Deputy Minister of Finance, Charles Adu Boahen said this money has been made available to some selected banks in the country at a very low-interest rate as government's support towards mortgage financing.
He was speaking at the opening of the Ghana affordable housing finance forum in Accra.
He said, "Government has released an amount of GH¢40 million to the commercial banks as part of funds to cushion the support of the financial sector in providing a low-interest mortgage.
The funds have been made available to some selected banks only after careful due diligence by the ministry."
Currently, Ghana needs about 2 million housing units to be able to solve the housing challenge it is facing.
Meanwhile Minister for Works and Housing, Samuel Atta Akyea said the state funds alone cannot solve the housing needs of Ghana.
He said the government needs more investors to add up to the funds provided by the government to support affordable housing.
"There are many opportunities for us to deal with these housing deficit and I can tell you, state funds alone cannot be adequate in solving the problem. Other private sector players must come on board to support the effort of government," he noted.