4% Bank Interest Subsidy

The Scheme of Credit Subsidy for Personal Housing Mortgage Loans (4% Bank Interest Subsidy) 

In 1996, in order to stimulate the weak property market and help inhabitants for purchasing their own properties, the government issued Decree-Law No.35/96/M and established the scheme of credit subsidy for personal housing mortgage loans, what we commonly call "4% bank interest subsidy". This system has been prolonged the duration of application and ended until the December of 1999. After the announcement of By-Law N°24/2000, a new round of "4% bank interest subsidy" has been started its implementation on 1st July 2000. It has also been extended the application duration and such system had been terminated on 30th June 2002. Beneficiaries of the 4% bank interest subsidy should pay attention to the following terms:

1. If the beneficiary owes the contribution of the housing more than 3 months, not only the subsidy will be cancelled, the beneficiary also have to return the whole amount of the subsidy received after the approval by Chief Executive.
2. If the beneficiary uses his/her self-occupied apartment for other purposes, he/she will be asked to pay back double of the received subsidy.
3. If two beneficiaries organise 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 discontinuation of the subsidy application for one of their housing, but the subsidy received need not to be returned (only appropriate for the applicants regulated by By-Law N°24/2000).

Notice about Reselling the Housing which has Applied for the 4% Bank Interest Subsidy
Beneficiary needs to return the whole amount of the subsidy and the stipulated interest if he/she resells his/her individual apartment within 5 years after the establishment of the loan contract by the certificate. Besides, the beneficiary has to apply to Housing Bureau by written form of request. After he/she returns the subsidy, Housing Bureau will issue a declaration for the beneficiary within 5 workdays (count from the day after submitting all the required documents), as a reference for him/her to handover the ownership of his/her apartment.

If the ownership of the individual apartment is handovered after 5 years, the subsidy will be terminated, except the transfer of ownership is due to inheritance.

Application forms related to 4% Bank Interest Subsidy 
For handling the application of:
- Termination of the subsidy and/ issue of declaration of the handover of individual apartment