New Home Loan Interest Rate for Venezuelans

Mérida, January 4, 2008 ( January 1, 2009, the Lending Regime for Housing and Habitat Law takes into effect.

According to this law, Venezuelans have thirty years to pay off first housing loans, with the interest rate modified according to monthly income. Initial down payments are also not required, and loans can be granted for up to 100% of the cost of the house.

The maximum quota for loan repayments is set at 5-30% of monthly income. That is, those with monthly wages of Bs2,800 ($US 1300), according to the new law their minimum monthly repayment would be 5% and those earning BsF23,000 ($US 10,700) per month would have a monthly repayment minimum of 30%.

The government is also offering subsidies towards the price of the home, where families with a monthly income of BsF 799 ($US371) can receive a subsidy of BsF 46,000 ($US 21,400).  Those earning up to BsF 2,600 ($US 1200) can receive a subsidy of BsF 25,300 ($US 11,800) BsF 800 is the minimum monthly wage and also the pensioner income.

Previously, Venezuelans had a maximum of 20 years to pay the loan. Private banks can't profit from giving out bank loans, and currently are only offering loans of BsF 7,000-BsF 23,000 ($US 3300- $US 10,700), with a fixed interest rate of 10.11%.