed field survey design and personal observation as techniques for data gathering. Questionnaires, focused group discussion and face to face interviews were adopted in getting primary information from the field. As such, respondents were purposively sampled to aid in getting appropriate information to suit the objective of the study.Findings: The study reveals that only 3.41% of the sampled commercial space suppliers had access to mortgage. As such a general conclusion was drawn to the fact that equity financing is prominent among commercial space suppliers in Wa even though the willingness to get mortgage by participants are high.Practical implications: The study makes recommendation for improving the accessibility of commercial real estate developers to mortgage facilities.