Title: Navigating Tehran’s Housing Finance: A Surge in Loan Certificate Costs
A Sharp Increase in Costs
Recent trading on Iran’s over-the-counter (IFB) market has seen a significant and unprecedented rise in the price of housing loan certificates, substantially increasing the upfront cost for applicants seeking home purchase loans. According to market data, the price for each certificate for the 2024 and 2025 loan tranches rose by approximately 5 percent, settling between 134,000 and 137,000 tomans. This upward trend continued the following day, with prices reaching about 137,100 tomans per certificate.
Robust Market Activity
Trading volume was notably high. For the “Tase 1404” symbol, over 430,000 certificates, valued at nearly 59 billion tomans, were traded. Similarly, for the “Tase 1403” symbol, more than 154,000 certificates, worth 20 billion tomans, changed hands. This activity marks a departure from the recent months, where prices typically fluctuated within a 107,000 to 114,000 toman range. Analysts attribute the current surge to a combination of reduced supply from certificate holders and the overall positive momentum in the capital market.
Financial Implications for Homebuyers
The financial impact on couples seeking a home in Tehran is considerable. The maximum combined loan package for them includes a 1 billion toman housing loan plus a 280 million toman construction loan. To access this 1.28 billion toman facility, applicants must purchase 2,560 loan certificates. At the current price of 137,000 tomans per certificate, the total cost for the required certificates amounts to a significant sum. This effectively means that couples must pay over one-third of the total loan value upfront just to secure the right to the loan.
For individual applicants in Tehran, who are eligible for a 500 million toman purchase loan and a 160 million toman construction loan, the requirement is 1,280 certificates. This translates to an upfront cost of approximately 175 million tomans.
Seeking Solutions and Mitigating Measures
Applicants wishing to obtain a loan quickly without a prior bank deposit are obligated to purchase these certificates from the IFB. In the past, Bank Maskan has implemented an alternative “loan without certificates” scheme, which allowed for 50 percent of the loan value to be paid without this prerequisite, a measure that had a substantial effect on reducing costs for citizens.
Given the renewed surge in certificate prices, economic experts are suggesting that Bank Maskan could reactivate the option for partial loan disbursement without certificates for specific groups, such as young couples and first-time homebuyers, to alleviate the financial burden and support their housing aspirations.