When acquiring a property in a foreign country, the financial aspect plays a key role in the buying behaviour. The concern of how to finance your property is common to any person wanting to go abroad.
Mortgage services in Vietnam
Mortgage services remain, for the moment, not very developed in Vietnam. However, it is a business that has been recently improving, slowly, but surely. The Vietnamese people are trying to improve their mortgage offers in order to adapt to the growing demand of mortgages, prices of properties going down and profitable interest rates.
This emerging market offers housing loans with low interest rates (around 12 to 18 percent depending on the bank). Mortgages are mainly financed by foreign banks, such as HSBC, AZN and Citybanks. Mortgages are also available with Vietcombank, which is a state-owned bank.
Despite that the business is developing, the amount of offers, as well as choosing this option, still remains quite unusual. It is not common for Vietnamese homebuyers to bankroll their home with a mortgage. As for expatriates, it consequently may be recommended that you refer to your home country for a loan.
However, taking into consideration that Vietnam is improving their mortgage offers, do not hesitate to have a look into the options they may offer you!
How to get a housing loan in Vietnam
In order to get a housing loan with a Vietnamese bank, there are various documents you will be asked to provide.
- A personal ID or passport of the future homeowner
- The family genealogy book (Sổ hộ khẩu)
- Proof of income (which has to be at least three million Vietnamese dong)
- A permanent residence card (valid for at least 12 months)
- Security assets
- A legal contract of house selling duly signed
It is possible to get mortgages that cover up to 70% of the total amount of the sell, and sometimes even up to 100%, if the house is secured by assets.
Pay attention to the amount of time you have to repay the loan. For example, a loan through Vietcombank must be paid in full within 20 years.