· The Reporter Ethiopia · Nardos Yoseph
Funding Bottleneck Forces Goh Betoch to Halt Mortgages as National Housing Fund Takes Shape
Summary of the The Reporter Ethiopia report
Goh Betoch Bank, Ethiopia's sole specialized mortgage lender, is forced to pull the brake on long-term mortgage lending after its loan-to-deposit ratio soared to an unsustainable level. The freeze highlights severe structural liquidity mismatches in the financial sector just as federal authorities and policy researchers move to establish a National Housing Fund and a 100 billion birr mortgage refinancing company to address the country's chronic housing finance deficit.
Key points
- Goh Betoch Bank paused new mortgage lending after its loan-to-deposit ratio reached 160 percent.
- The bank held 1.32 billion birr in deposits against 1.67 billion birr in loans for the year ended June 30, 2025.
- A National Bank adviser said mortgage rates sit near 18 percent and mortgage debt is below 0.5 percent of GDP.
- A planned National Housing Fund under the Ministry of Finance would offer down-payment help, rate subsidies and partial credit guarantees.
Real.et analysis
The Reporter reports that Goh Betoch Bank, the country's only specialised mortgage lender, has paused new mortgage lending after its loan-to-deposit ratio reached 160 percent. At the same time, federal authorities prepare a National Housing Fund and a 100 billion birr mortgage refinancing company.
What this means for buyers
If you planned to finance a home through Goh Betoch, you need another route for now. The bank's chief executive said it expected long-term funds from domestic pension funds and from the World Bank and IFC. Those funds did not arrive. So the bank lent from its own equity and a small deposit base, and it ran out of room. It is now shifting toward standard commercial banking.
For buyers, the report confirms three things:
- Mortgages remain scarce. A National Bank adviser said housing finance has stayed under 5 percent of total bank lending for five years.
- Loans are expensive. Mortgage rates are near 18 percent, and banks apply strict down-payment rules. At that rate, monthly payments on even a modest flat are high.
- Help is planned, not ready. The central bank is still finalising the directive for the refinancing company. The National Housing Fund is still at the design stage.
Practical steps now:
- Ask commercial banks directly. Compare the down payment, term and rate that each bank offers. Terms differ from bank to bank.
- Look at developer payment plans. Many developers sell on instalments during construction. Read the contract terms with care, especially on price changes and delays.
- Build a savings record. A steady savings history at a bank may help you qualify for future products, such as down-payment support.
What the National Housing Fund could change
The planned fund focuses on affordability, not construction. According to the report, it would run under the Ministry of Finance. It would offer down-payment help, interest-rate subsidies and partial credit guarantees to both formal and informal workers. It would raise money from voluntary housing savings, government seed capital and housing bonds. If it works, more households could qualify for a formal home loan. The report gives no launch date.
Our mortgage guide explains how bank home loans work and what banks ask for. Read our coverage of the mortgage refinancing company, and compare prices of apartments for sale to estimate how much you need to save.