The bell tolls for cheapest housing ownership mortgage

Financial Tribune – Since the year ending March 2016 to the year ending March 2020, the average home prices have increased 3.2-fold in Tehran and twofold in the country while the amount of Bank Maskan’s Housing Saving Account mortgage loans has remained unchanged

Registration for new applications for Bank Maskan’s Housing Saving Account mortgage initiative closed on June 8, 2020.

“Despite our recent correspondence with the Central Bank of Iran, the monetary policymakers have not announced a decision on whether the agent bank of Iran’s housing sector is allowed to continue with the homeownership banking scheme or not,” Mohammad Hassan Moradi, a senior official with Bank Maskan, said on Wednesday.

Housing Savings Account initiative, launched on June 8, 2015, was scheduled to remain operational for five years with the aim of providing first-time homebuyers with loans at cheaper lending rates compared to all other loans offered by banks and lending institutions.

When the scheme was first introduced, the loan’s interest rate was set at 14%. In February 2017, after a directive by the Money and Credit Council, they were reduced to 9.5% in general cases and 8% for home purchases made in rundown parts of the cities.