Warming up capital sources for home rental and purchase loans

(Baonghean) - The Government has launched a VND30,000 billion support package to rescue the real estate market and meet the demand for capital to buy houses for low-income people. After a long period of sluggishness, the State Bank issued Circular No. 32/2014/TT-NHNN (November 18, 2014), expanding the subjects eligible for loans to rent or buy social housing. At the same time, it added conditions for loans and "extended" the time to apply the loan interest rate...

Circular No. 32/2014-NHNN amends and supplements a number of articles in Circular No. 11/2013/TT-NHNN regulating housing support loans under Resolution No. 02/NQ-CP of the Government. Accordingly, in addition to the subjects previously prescribed, this amended and supplemented Circular expands the group of subjects who have land in accordance with the planning, have housing difficulties but have not received State support for loans to build or repair their houses. At the same time, it stipulates more clearly the purpose of the customer's loan is to pay the unpaid rent or purchase of social housing in accordance with regulations. "Relax" the time period for applying loan interest rates for customers buying, renting, purchasing social housing and renting, purchasing commercial housing to a maximum of 15 years compared to the 10-year period previously prescribed;...

Hung Binh Apartment (Vinh City) is supported with a loan from the 30,000 billion VND credit package during the completion phase. Photo: LT

At this time, commercial banks have excess capital, it is difficult to find potential customers to lend, so they are more "open" in lending capital for social housing. Mr. Cao Nguyen Hung - a member of the Vinh Youth Union has just received a loan of 350 million VND from the Mekong Delta Housing Development Bank, Nghe An branch (MHB) to buy an apartment. Not hiding his joy, Mr. Hung confided: "I work as a youth union officer with a modest salary, my wife is a freelancer with an unstable income. With the income of both husband and wife just enough to cover living expenses, including rent, raising children and daily expenses, we did not dare to think about saving to buy a house. Thanks to the preferential credit package of the State, we have the opportunity to borrow money to buy our dream apartment. With low interest rates, a loan period of more than 10 years, and a commercial bank allowing us to mortgage our future home, my family is very excited...".

Up to now, MHB has disbursed nearly 8 billion VND to 20 borrowers. Mr. Tran Trong Nam - Branch Director said: Implementing the Government's policy and the Circular of the State Bank, we consider this our duty and thoroughly inform each credit officer to be impartial in implementation so that the humane policy of the State reaches the right subjects in need of capital. At the beginning of implementation, there were certain difficulties, but now the information has reached many classes of people, and the operations of bank officers are also more favorable. Besides, the real estate market and housing supply are warming up, the disbursement of social housing capital will be more and more promising, creating conditions for many customers to access capital to buy houses.

Similarly, at the Ben Thuy Industrial and Commercial Bank Branch, by the end of October, capital had been disbursed to 17 borrowers, with outstanding loans of nearly VND 6 billion, an increase of VND 4.5 billion compared to the first 6 months of the year. Mr. Le Thanh Phong - Deputy Director shared: "Entering the third quarter, the demand for customers to borrow money to buy houses increased, the segment of small-sized low-cost houses tended to increase, many customers borrowed money to buy houses, because the policy is suitable for the income of officials, workers and civil servants. In addition, the bank is always ready to create conditions for subjects to access capital". However, lending to support housing still faces some difficulties, according to regulations, banks and investors must have a link, so when lending, the rights and obligations of the parties are not clearly defined.

In fact, some customers have their parents' assets as collateral, while many customers mortgage their future assets, which are the houses they buy. But the bank's biggest concern is when will the customers receive the Housing Certificate? Because if a risk occurs, it is difficult to determine responsibility. The bank is ready with capital to meet the needs of customers, but must verify closely to ensure eligibility and the right subjects. All customers who borrow housing support loans have money transferred directly to the investor by the bank, disbursed according to the customer's payment schedule (to avoid using capital for the wrong purpose).

Along with the policy of "relaxing" lending conditions and eligible borrowers of banks, currently in the province there are also many commercial housing projects with small areas and low prices suitable for customers' purchasing power. Grasping customers' tastes, many investors have been implementing small-segment housing projects to stimulate purchasing power. Kim Thi social housing project, block 1, Quan Bau ward, was urgently implemented by the investor to meet the housing needs of low-income people. Ms. Nguyen Thi Kim Hoa - Chairman of the Board of Directors of Kim Thi Real Estate Joint Stock Company said: The project has an area of ​​more than 3,300m2 of social housing, in addition to townhouses and a commercial center. The building is 15 stories high, with 238 apartments, each apartment is from 45m2 - 62m2, the project was implemented from November 2014, expected to be completed by the end of 2016, with a total investment capital of 247 billion VND. When the project is completed and put into use, it will partly solve the housing needs of low-income people, especially those living and working in Vinh City.

In 2014, there were 4 more commercial housing projects being built in the area, of which Tecco Nghe An Branch alone invested in 3 housing projects with a total of 500 apartments, mainly apartments with an area of ​​less than 70m2, suitable for the needs of customers buying low-cost houses. Recently, the State Bank Branch of Nghe An province coordinated with the Department of Construction to grasp the demand for social housing and social housing projects in the area and directed credit institutions to provide housing support loans according to Resolution 02/NQ-CP. By the end of October 2014, in Nghe An, credit institutions provided housing support loans according to Resolution 02/NQ-CP, with outstanding loans of nearly 41 billion VND, including 111 borrowers, all of whom were individual customers. Meanwhile, at the beginning of the year, outstanding loans in this field only reached 5.3 billion VND. Thus, the growth rate of outstanding loans is 7.6 times higher than at the beginning of the year. This is a positive signal for the housing support lending sector according to the State Bank's circular and the Government's policy. In the coming time, with more open lending conditions and mechanisms, and an abundant supply of social housing, the disbursement progress of the VND30,000 billion package will certainly meet social expectations.

Quynh Lan