New circular sets home purchase bailout limits
HA NOI (Biz Hub) ─ Individuals purchasing commercial houses worth VND1.05 billion (US$50,000) or less in urban projects that authorities have approved are entitled to financial assistance from the national real estate bailout programme.
This is in accordance with Circular No. 32/2014/TT-NHNN which the State Bank of Viet Nam (SBV) issued last November 18 to amend a previous circular issued on May 15, 2013.
The documents provide guidelines for government directives on lending activities to assist business and market developments.
In Resolution No. 02/NQ-CP issued on January 7, 2013, the Government asked State-owned commercial banks to reserve at least three per cent of their total outstanding loans to help low-income citizens lease or purchase social or commercial houses measuring less than 70 sq m and priced below VND15 million ($714) per sq m.
Viet Nam has been implementing a VND30-trillion ($1.43-billion) national real estate bailout package that has been disbursing capital since 2013 through Vietinbank, Vietcombank and BIDV, as well as Agribank and Mekong Housing Bank.
According to the latest SBV circular, package beneficiaries include civilian and armed forces servants and workers, as well as households and individuals who build social houses to serve workers and students.
Enterprises that transform their commercial housing projects into social housing projects are likewise qualified for support.
While interest rates for programme loans remain unchanged at six per cent or lower as designated by the SBV, the maximum term that home buyers or renters may enjoy such rates has been extended from 10 to 15 years and cannot be prolonged after June 1, 2031.
For customers nationwide who build or repair their own houses, each can acquire a maximum loan of VND700 million ($33,330).
The SBV is suggesting that joint-stock commercial banks join the programme and register with it for this purpose within 30 days after the circular takes effect on November 25. — VNS