Pre-Purchase Option for Housing Loan Applicants

EghtesadOnline: Prospective homebuyers who tap into the homeownership initiative launched by Bank Maskan, the agent bank of the housing sector, will soon have the option of making a pre-purchase, the chief executive of state-run lender announced.

News ID: ۷۸۳۱۴۹

03 July 2018

"Even as many applicants purchasing residential units have been unable to use the option of pre-purchasing homes because of existing faults and ambiguities in the current law, we are designing an exclusive path to pre-purchase residential units that have been built by builders and mass-builders in accordance with the prevailing demand template," Abolqasem Rahimi Anaraki was also quoted as saying by HIBNA, the official news outlet of Bank Maskan.

Based on the initiative, builders and mass-builders, which use financing and facilities provided by Bank Maskan, will be able to pre-sell their residential units after 20-30% physical progress to applicants of the Housing Savings Account (HSA) initiative or offer the units to other applicants through Bank Maskan.

Launched three years ago, HSA requires applicants to make a down payment and wait for a year to become eligible for loans equal to twice that amount. It is Iran's most affordable homeownership option for first-time homebuyers with interest rates of 8% and 6% for non-distressed and distressed urban areas respectively, Financial Tribune reported.

"In a situation where pre-sale deals have in effect been locked because of legal ambiguities on the one hand and lack of financing for builders and weak consumer purchasing power on the other, this method can have several advantages for people active in the housing sector, applicants and the overall housing market," Rahimi said.

Bank Maskan's CEO noted out that since first-time homeowners will be able to pre-purchase newly-built residential units through this initiative, these units will be spared price increases that are most likely during the months they are under construction.

Rahimi did not provide a timeline for the implementation of the initiative, but said Bank Maskan's deputy for credit affairs and one of its board members have been tasked with holding meetings with mass-builders and related officials as soon as possible.