Home Purchase Loan Subsidy Scheme

 

 

1. Purpose and scope
Home Purchase Loan Subsidy Scheme is a subsidy scheme for the monthly housing installment loan, which is approved for the purpose of purchasing self-used property in free property market by authorized credit organizations (bank) of Macao Special Administrative Region. This scheme is mainly subsidized for the interest of the monthly installment loan.

2. Application Qualification

(1) The bank's evaluated price selling price of the housing unit must be less than MOP2,600,000.00;
(2) The amount of loan approved by the bank must be less than 90% of the above-mentioned amount;
(3) The utilization licence of the housing unit has to be issued;
(4) If the utilization licence has not yet been issued (i.e. pre-completion housing unit), a project licence issued by the administrative entity must be provided, the provisional agreement for sale and purchase must be established and the housing unit must be registered at Real Estate Registry;
(5) The housing unit must be registered as residential purpose at Real Estate Registry.
(6) The provisional agreement for sale and purchase must be established after the effective day of By-law No. 17/2009.


3. Important notice for Applicants

1. All the families or individuals who live in Macao Special Administrative Region can apply for the subsidy, but the housing unit must be self-used.
2. Family means two or more persons live together because of marriage, common-law marriage, consanguinity, affinity or adoption.
3. The spouse(s) of the family member(s) has/have to be listed in the application form, except the spouse(s) is/are non-permanent Macao resident(s).
4. In accordance with the stipulation of By-law No. 17/2009, application has to be made by the individual or at least one of the family members who fulfils the following qualifications:
 
Applicant must:
(1) be at least 21 years of age;
(2) reside in Macao not less than 7 years;
(3) be a holder of valid Macao SAR permanent identity card.
5. All the family members and their spouses must not:
 
(1) be owners of any housing property or housing units, and owners or concessionaires of any private land within last 3 years counted from the application form submission date and before the approval day of the subsidy issues;
(2) be debtors of any home purchase loan before the effective date of By-Law No. 17/2009 and before the approval day of the subsidy issues;
(3) the listed members of other application forms approved by By-Law No. 17/2009, Decree-Law No. 35/96/M (8th July) or By-Law No. 24/2000—The Scheme of Credit Subsidy for Personal Housing Mortgage Loans (4% Bank Interest Subsidy) ;
(4) the listed members of economical housing application forms of another applied families approved by Decree-Law No. 13/93/M (12th April).
6. If there is reasonable explanation, President of Housing Bureau can exceptional approve the elimination of family member(s) from a subsidized family and permit he/she to apply for the subsidy application, in accordance with the stipulation of Decree-Law No. 35/96/M (8th July), By-Law No. 24/2000—The Scheme of Credit Subsidy for Personal Housing Mortgage Loans (4% Bank Interest Subsidy), Decree-Law No. 13/93/M (12th April) or By-Law No. 17/2009.


4. Application Procedures

1. The subsidy has to be applied by submitting the completed application form to Housing Bureau (with applicant's signature).
2. Photocopies of all family members' identification documents have to be submitted with the application form.
3. Application form has to be submitted after the loan approval by the bank and before the establishment of the loan agreement by certificate.
4. In order to comply with the arrangement of the subsidy grant, the process order of the application will be defined in accordance with the sorting order of the receipt number of the application form.
5. If outstanding documents need to be submitted, the receipt number of the application form will be the one which defines after receiving all the required documents.

5. Application Progress
The application result will be informed to the applicant within 30 days counted from the day that all the necessary documents had been submitted. Housing Bureau will issue an approval declaration within the above-mentioned period and photocopies will be sent to Monetary Authority of Macao and the related bank.

6. Amount of the Subsidy
The amount of subsidy is counted by the interest of first MOP 1,000,000.00 of the total amount of the loan approved by the bank in accordance with its standard.

7. Issuing length and Subsidized Rate

1. No matter how long the length of mortgage loan repayment is, the maximum subsidy issuing length is 10 years counted from the issuing date of the permission.
2. The highest subsidized rate is 4% per year.
3. If the interest amount of the bank is less than the subsidized amount, the amount issued will equal to the interest amount of the loan.
4. The subsidized amount is defined by the following formula:

 

B =(Rc - Ra x Cb ) x J x D ÷365

                      C

 
(1) B represents the subsidized amount;
(2) Rc represents the balance due of the loan counted by Monetary Authority of Macao
(3) Ra represents the amount of the advance reimbursement;
(4) J represents the subsidized rate;
(5) D represents the number of days for loan repayment;
(6) C represents the amount of the bank loan;
(7) Cb represents the amount of the loan which can be subsidized.

8. The Establishment of the Certificate

1. The establishment of the loan agreement by certificate must be done within 1 year counted from the day the approval declaration issued. Otherwise the issue of subsidy will be terminated.
2. If reasonable explanation is given and approved by Housing Bureau within the above-mentioned period, the period for the establishment can be extended relatively, but the extension limit is 2 years.
3. Purchase certificate should be established simultaneously with the mortgage certificate.

9. Transfer and Second Mortgage

1. The issue of the subsidy will be terminated if the beneficiary transfers the ownership of the housing unit (excluding the transfer of ownership is due to inheritance) within 5 years counted from the date of establishment of the loan agreement. The beneficiary also needs to return the whole amount of the received subsidy and the stipulated interest.
2. The issue of subsidy will be terminated but the amount of the subsidy received need not be returned under one of the following situations:
 
(1) Beneficiary transfers the ownership of the housing unit (excluding the transfer of ownership is due to inheritance) within 5 years counted from the date of establishment of the loan agreement.
(2) Beneficiary claims for second mortgage loan of his/her housing unit;
(3) Beneficiary mortgages the housing unit to another bank.

10. Punishment

1. Beneficiary needs to return double of the whole amount of the received subsidy under the following situations:
 
(1) Use the self-owned housing unit for other purposes; Self-owned housing unit means the practical and long-term residential place of beneficiary and his/her family member(s);
(2) Beneficiary or any of the listed family members of the application is found that not fulfilling the application qualification after the approval of the subsidy application.
2. If the beneficiary owes the monthly installment of the housing unit more than 3 months, not only the issue of the subsidy will be cancelled by Housing Bureau, he/she also needs to return the whole amount of the received subsidy.
3. If two beneficiaries organize a new family because of marriage or common-law marriage, both of them have to make a written form of announcement to inform Housing Bureau for the cancellation of the subsidy application for one of their housing unit within 3 months after the above-mentioned situation happened, the amount of subsidy need not to be returned and the housing unit will not be restricted by the related regulation. Otherwise, he/she will need to return double of the amount of received subsidy.

For more information, please read By-law No. 17/2009 or contact Housing Bureau.