Proposal to support first home buyers with interest rate of 4.7%/year

In the document "Proposal not to stipulate the termination of ownership when announcing the demolition of apartment buildings and proposing to stipulate the responsibility of investors of commercial housing construction projects to contribute financially to develop social housing and comment on a number of articles of the Draft Housing Law (amended)" recently sent to the Prime Minister and the Ministry of Construction , the Ho Chi Minh City Real Estate Association (HoREA) presented many important contents. Notably, the content of supporting buyers of the first house priced under 2 billion VND with an interest rate of 4.7%/year.

A low-cost housing project in Ho Chi Minh City

According to HoREA, over the past 17 years, the Ho Chi Minh City Housing Development Fund (HOF) has supported about 5,500 cadres, civil servants, state employees, armed forces officers, and union officers with preferential loans to buy houses, with loans in the first years being only 400 million VND and adjusted to increase over the years. The loan is 900 million VND and does not exceed 70% of the apartment value with a preferential interest rate of 4.7%/year for 20 years.

HoREA believes that the above method does not specify the price of the house to be purchased with capital support and preferential interest rates, so it may include the case of buying a high-value house.

According to HoREA, the preferential credit support policy for first home buyers is a policy that has been applied in many countries but has not been stipulated in the Housing Law of our country. Therefore, the association proposed to consider adding to the draft of the Housing Law (amended) a policy to support preferential loan interest rates for 10-20 years for first home buyers, which are apartments priced at no more than 2 billion VND.

HoREA suggested that ministries and sectors study the innovative approach of Ho Chi Minh City - which has supported preferential loan interest rates of 4.7%/year for 20 years for first-time home buyers. In addition, the association also proposed adding regulations for provincial People's Committees to "deduct 10% of the winnings from auctions of land use rights in the area" and consider "deducting a portion of the profits from lottery activities" to develop social housing.

According to HoREA, provinces and cities all have industrial clusters with many small-scale handicraft enterprises, and some localities also have large enterprises located outside industrial zones. A typical example is the Pou Yuen Shoe Company in Binh Tan District, Ho Chi Minh City, which covers an area of about 100 hectares, equivalent to an industrial zone with about 100,000 workers, most of whom are from other provinces and have to rent rooms in neighboring provinces. Therefore, it is necessary to add the types of "worker accommodation serving the accommodation of industrial clusters" and "worker accommodation serving the accommodation of large-scale enterprises located outside industrial zones" to Clause 8, Article 3 of the Draft Housing Law (amended).

Source: https://nld.com.vn/kinh-te/kien-nghi-ho-tro-lai-suat-cho-nguoi-mua-can-nha-dau-tien-trong-10-20-nam-20230215111310771.htm