Bank legal reserves cleared to finance low-cost housing

[Dolores]

The Monetary Board authorized the use of bank reserves for lending for low-cost housing construction. The Monetary Board is making available RD$21.42 billion of the legal reserves to financial intermediation entities as of February 2023.

The Central Bank specified that the interest rate for these loans should not exceed 9% per year and for terms of up to five years.

The resolution, approved by the Monetary Board on 12 January 2023, establishes that 80% of the resources released are designated for financing of houses assessed at RD$4.5 million or less.

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[chico bill]

Lending to developers promising low cost housing or actual owners of those homes?
Likely the loans will be made only to 'friends' of the Central Bank managers.
But 9% per year here in DR - many would line up for those loans

 

[JD Jones]

Hard to make money building low cost homes.

 

[bob saunders]

Lending to developers promising low cost housing or actual owners of those homes?
Likely the loans will be made only to 'friends' of the Central Bank managers.
But 9% per year here in DR - many would line up for those loans

Yes, the current rate is around 11.5-12 %.

 

[malko]

9% a year sounds like the low end of a predatory loan, to me.
Maybe the days of cheap money are really behind us..... idk.

 

[bachata]

9% a year sounds like the low end of a predatory loan, to me.
Maybe the days of cheap money are really behind us..... idk.

I locked for 10 years a equity loan last year 3% ...
Thinking on building a ADU in my backyard with that money.

JJ

 

[malko]

I locked for 10 years a equity loan last year 3% ...
Thinking on building a ADU in my backyard with that money.

JJ

Not too sure what an equity loan is. Like when you put something up as a guarantee ( house, etc ...) ?
I borrowed against some stocks a year or 2 ago, at 0.5%. ....... and the way it works in my home country is I only pay the interest-- monthly--and then the capital once the term is up ( 6 years ).

And got a consumer loan ( as in no guarantee ) at 0.75 or 0.7% ). And I was fretting as it was the first time ever I took on debt lol.......

So, needless to say, loans in the DR are a big no-no for me. I shake my head and wonder how people do it...... like are they really paying a third more for things like a house or a car due to the credit ? Baffles me.

 

[bachata]

Not too sure what an equity loan is. Like when you put something up as a guarantee ( house, etc ...) ?
I borrowed against some stocks a year or 2 ago, at 0.5%. ....... and the way it works in my home country is I only pay the interest-- monthly--and then the capital once the term is up ( 6 years ).

And got a consumer loan ( as in no guarantee ) at 0.75 or 0.7% ). And I was fretting as it was the first time ever I took on debt lol.......

So, needless to say, loans in the DR are a big no-no for me. I shake my head and wonder how people do it...... like are they really paying a third more for things like a house or a car due to the credit ? Baffles me.

Yes is about the same, the house in warranty but it is lean on the capital that belongs to you after an appraisal as the property is not fully paid yet.

JJ