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Everything You Need to Know about the NO VIS Subsidy

If you’re thinking about investing in or buying your first home, you may be wondering: What is the new subsidy offered by the National Government for Non-VIS housing financing? At Mendebal, we’ve got you covered.

WHAT IS THE NON-VIS SUBSIDY?

This benefit provides a fixed monthly coverage of $454,263 COP, which is applied to the current interest on your mortgage. The subsidy applies during the first 7 years (that is, the first 84 payments of your home), which is equivalent to 42 minimum wages, representing a total benefit of $38,152,092 COP for obligations disbursed in 2021.

The subsidy is granted at the time of the mortgage disbursement or the start of a Housing Leasing contract. It applies only to current interest payments and does not cover other concepts such as late fees or principal.

CONDITIONS TO QUALIFY

To access this benefit, both you and your desired home must meet the following:

  • All families can access the subsidy, regardless of income level.
  • Available for first-time homebuyers or current homeowners in the country.
  • Applies to the purchase of new urban housing with a commercial value not exceeding 500 SMMLV (around $454.263 million COP, based on 2020 SMMLV).
  • Families who have previously received an interest rate subsidy from the National Government cannot access this new subsidy.

HOW DOES THE SUBSIDY WORK?

Example application:

  • Commercial appraisal: $220,000,000 COP (below 500 SMMLV)
  • Term: 20 years
  • Monthly payment: $1,372,000 COP
  • Subsidy: $454,263 COP
  • Monthly payment after subsidy: $917,737 COP for the first 7 years

HOW TO APPLY

Applicants must submit the Non-VIS Subsidy Application Form along with their mortgage or Housing Leasing application. This form will be provided by the bank managing your mortgage.

  • The subsidy is assigned at the time of disbursement and depends on available quotas.
  • Only applies to new disbursements, not existing loans.

CAN CURRENT HOMEOWNERS APPLY?

Yes, homeowners can apply without restrictions. For 2021 and 2022, the National Government allocated 16,000 spots for current homeowners and 24,000 spots for non-owners.

DOES IT APPLY TO USED HOUSING?

No, the subsidy is only for new urban housing.

DOES IT APPLY TO OFF-PLAN PURCHASES?

Yes, as long as the mortgage disbursement or Housing Leasing contract meets the requirements and spots are available.

HOW MANY TIMES CAN YOU RECEIVE THIS BENEFIT?

Only once.

WHY COULD YOU LOSE THE SUBSIDY?

The subsidy may be lost due to:

  • Being late on three consecutive payments. Coverage is lost the day after the last missed payment.
  • Paying off the mortgage or leasing contract early.
  • Assignment of the credit by the borrower.
  • Acceleration of the loan term as stipulated in the contract.
  • Any other cause established by the National Government.

Now that you know everything about the Non-VIS Subsidy, it’s time to visit our VIRTUAL SALES OFFICE by clicking HERE and choose the home or apartment of your dreams.