Abu dhabi: '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.'

According to Azeri-Press News Agency, 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. He suggested that housing finance should not be confined to mortgage loans alone. Instead, alternative models such as rental financing, incremental construction financing, community-based financing models, state housing banks, and blended financing mechanisms should be developed to address these issues.

The UN-Habitat official emphasized the importance of public financing taking on an active role in housing finance. He proposed that subsidies, guarantees, infrastructure investments, and land policy could be instrumental in attracting private capital into the sector. Rafael Tuts further added that any new housing finance system should not only focus on raising more funds but also on building better mechanisms and fostering the development of inclusive cities.