Housing Finance Policy

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      A. Legal and Regulatory Framework

      A.1 Legal and Regulatory Framework
      VariableEnd of 2015End of 2014End of 2013SourcesVar ID
      Basis of the legal system: Civil, Common, Islamic, Other? (Describe)Civil LawCivil LawCivil lawA.1.1
      Are there specific laws that deal with mortgages? YesYesYesA.1.2
      Registration/Transfer of titles:A.1.3
      Does the law clearly define different types of property rights?YesYesYesA.1.3.1
       Are property rights easily transferable?NoNoNoA.1.3.2
      Identify barriers to the registration/ transfer of property title."The registry for real estate is in Cuba, a result of the Government's relationship. This makes it quite difficult to conduct proper real estate transactions or to identify owners.""The registry for real estate is in Cuba, a result of the Government's relationship. This makes it quite difficult to conduct proper real estate transactions or to identify owners.""The registry for real estate is in Cuba, a result of the Government's relationship. This makes it quite difficult to conduct proper real estate transactions or to identify owners."A.1.3.3
      Typical number of days needed for the transfer of title52 days52 days52 days
      WDI
      		A.1.3.4
      Can liens be effectively enforced?NoNoNoA.1.4
      Are there legal constraints on mortgage features?YesYesYesA.1.6
      Interest rate capsYesYesYesA.1.6.1
      Other  Yes
      Venezuela Government Press Report - http://venezuelanalysis.com/news/7771
      		A.1.6.4
      Is there specialized legislation covering:A.1.9
      B. Housing Finance Subsidies
      B.1 Subsidies to Housing Finance Institutions
      VariableEnd of 2015End of 2014End of 2013SourcesVar ID
      Are there subsidized funding sources for mortgage lenders?YesYesYesB.1.1
      Labor or other tax funds for mortgage lendingYesYesYesB.1.1.3
      Is the lending side of the housing finance system subsidized?YesYesYesB.1.2
      Guarantees for mortgage loansYesYesYesB.1.2.2
      B.2 Subsidies to Households
      VariableEnd of 2015End of 2014End of 2013SourcesVar ID
      Are there subsidies to households on housing finance?YesYesYesB.2.1
      Interest rate subsidies by special government fundsYesYesYesB.2.1.1
      Down-payment subsidies YesYesYesB.2.1.3
      Other  YesB.2.1.6
      Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
      C. Taxation
      VariableEnd of 2015End of 2014End of 2013SourcesVar ID
      What taxes apply to Residential Real Estate?C.1
      Tax on property (home-owners) YesYes C.1.1
      Property transaction taxes (purchase/selling)YesYes C.1.2
      Tax on capital gains on property YesYes C.1.5
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      Notes: "Capital gains on real property are taxable in Venezuela according to progressive tax table rates… the gain may not be taxable if it results from the sale of the principal family residence, if the gain is reinvested in another principal home."
      Notes: "Capital gains on real property are taxable in Venezuela according to progressive tax table rates… the gain may not be taxable if it results from the sale of the principal family residence, if the gain is reinvested in another principal home."
      Notes: BANESCO is the country's largest bank by market share.
      Notes: Base Year
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Figure listed is information of mortgage loans from banking system but not limited to housing sector.
      Notes: Fund for Obligatory Savings for Housing (FAOV) consists of savings from individuals and employers (3% of monthly salary of employees; 2% paid by employer and 1% by worker). These funds allow workers progressive access to housing loans and to qualify for mortgage subsidies sponsored by BANAVIH through commercial banks.
      Notes: Fund for Obligatory Savings for Housing (FAOV) consists of savings from individuals and employers (3% of monthly salary of employees; 2% paid by employer and 1% by worker). These funds allow workers progressive access to housing loans and to qualify for mortgage subsidies sponsored by BANAVIH through commercial banks.
      Notes: Fund for Obligatory Savings for Housing (FAOV) consists of savings from individuals and employers (3% of monthly salary of employees; 2% paid by employer and 1% by worker). These funds allow workers progressive access to housing loans and to qualify for mortgage subsidies sponsored by BANAVIH through commercial banks.
      Notes: Fund for Obligatory Savings for Housing (FAOV) consists of savings from individuals and employers (3% of monthly salary of employees; 2% paid by employer and 1% by worker). These funds allow workers progressive access to housing loans and to qualify for mortgage subsidies sponsored by BANAVIH through commercial banks.
      Notes: Government can help low-income households with a one-time or gradual disbursement of money to own a house, under Direct Subsidy scheme.
      Notes: Government can help low-income households with a one-time or gradual disbursement of money to own a house, under Direct Subsidy scheme.
      Notes: Government can provide a direct housing subsidy once to low income families who qualify for such assistance. Subsidy will be granted either in a single or progressive way toward acquisition, expansion, self-construction, or improvements of a main dwelling.
      Notes: Government can provide a direct housing subsidy once to low income families who qualify for such assistance. Subsidy will be granted either in a single or progressive way toward acquisition, expansion, self-construction, or improvements of a main dwelling.
      Notes: Government sponsored Mortgage Guarantee.
      Notes: Government sponsored Mortgage Guarantee.
