Mortgage application tricks
Lenders may have been inundated with applications from young people regarding the My Home housing program, but that does not necessarily translate into numerous loan disbursements.
Bank data show that out of a total of 20,000 applications filed for participation in the government’s bank loan subsidy program, those who fulfill the criteria number just 13,500. However, only 10% actually come with a specific proposal for the purchase of a property.
The high number of applications also includes documents filed two or more times by the same person, as several people choose to apply at more than one bank for a mortgage through the program. Sector officials comment that “of course that does not mean there is no genuine interest in the program.”
Combined with the favorable terms of the My Home program that allow the purchase of a residence in an environment of interest rate hikes, the increased demand also reflects the high needs for house purchases that the growth of rents has created.
Most applicants seek to reserve a place in the program of subsidies even if they have not yet chosen a property; several applicants propose indicatively a house they may have seen, because the process prioritizes those who have proposed a specific asset.
