Housing Finance Policy

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A. Legal and Regulatory Framework

A.1 Legal and Regulatory Framework
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Basis of the legal system: Civil, Common, Islamic, Other? (Describe) Civil LawMix of Civil and Customary Law
ACJR
A.1.1
Are there specific laws that deal with mortgages?  YesYes
Country Editor
A.1.2
Registration/Transfer of titles:A.1.3
Does the law clearly define different types of property rights? YesYes
Country Editor
A.1.3.1
 Are property rights easily transferable? YesYes
Country Editor
A.1.3.2
Identify barriers to the registration/ transfer of property title.  Some investors have reported unscrupulous individuals trying to sell fraudulently notarized documents related to real properties and mortgages
Country Editor
A.1.3.3
Typical number of days needed for the transfer of title 4040
WDI
A.1.3.4
Can liens be effectively enforced?  NoA.1.4
Number of months until lender acquires the property in case of foreclosure on a single-family residential property?  32
Doing Business--Mozambique
A.1.4.1
Cost of foreclosure process as a percentage of the value of a typical loan?   100%
Doing Business--Mozambique
A.1.4.2
Main causes of inefficiencies (legal, judiciary, administrative, cultural, etc.) Judiciary system of inefficient justiceproperty rights are not strongly protected, and law enforcement is uneven and inefficient due to judicial corruption; inefficient judicial system
Country Editor
A.1.4.3
Are there legal constraints on the types of mortgage products that are permitted? NoNo
Country Editor
A.1.5
Are there legal constraints on mortgage features? NoNo
Country Editor
A.1.6
Interest rate caps NoNo
Country Editor
A.1.6.1
Loan-to-Value cap NoNo
Country Editor
A.1.6.2
Payment-to-Income maximum NoNo
Country Editor
A.1.6.3
Other NoNo
Country Editor
A.1.6.4
Are there consumer rights for mortgage lending?  NoNo
Country Editor
A.1.7
Are there disclosure requirements for mortgage lending?  No
Country Editor
A.1.8
Is there specialized legislation covering:A.1.9
Issuance of covered mortgage bonds NoNo
Country Editor
A.1.9.1
Issuance of RMBS NoNo
Country Editor
A.1.9.2
B. Housing Finance Subsidies
B.1 Subsidies to Housing Finance Institutions
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Are there subsidized funding sources for mortgage lenders? NoNo
Country Editor
B.1.1
Special government lines of credit  NoNo
Country Editor
B.1.1.1
Government supported liquidity facility NoNo
Country Editor
B.1.1.2
Labor or other tax funds for mortgage lending NoNo
Country Editor
B.1.1.3
Tax breaks on mortgage bonds or RMBS NoNo
Country Editor
B.1.1.4
Loss and/or cash flow guarantees for RMBS NoNo
Country Editor
B.1.1.5
Other NoNo
Country Editor
B.1.1.6
Is the lending side of the housing finance system subsidized? NoNo
Country Editor
B.1.2
Shared credit risk through public/private mortgage insurance  NoNo
Country Editor
B.1.2.1
Guarantees for mortgage loans NoNo
Country Editor
B.1.2.2
Other NoNo
Country Editor
B.1.2.3
B.2 Subsidies to Households
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
Are there subsidies to households on housing finance? NoNo
Country Editor
B.2.1
Interest rate subsidies by special government funds NoNo
Country Editor
B.2.1.1
Buy-down of monthly/interest payments NoNo
Country Editor
B.2.1.2
Down-payment subsidies  NoNo
Country Editor
B.2.1.3
Subsidies to savings for mortgage loans NoNo
Country Editor
B.2.1.4
Mortgage interest deductibility from income tax NoNo
Country Editor
B.2.1.5
Other NoNo
Country Editor
B.2.1.6
Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
C. Taxation
VariableEnd of 2018End of 2017End of 2016SourcesVar ID
What taxes apply to Residential Real Estate?C.1
Tax on property (home-owners)  YesYes
Mozambique Legal Bureau
C.1.1
Property transaction taxes (purchase/selling) YesYes
Mozambique Legal Bureau
C.1.2
Mortgage transaction taxes  Yes
Country Editor
C.1.3
Tax on mortgage interest pmts  No
Country Editor
C.1.4
Tax on capital gains on property   No
Country Editor
C.1.5
Other  No
Country Editor
C.1.6
Are there tax benefits on rental properties? No 
Country Editor
C.2
back to top | Country Data:
Notes: All loans are fixed rate. Although 20 years is the maximum loan term, long term financing is not common. Average terms are closer to 5 years.
Notes: All loans are fixed rate. Although 20 years is the maximum loan term, long term financing is not common. Average terms are closer to 5 years.
Notes: All loans are fixed rate. Although 20 years is the maximum loan term, long term financing is not common. Average terms are closer to 5 years.
Notes: All loans are fixed rate. Although 20 years is the maximum loan term, long term financing is not common. Average terms are closer to 5 years.
Notes: All loans are fixed rate. Although 20 years is the maximum loan term, long term financing is not common. Average terms are closer to 5 years.
Notes: Although 25 years is the maximum loan term, long term financing is not common. Average terms are closer to 5 years.
Notes: Based on balance sheet
Notes: Both private and public bureaus were established in 2015
Notes: Estimation by Country Editor
Notes: More than value of loan (119%)
Notes: Secured by Life Insurance
Notes: Secured by Life Insurance
Notes: Secured by Life Insurance
Notes: Substandard housing is residential property that is not up to the local building or housing code. As there is no housing code, we used "bloco" as standard in urban areas
Notes: The Fund for Housing Promotion (FFH) has agreements with several banks to make mortgage loans accessible to public employees.
Notes: Urban minimum wages per month in USD. There is no longer a single minimum wage in Mozambique. We used min salary in non financial services
Notes: Urban minimum wages per month in USD. There is no longer a single minimum wage in Mozambique. We used min salary in non financial services
Notes: Urban minimum wages per month in USD. There is no longer a single minimum wage in Mozambique. We used min salary in non financial services
Notes: Urban minimum wages per month in USD. There is no longer a single minimum wage in Mozambique. We used min salary in non financial services
Notes: Urban minimum wages per month in USD. There is no longer a single minimum wage in Mozambique. We used min salary in non financial services
Notes: Urban minimum wages per month in USD. There is no longer a single minimum wage in Mozambique. We used min salary in non financial services
Notes: Urban minimum wages per month in USD. There is no longer a single minimum wage in Mozambique. We used min salary in non financial services