Banks are racing to offer home loans on the back of rising demand for property that is seeing consumers not only buying new real estate but also refurbishing their current residence.
Asian Commercial Bank (ACB) expects to increase the maximum an individuals allowed to withdraw without a mortgage to 200 million VND (12,500 US$) at 1.1 - 1.15% interest rate per month, said Bui Tan Tai, director of the bank's Individual Consumer Division. All that clients have to do is prove their ability to repay the loan based on their monthly incomes.
ACB is one of the local pioneers in offering home loans without consumers having to take out a mortgage, and plans to offer more non mortgage based financial services for clients in the mid to upper-middle income bracket.
Orient Commercial Bank (OCB), Viet Nam Technological and Commercial Joint-stock Bank (Techcombank) and Sai Gon-Thuong Tin Commercial Bank (Sacombank) are also focusing heavily on the home loan market as people migrate to urban centres for work, increasing demand for apartment units.
In comparison, these banks are willing to finance up to 70%, or between 800 million VND to 2 billion VND, of an apartment's value, with instalments made over a 15-20 year period.
An Binh Bank (ABBank) is even willing to go as high as 90% over a 20-year term.
Source: Thanh Nien
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