Proposed establishment of the housing mortgage loan

Bank for investment and development of Vietnam (BIDV) has just proposed the Government establish the company refinance home mortgage lending in order to timely support, the difficulty of the economy and the property market.

Mr. Tran BAC HA, Chairman of the Board of the BANK said, according to the BANK's proposal, the company will have a capital of 5,000 billion and in the first 5 years of operation is expected to mobilize more about 50,000 billion to finance low-income housing market. This capital will be retrieved from the Government incentive funds, reverse mortgage info from development assistance ODA capital sources, the source of the deposits held in the country, and international sources of capital to support other long-term contribution.

To fund the low income housing loans, the company will follow the 2 forms is re mortgage loan and buy back the debt at low income mortgage loans from commercial banks.

Accordingly, the objects of social housing policy is with the revolution, have difficult circumstances; the households were poor rural areas have yet to take home mortgages and have income from 4.8 million back down; low income people in urban areas and a number of other objects such as employees, students, the disabled ...

Term of the loan can last from 15 to 30 years depending on the specific circumstances, conditions and with preferential interest rate is lower than commercial interest rates on the market.

So, if entered, this company will focus on mortgage refinancing funding for low income housing market with capital of about 50,000 billion in five years, corresponding to about 250,000 homes or 7.5 million square meters of low income housing.

Mr Ha said, in the process of preparing the first time and when the new mortgage home company goes into operation, the BANK is ready to join the fast company to support operations, efficiency and stability.

Besides, to implement resolution 01 and 02 of the Government on the implementation of a number of solutions for difficult disassembly production business, market support, resolve the bad debt, in the period 2013-2015, the BANK is expected to spend about 30,000 billion to support for mortgage lenders to the real estate business.

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