      Notes: Interest rates are capped at 4.33%,10.66% and 16.4% for low, medium and high income individuals respectively.
      Notes: Interest rates are capped at 4.33%,10.66% and 16.4% for low, medium and high income individuals respectively.
      Notes: Interest rates are capped at lower levels by law depending on income bracket. 4.66% interest rate for income less than 4 times minimum wage. 6.66% interest rate for income between 4-6 times minimum wage. 8.66% interest rate for income between 6-8 times minimum wage. 10.66% interest rate for income between 8-15 times minimum wage. These social interest rate caps apply only to borrowers who contribute their income to the Fondo de Ahorro Obligatorio para la Vivienda (FAOV).
      Notes: Interest rates are capped at lower levels by law depending on income bracket. 4.66% interest rate for income less than 4 times minimum wage. 6.66% interest rate for income between 4-6 times minimum wage. 8.66% interest rate for income between 6-8 times minimum wage. 10.66% interest rate for income between 8-15 times minimum wage. These social interest rate caps apply only to borrowers who contribute their income to the Fondo de Ahorro Obligatorio para la Vivienda (FAOV).
      Notes: Interest rates are capped at lower levels by law depending on income bracket. 4.66% interest rate for income less than 4 times minimum wage. 6.66% interest rate for income between 4-6 times minimum wage. 8.66% interest rate for income between 6-8 times minimum wage. 10.66% interest rate for income between 8-15 times minimum wage. These subsidies are funded by the obligatory contributions from employees and employers, and loans are guaranteed by government sponsored Mortgage Guarantee Fund.
      Notes: Interest rates are capped at lower levels by law depending on income bracket. 4.66% interest rate for income less than 4 times minimum wage. 6.66% interest rate for income between 4-6 times minimum wage. 8.66% interest rate for income between 6-8 times minimum wage. 10.66% interest rate for income between 8-15 times minimum wage. These subsidies are funded by the obligatory contributions from employees and employers, and loans are guaranteed by government sponsored Mortgage Guarantee Fund.
      Notes: Interest rates are capped by law and are called Social Interest rates.
      Notes: Interest rates are capped by law and are called Social Interest rates.
      Notes: Lending institutions are mandated to lend 20% of their portfolio towards mortgages.
      Notes: Lending institutions are mandated to lend 20% of their portfolio towards mortgages.
      Notes: National Percentage
      Notes: Real estate taxes are set by the municipality on which property is located.
      Notes: Real estate taxes are set by the municipality on which property is located.
      Notes: The Congress of the Republic of Venezuela passes laws on mortgages and regulates the industry.
      Notes: The Congress of the Republic of Venezuela passes laws on mortgages and regulates the industry.
      Notes: The Congress of the Republic of Venezuela passes laws on mortgages and regulates the industry.
      Notes: The Congress of the Republic of Venezuela passes laws on mortgages and regulates the industry.
      Notes: The Guarantee Fund covers the payment of principal, interest owed, premiums owed, trial costs, condomonium fees, utility charges, municipal taxes and hosing repairs associated with financing contracts whose level of delinquency will lead to foreclosure. The guarantee will also cover payment of balance due in the case of death or portion of balance due in case of unemployment.
      Notes: The Guarantee Fund covers the payment of principal, interest owed, premiums owed, trial costs, condomonium fees, utility charges, municipal taxes and hosing repairs associated with financing contracts whose level of delinquency will lead to foreclosure. The guarantee will also cover payment of balance due in the case of death or portion of balance due in case of unemployment.
      Notes: The Guarantee Fund covers the payment of principal, interest owed, premiums owed, trial costs, condomonium fees, utility charges, municipal taxes and hosing repairs associated with financing contracts whose level of delinquency will lead to foreclosure. The guarantee will also cover payment of balance due in the case of death or portion of balance due in case of unemployment.
      Notes: The Guarantee Fund covers the payment of principal, interest owed, premiums owed, trial costs, condomonium fees, utility charges, municipal taxes and hosing repairs associated with financing contracts whose level of delinquency will lead to foreclosure. The guarantee will also cover payment of balance due in the case of death or portion of balance due in case of unemployment.
      Notes: The registry for real estate is in Cuba, making it difficult to conduct proper real estate transactions or to identify owners.
      Notes: The total property transfer tax, including all duties and payments, is 2.5%
      Notes: Workers and employers contribute 3% of income (1% and 2% respectively) toward the Fondo de Ahorro Obligatorio para la Vivienda (FAOV). Contributors to this fund are eligible for housing loan subsidies.
      Notes: Workers and employers contribute 3% of income (1% and 2% respectively) toward the Fondo de Ahorro Obligatorio para la Vivienda (FAOV). Contributors to this fund are eligible for housing loan subsidies.
      Notes: Workers and employers contribute 3% of income (1% and 2% respectively) toward the Fondo de Ahorro Obligatorio para la Vivienda (FAOV). Contributors to this fund are eligible for housing loan subsidies.
      Notes: Workers and employers contribute 3% of income (1% and 2% respectively) toward the Fondo de Ahorro Obligatorio para la Vivienda (FAOV). Contributors to this fund are eligible for housing loan subsidies.