Home loan window now opens?

The procedure of consumption loans such as house and car purchase has been eased and banks are listening to customers to provide them best options, the local online newspaper Dau Tu Chung Khoan (Securities investment) reported.

Several banks have resumed property loans with lower interest rate of 21-24%, down from previous 26-27% per annum with flexible terms from 10 years to 25 years, depending on the banks’ policies as bankers expected lending interest rates will gradually fall on the government’s strict enforcement of deposit cap at 14% p.a.

The Interest rates on home and mortgage loans at ANZ Vietnam approached 21% per annum and customers can choose to fix the rates under 1, 3 or 6 month terms, the bank’s manager revealed.

Vietnam Technological and Commercial Joint Stock Bank (Techcombank) set interest rates on home loans at 22.5%, with maximum loan term of 25 years, said a bank’s credit officer, adding that the policy will not be applied for borrowers over 60 years of age.

At the Asia Commercial Joint-Stock Bank (ACB), home loans can be extended up to 10 years at 21-24% annualized interest rates.

Banks suggested investors to borrow for real estate purchase, explaining that property price currently decreased by 30-35%.

Earlier this year, the State Bank of Vietnam, the country’s central bank, asked credit institutions to cut proportion of loans in non-production sector to 16% and at that time the property loans were classified as non-production.

Source Sophie / NewsWriter/ StoxPlus

Tags: Vietnam Property market, Vietnam property sector, vietnam real estate market