Govt mulls reviewing mortgage system

06 Sep, 2020 - 00:09 0 Views
Govt mulls reviewing mortgage system

The Sunday News

Leonard Ncube, Victoria Falls Reporter
THE Government is considering reviewing the mortgage system to make it favourable for ordinary citizens and enhance access to housing.
A mortgage is a legal agreement whereby a financial institution lends money to a borrower at interest in exchange for taking title of the debtor’s property such as a house with a condition that the conveyance of title becomes void upon payment of the debt.

Housing and Social Amenities Minister Daniel Garwe who was in Victoria Falls on Friday, said the mortgage system had collapsed because its conditions are not in sync with modern economy. He said consultations were taking place between his Ministry and the Ministry of Finance and Economic Development, Bankers Association of Zimbabwe and other partners to come up with a favourable system.

He said there are proposals to also waiver stamp duty, to make the system affordable to ordinary home seekers at a time when 90 percent of Zimbabweans are in the informal sector.

“We are thinking of revitalising the mortgage system to match our economy. Our economy is informal and people have no pay slips yet mortgage system that we have in the country was adopted from the Smith regime and is not speaking to the current economic environment.

“About 90 percent of Zimbabweans are self-employed, so the regulations and the system in its entirety does not allow them to participate in the mortgage system when seeking properties. And we are saying to banks we cannot just sit and relax and say the mortgage system has collapsed, let’s relook into it,” said Minister Garwe.

He said all parties are in agreement.

“Points were raised in those discussions with the Ministry of Finance, Bankers Association of Zimbabwe and other interested participants with respect to the stamp duty tax, and the suggestion is to have stamp duty tax holiday to ensure that the mortgage facilities are attractive to home seekers.

“We want a stamp duty that makes the whole mortgage system affordable to every home seeker. Every Zimbabwean’s commitment for shelter is the same as their commitment to religion, no Zimbabwean will default in mortgage the same way they never default rent.

“So we want the mortgage system to be available even to gold panners because they will be having money but what they don’t have is the pay slip. One good thing about a Zimbabwean is paying rent, a Zimbabwean will not default on anything that has to do with a house whether it’s rent or it’s a mortgage. Those that default are not in the social housing system, it’s those that are in the high end of the society and we are not focusing on those.”
@ncubeleon

Share This:

Survey


We value your opinion! Take a moment to complete our survey

This will close in 20 seconds