Does reducing installments of construction facilities increase housing production? – Tejarat News

According to Tejarat News, yesterday, the Money and Credit Council agreed to reduce the interest rate of the National Housing Movement construction facility by five percent from 23 percent to 18 percent. It is said that this plan has been waiting for the answer and approval of the Money and Credit Council for a long time!

Meanwhile, the Money and Credit Council had postponed commenting on this plan because the housing market is facing a serious crisis and is suffering from a lack of supply. Meanwhile, one of the serious obstacles and challenges in the construction of national housing has been the issue of financing and facilities. However, now it has been agreed to reduce the interest rate and one of the challenges of housing construction has been slightly simplified. But will this mean facilitating people to become homeowners?

Reduction of the benefit of the facility only for 500 thousand residential units

The Governor General of the Central Bank announced yesterday that the issue of reducing the interest rate of the supportive housing construction facility was approved after expert reviews, and based on that, the interest of this facility for 500 thousand residential units whose land is provided by the Ministry of Roads and Urban Development and offered to applicants It can be reduced from 23% to 18%.

This resolution can be examined from two perspectives; First of all, it should be said that although the government has promised to build one million residential units per year in the form of the National Housing Movement Plan, this facility will only be given to 500,000 units of this plan whose land has been provided by the Ministry of Roads.

Based on this, not only the government’s promise to build one million residential units per year has been practically denied, but also this facilitative decree will be allocated to only half of these units and thus will have a very low coverage.

What changes does the housing construction facility face?

From another point of view, this question is raised, does the reduction of the installment amount mean an increase in the ability to repay it? Last month, it was agreed that the installments of the national housing facility would be made in a staggered manner, which was a step in the direction of reducing the monthly installment pressure on the borrower. Now it is said that lowering the interest rate as a complementary step can help the repayment of the loan.

Based on the previous method, the monthly installments of the National Housing Movement construction facility, which was calculated with an interest rate of 23%, started at least at around 9.5 million Tomans and increased to more than 16.6 million Tomans in the twelfth month of the 20th year. Now, not only due to the decrease in the interest rate, the monthly repayment amount has decreased, but also the 20-year participation period is not considered.

Has the ability to repay for applicants increased?

The important thing is the amount of monthly installments. Based on the stepped repayment method of the national housing construction facility, whose profit has now been reduced to 18%, the applicants of the facility, in the first year of repayment, pay about 7,357,000 tomans monthly. This is the minimum amount of reimbursement, which is almost equal to the monthly salary of the workers.

Currently, the minimum monthly wage of workers is approximately 7,900,000 Tomans. Workers who are the target community of the National Housing Movement’s support plan. Based on this, even with the reduction of the interest rate of the facility and the staggered repayment method, the target community of this facility is still unable to repay the loan. Because this cost will be a double burden on the shoulders of the final applicants, both in the self-ownership method and in the accumulation method.

It should be mentioned that these installments will increase to 8 million and 281 thousand Tomans in the fifth year and to 9 million and 600 thousand Tomans in the tenth year. Also, in the 15th year of loan repayment, the monthly installments will be 11 million and 129 thousand tomans. And finally, in the 20th year, the monthly installments of the National Housing Movement loan are 12,901,000 Tomans. Based on this, one can only hope for the repayment of the loan in the coming years, and probably the workers’ salaries will also face growth, and next to the devaluation of the national currency, the amount of 11 million Tomans does not seem like a special figure!

Read more reports on the housing news page.