Economy, Business And Markets

Bank Maskan Lowers Mortgage Rates

Bank Maskan Lowers Mortgage Rates
Bank Maskan Lowers Mortgage Rates

Bank Maskan, Iran's main housing bank, has lowered the interest rate of its mortgages by two percentage points in a bid to help pull the dull property market out of stagnation.

The move marks the first announcement by a lender to cut lending rates after a collective decision by banks brought one-year deposit rates from 18% to 15%.  

Mohammad Hashem Botshekan, Maskan's chief executive, said his bank is offering loans, including to the Housing Savings Account, special home loans for the youth and regular mortgages at 11% interest."

“The move is in line with government policy to help lift the property market,” Tasnim News Agency quoted him as saying on Teusday.

“As a result, borrowers’ monthly payments will be reduced, he said, “those who take out 800-million-rial loans through the Housing Savings Account, will henceforth pay a monthly sum of 8.8 million rials ($288)."

“Those who borrow 600 million rials and 400 million rials should monthly pay 6.6 million rials and 4.4 million rials, respectively.”

The Housing Savings Account scheme provides applicants from Tehran with loans of up to 800 million rials ($26,500) while the ceiling is 600 million rials ($19,930) in towns with a population over 200,000 and 400 million rials ($13,290) for buyers in towns with a population of less than 200,000.

The scheme, targeted at first-time homebuyers, requires applicants to make an initial deposit and wait for a year to become eligible for the credit.

"The rate cut is aimed also at encouraging more people to sign up for the scheme and at the same time seeks to promote the culture of saving among the people," the senior banker was quoted as saying.