Belarus citizens identified as eligible for loans at a rate of 1%
Buying a home in Belarus is no novelty, but recent changes have shaken things up. As of early June, Decrees No.94 and No.95 have been implemented, introducing innovative housing construction and lending methods.
These updates have unveiled who among Belarusians can qualify for a 1% mortgage to buy a property. The Deputy Head of the Main Department of the Ministry of Architecture and Construction, Innа Pіnkovs’ka, shared this info on the "First Information" TV channel. Interestingly, large families can obtain a preferential loan at 1% per annum for up to 40 years. Other categories of citizens can secure a 5% interest rate with a 20-year term, while residents of towns with a population of up to 20,000 can apply for a 3% per annum loan.
For a deeper understanding of the decrees, let's dive in:
Decree No.94 introduces a state-driven construction process for residential buildings, known as the state order mechanism. Here's how it works:
A construction company, acting as the customer, receives a preferential loan for building a residential complex and begins work. Meanwhile, the executive committee compiles lists of citizens eligible for state support and plans to provide them with apartments in this building. After the building is completed, contracts for the purchase and sale of apartments are finalized with the citizens, and the debt under the loan is transferred to them. This means potential homeowners don't have to find co-investors during construction, which can sometimes lead to complications.
Decree No.94 also includes an important innovation: if a candidate on the waiting list refuses to buy an apartment under the state order, the apartment will be offered to other eligible individuals, like young families or those who don't qualify for state support. Furthermore, some apartments in a building constructed under the state order may be allocated for rental and social housing.
Moving onto Decree No.95, it consolidates all the documents on state support for housing construction that have been adopted in the country over the years. Previously, we reported that the size and categories of such support, as well as the order and conditions for its provision, remained unchanged.
In terms of eligibility criteria for mortgage rates and the specifics of the state order mechanism for housing construction under Decree No.94, more details can be found in official Belarusian government sources or legal documents.
Large families and other citizens might need to meet specific requirements, such as family size, income levels, or local residency, to qualify for the 1% mortgage rate. Incentives for smaller towns could be aimed at promoting rural development, with eligibility linked to residency and economic contributions to the local community. The state order mechanism likely involves setting quotas for builders, providing subsidies, and ensuring that a portion of constructed units are allocated to eligible groups.
The innovative Decree No.94 has introduced the state order mechanism for residential building construction, which allows potential homeowners to secure a loan at preferential rates without needing co-investors during construction. Large families, along with other categories of citizens, can potentially qualify for a 1% mortgage if they meet specific requirements such as family size, income levels, or local residency.
In the realm of personal-finance and business, these changes could signify a significant shift in home-buying opportunities within Belarus, as the state order mechanism and reduced mortgage rates are likely to impact the overall housing market.
