Economy, Business And Markets

Lower Interest Rate Mortgage for Newly-Weds

Lower Interest Rate Mortgage for Newly-WedsLower Interest Rate Mortgage for Newly-Weds

The government has increased the amount of mortgage loans provided by commercial banks for young couples, while it has reduced the mortgage interest rate as well, a senior official announced on Wednesday.

“The amount of housing loans will increase to 500 million rials ($18,000) for young couples who reside in big cities,” said Mohammad Bagher Nobakht, the government’s spokesman. “The loans will amount to 400 million rials ($15,000) in smaller cities and towns with over 200,000 households.”

For towns with fewer than 200,000 households, 300 million rials ($11,000) of loan facilities will be provided for newly married couples, said Nobakht.

These loans, however, will mainly target couples from “low income groups, as well as single mothers”, according to the spokesman.

The housing loans will be offered at a 10 percent interest rate, while the government is also planning to offer mortgage loans with an interest rate of 9 percent, he said. Such measures can also help pull the housing sector out of recession

Under the 6th Five-Year Economic Development Plan (2016-2020), the government is set to help build annually 300,000 houses, in an attempt to increase the total number of residential units built in a six year period to 108 million.