Housing Financing Models, Schemes, and Policies: Global Practices

Banks are essential entities of economies, and many investments and economic activities are highly dependent on the banking industry, so is the housing sector. The 2008 Global Financial Crisis resulted from poor credit granting and monitoring and was triggered by the subprime mortgage crisis. The mortgage system has been questioned since then. Beyond the mortgage system, many alternatives are being implemented by many countries. Some options include co-ownership, diminishing partnership, timeshares, lease-purchase contracts, etc. In addition, different housing schemes and policies, including German Bausparkassen, Infonavit, Minha Casa Minha Vida, Singapore Central Provident Fund, and many other programs, are being actively implemented. This chapter details global practices of housing financing models, schemes, and policies. Criticism of these programs is also discussed.