An amendment has been made to Act 3 of March 1985, which establishes a preferential interest rate system on mortgages, increasing the limit of the first band from $35,000 to $40,000.
From a press release issued by the Ministry of Economy and Finance (MEF) of Panama:
The Bill No. 567, amending an article of Act 3 of 1985, which establishes a preferential interest in certain mortgage loans and modifies the first band for preferential interest loans, from $35,000 to $ 40,000, was approved on its third reading by the plenary of the National Assembly, said the Minister of Economy and Finance, Frank De Lima.
The Social Housing Fund (Fondo Social para la Vivienda) in El Salvador will keep the interest rate for social housing construction at 6%.
Francisco Guevara, president of the Social Housing Fund (FSV by its initials in Spanish), explained that this was because the housing supply was less than expected due to red tape delays.
"Some housing projects suffered from lack of technical documents which were in the process of being drawn up, or awaiting inscription in the National Registry. This halted three projects", said Guevara.
The Social Housing Fund plans to provide $46 million in for housing construction, and another $44 million for purchasing a used house.
According to an article in Elmundo.com.sv this year, the Social Housing Fund (FSV) "expects to increase lending both for new and used housing. In addition, it will reinforce credit for Salvadorans abroad and other lines of financing they offer. "
In order to address issues related to urban development and housing finance, a meeting will take place of bankers, developers and city officials, from 3 to 5 December, in Lima, Peru.
A statement of the Guatemalan Chamber of Construction reads:
The Inter-American Housing Union (UNIAPRAVI) in conjunction with the Ministry of Housing, Construction and Sanitation of Peru the fund MIVIVIENDA SA and the Peruvian Chamber of Construction will hold in the city of Lima, Peru, from 3 to 5 December 2012 the III Inter-City Forum on Housing Finance.
In light of rumors over possible changes to mortgage conditions, Nicaraguan real estate developers are asking the country's banks not to go through with them because they would affect the sector’s growth.
Alberto Atha, president of the Chamber of Builders of Nicaragua (Cadur), said that a rumor is spreading that some banks will increase interest rates on mortgage loans by between one and two percentage points and the premium could be increased by 15 %. "We are convinced that such a move would affect and stagnate the growth process that the industry is experiencing." ... although the changes are not yet official, they are holding talks with banks asking for these measures not to be applied in the immediate future. "
In recent months the interest rates for new home purchases have declined from an average of 13.02% to 12.23%.
Banking institutions have added new options to their loan portfolios, such as funding for improvements and to buy a used house.
"Oscar Sequeira, coordinator of Statistics at the Construction Chamber of Guatemala (CGC), said that interest rates are down worldwide due to policies pursued by central banks and that has had an impact on reducing the level of fees charged for housing finance", reported Elperiodico.com.gt.
The National Assembly has given the final approval to increase ceiling rate for preferential interest to $120,000, which will have a direct impact on the housing market.
The plenary of the legislature approved on third reading bill no. 241, by which the ceiling for preferential interest rates has been increased to $120,000 reported Capital.com.pa.
"The incentives that have been updated by the Act are: Preferential Interest, increasing the lower limit from $30,000 to $35,000, homes valued up to $35,000 will receive a subsidy which covers the entire interests to the corresponding market, and similarly increases the upper limit from $80,000 to $120,000, where homes will receive a subsidy of up to two percentage points (2%) from the market rate," said the Minister of Economy and Finance, Frank De Lima.
A joint housing project between a bank and the Chamber of Construction will be carried out in Tegucigalpa, Honduras.
The president of the National Agricultural Development Bank (Banadesa), Johnny Handal, and vice president of the Honduran Chamber of Construction Industry (Chico), Oscar Calona signed off on a program for building popular housing.
The project will benefit families earning less than four minimum wages, and will start with almost a thousand houses in Tegucigalpa, which are to be financed with funds that will be raised by Banadesa’s Private Contributions Regime (PAR), the newspaper La Tribuna reported on its website.
President Martinelli announced that the maximum value for a property to be considered for the preferential interest rate will be increased to $120,000.
The measure must be passed in the National Assembly by amending the act, which is expected to happened very quickly.
A current limit of $80,000 has been established as the maximum value of homes that can be financed under the law, which allegedly has led to low-quality housing solutions being built to keep costs within that range.
Proposals submitted by the Costa Rican government are awaiting approval by Congress.
Two bills intended to stimulate the middle-class housing market were presented over a year ago and have still not received approval from the Costa Rican legislators.
Among the proposals that have not progressed is one that refers to a five-year exemption from paying property tax for homes valued under $145,000 in the 48 months following the law’s inception.
They were built to be sold using government subsidies, but an increase in the cost of building materials has pushed their real price above the limit established by the law.
The Government is maintaining its position of not raising the price ceiling of $20 000, stating that this would not benefit poor families, but recognizes that it must find a solution to the problem.
In Costa Rica, this niche market was hit hardest by the U.S. housing crisis.
According to the Costa Rican Chamber of Construction the outlook is not encouraging and they do no foresee recovery in the short term.
Jose Alfredo Sanchez, vice president of the group, said "In Costa Rica, there has been a dramatic effect on the coast, where (project development) has not recovered in the short term because this would require strong economic growth in the U.S., which is not happening. "
Out of $ 99 million in loans it is estimated that 53% will be invested in new housing.
The trend over recent years has been the purchase of used housing, according to Thomas Chévez of the Social Housing Fund (FSV).
"The balance that could be achieved regarding the trend is because in 2011 the supply of new housing, specifically of social interest, will increase due to construction projects from the program “Casa para todos,” reports the article in Laprensagrafica.com.
BCIE and IDB funds will finance the "Casa para Todos" (Housing for Everyone) program.
The $ 70 million Inter-American Development Bank loan will go to build 6.373 homes for low-income families, of which 2.000 would be ready by March 2011.
The credit of the Central American Bank for Economic Integration (BCIE), of also $ 70 million, "will be implemented by the National Housing Fund (FONAVIPO), which will bid the affordable housing projects to developers," Elsalvador.com reported.