In connection with the reduction in real estate transfer tax on residential property from 6% to 2% that took effect as of June 15, 2011, the Homeownership Guarantee Fund is to lower the guarantee for additional costs from 12% to 8%.
The Homeownership Guarantee Fund provides surety for mortgages with a National Mortgage Guarantee. This allows the person obtaining the mortgage to receive a discount on the interest owed to the bank. Additional costs that are included in the financing when purchasing a home also fall under the National Mortgage Guarantee.
In connection with the reduction in real estate transfer tax from 6% to 2%, the Homeownership Guarantee Fund is to lower the surety on additional costs from 12% of the purchase price to 8% of the purchase price for transfers that took place on or after July 7, 2011. For transfers before July 6, 2011, the Guarantee Fund will provide surety for the total 'old amount' of real estate transfer tax.