Bangladesh Bank is exploring a bond-based financing mechanism to ensure long-term funding for housing loans, the central bank governor said Sunday, as the country's leading real estate body pressed for a dedicated housing fund and single-digit interest rates on home loans.
The assurance came during a courtesy call by a delegation of the Real Estate and Housing Association of Bangladesh (REHAB) on Bangladesh Bank Governor Md. Mostakur Rahman at the central bank's headquarters.
Led by REHAB President Dr. Ali Afzal, the meeting covered the current state, challenges and prospects of the housing sector, with REHAB leaders urging the establishment of a special housing fund and long-term mortgage facilities at single-digit interest rates.
Governor said housing loans are among the most secure assets in the banking sector, which is why mortgage rates are already comparatively lower, running up to two percentage points below rates on many other loan categories.
He added that the central bank is working on a bond-based financing framework to ensure sustainable long-term funding for the housing sector, expressing confidence that the initiative, once implemented, would broaden mortgage access for ordinary citizens.
Afzal said affordable home loans under easy terms for first-time flat buyers would turn the homeownership dream of middle and lower-middle income people into reality. “At the same time, it will give the broader economy a further boost through housing sector activity.”
REHAB Senior Vice President Abdur Razzaque stressed the need to expand low-interest housing loan facilities to the district and upazila levels to support planned housing development and effectively decentralise Dhaka. “People will be more willing to settle outside the capital if affordable housing finance is available there.”
The delegation also included Vice Presidents Mohammad Akhter Biswas, Abu Khalid Md. Barkatullah and AFM Obaidullah, VP (Finance) Dr. Md. Harun-or-Rashid, and Director Tasnova Mahbub Salam, each of whom raised specific concerns and demands related to the sector.
Both sides expressed commitment to working jointly toward sustainable development of the housing sector, increased investment and broader homeownership access for the general public.