HoREA seeks no disbursement deadline for major home loan package

07-Jun-2016 Intellasia | TBKTSG | 6:00 AM Print This Post

The HCM City Real Estate Association (HoREA) is seeking approval from the prime minister and the State Bank of Vietnam (SBV) for no disbursement deadline to be imposed on the VND30 trillion home loan programme.

This proposed exemption should apply to the loan contracts signed before March 31 by individuals and households to rent, build and repair social homes, according to HoREA.

HoREA suggested loan disbursements should be based on reality, instead of being tied to the December 31 deadline as proposed by the SBV.

According to the association, many homes will be handed over to individual and household homebuyers after December 31. Life would be tough for homebuyers if they cannot borrow after that date while there are no alternative sources of funding for them. They cannot avoid paying higher interest if they rely on commercial bank loans or loan sharks.

According to the Real Estate Law, purchasers will have to pay 95 percent of a home’s value after taking delivery of homes and the remainder after they get home ownership certificates. The property market and the interests of eligible homebuyers under the programme would be affected if disbursements end at the end of this year.

HoREA also proposed extending the deadline for bank recapitalisation disbursements for credit contracts struck before end-March. The contracts were signed with households and individuals to upgrade and construct budget houses, and investors of social housing projects and commercial housing projects converted into low-cost ones for homebuyers who signed contracts under the programme before March 31.

HoREA said investors clinched contracts with customers, including those falling under the programme, to sell almost all social and commercial houses converted into social ones.

Therefore, authorities should review the conditions of specific projects. If investors have yet to sell any homes, disbursements could be stopped. In case investors already inked contracts before March 31, those contracts should be checked to make appropriate disbursements so that investors can hand over homes to clients.

The SBV on Tuesday wrote to the prime minister proposing recapitalisation disbursements until December 31 for the loan contracts signed before the end of March between banks and customers who are individuals and households using loans for purchasing, renting, upgrading and building homes.

The central bank also proposed suspending recapitalisation disbursements for deals signed with individuals and households to upgrade and build social houses, and investors of social housing projects and commercial houses converted into social ones.



Category: Finance, Vietnam

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