“Housing finance should not be limited only to mortgages,” Rafael Tuts, Director of the Global Solutions Division at UN-Habitat, said at the conclusion of the session titled “A New Deal for Housing Finance” held within the framework of WUF13, APA-Economics reports.
He stated that the problems in the field of housing finance are not related only to a lack of financing: “The issue is also about how financing is structured, whom it serves and what outcomes it promotes.”
Rafael Tuts noted that a large portion of low-income families remain outside the formal financial system due to informal incomes, lack of collateral and rigid lending models.
According to him, housing finance should not be limited only to mortgage loans, and rental financing, incremental construction financing, community-based financing models, state housing banks and blended financing mechanisms should also be developed in this area.
The UN-Habitat official emphasized that public financing should play not a passive but an encouraging role: “Subsidies, guarantees, infrastructure investments and land policy can help attract private capital.”
Rafael Tuts added that the new housing finance system should aim not only to raise more funds, but also to build better mechanisms and inclusive cities.