TBC Research: Inflow of Mortgage Loan Applications Grew by Monthly 52%
TBC Research has published a new report on Georgia’s economic recovery. Under the report, after the Government announced the mortgage loans subsidization program, the number of applications grew by monthly 52%.
“As for July 2, the 7-day average indicator has slightly declined, compared to the previous week. The market is waiting for the effect to come from the mortgage loans subsidization program”, the report reads.
As reported, the Government of Georgia announced the mortgage loans state subsidization program on May 28, while commercial banks started issuing mortgage loans as part of the mentioned program a week ago. The state budget will spend 70 million GEL on the program implementation for 5 years.
Under the program, the government will subsidize 4% of a mortgage loan’s interest for a period of 5 years. The Government will stop subsidizing the loan if the refinancing rate drops below 5%. Subsidies are issued for no more than 200,000-GEL mortgage loans issued from June 1, 2020, up to January 1, 2021