HCM City considers low home loan rates - HCM City considers low home loan rates - Website Ho Chi Minh City
Local authorities in Ho Chi Minh City have proposed an annual interest rate of only 3 percent for the most preferential home loans to benefit the poor, and seek the Government’s approval to extend the disbursement of the 30-trillion-VND home loan package up to 60 months, the Saigon Times Daily reported.
In a document just submitted to the Government, the city also suggested that poor people be subject to the so-called “social housing” policy, enjoying the 3 percent interest rate for loans of up to 15 years. This policy will help ease difficulties faced by low-income earners, workers and college students in the city.
The 30-trillion-VND credit package currently offers homebuyers a lending rate of 5 percent per annum, and the package was initially set to wind down within 36 months. However, only 10 percent of this credit line has been disbursed for both homebuyers and housing developers after more than 15 months of implementation.
Le Hoang Chau, Chairman of the HCM City Real Estate Association (HoREA), told the Daily that the association earlier proposed the Government lower the annual interest rate for buyers of budget homes to 3-3.5 percent and offer a three-year grace period.
In the document, municipal authorities called for accelerating the disbursement of the 30-trillion-VND credit package by allowing enterprises to mortgage their land ownership certificates and projects as collateral.
The city also suggested establishing a support fund for individuals to buy, rent and repair homes.
Enterprises should be allowed to take out loans to build budget housing projects and convert commercial homes into budget ones. They should also be allowed to invest in housing for workers with zero interest loans.
Individuals and households who want to buy budget houses for lease and sale to workers, low-income people and students, among others, should be allowed to borrow from the credit package in line with Resolution 61/NQ-CP.
In related news, the newspaper said the Credit Department under the State Bank of Vietnam is mulling a low-interest credit package for civil servants and soldiers to buy homes. If realised, each household can borrow up to 2 billion VND with a lending rate of 6-7.5 percent per annum in a maximum period of 10 years.