The real estate market now has shown certain recovery, which has become a driving force for banks to launch attractive credit packages for home buyers and lend to prospective real estate projects. The current capital flow into the real estate market is an opportunity to gradually reduce bad debts at banks now.
Not only have commercial banks boosted lending for homebuyers and capital-short project investors but State-owned banks have also actively funded real estate projects. Recently, Vietcombank launched a short-term promotional credit package for borrowers to buy and repair houses, purchase vehicles or run business at a relatively attractive interest rate of 7.99 percent per annum in the first six months for loans of 24-month or shorter maturity or in the first 12 months for loans of 24-month or longer maturity. After the preferential period, the rate will return to the normal rate of 11-12 percent per annum.
HD Bank is very active with property loans, especially for big investors. HD Bank recently introduced a zero-interest credit package for homebuyers. Accordingly, from now until the end of this year, HD Bank will lend customers to buy apartments in Celadon City Project with zero interest in the first 12 months. This is considered an attractive home loan package for the time being. According to HD Bank, real estate loans are presently accounting for nearly 30 percent of its total loans. In spite of huge fund for real estate market, this bank is still controlling in bad debt ration.
Currently, the lender has coordinated with nearly 200 projects to provide preferential loans to their buyers (usually bearing an interest rate 6.8 - 9 percent per annum). The loan value may reach 80 percent of the property value. HD Bank will launch more promotional credit programmes for homebuyers.
Other joint stock commercial banks such as Sacombank, Dong A Bank, Techcombank, TP Bank and OCB also had their soft loan packages for home buyers. The common interest rate is 11- 12 percent per annum (exclusive of first-year incentives). Meanwhile, foreign banks like HSBC and ANZ even introduced home credit packages with lower interest rates hovering at 7.5 percent per annum. However, borrowing conditions are stricter than domestic joint stock commercial banks.
Banks also increased loans for money-short real estate projects. Recently OCB partnered with Saconreal to support customers to purchase apartments in Jamona project (based in Ho Chi Minh City) and the loan value amounts to 70 percent of home value in 15 years. This project consists of 48 villas and townhouses, with the price starting from VND23.5 million per square metre. At present, OCB financed La Astoria project in District 2, HCM City.
OCB Deputy General Director Truong Dinh Long said OCB is cooperating with real estate companies to lend their customers to buy houses. Like Jamona City developed by Sacomreal, OCB also joined hands with other developers to lend homebuyers. Current lending rates are reasonable enough to borrow houses.
Techcombank recently promised to fund Masteri Thao Dien luxury residence in District 2, HCM City. The lender also helped the developer to manage the money customers pay to the latter. In case the investor fails to hand over houses to customers as stated in the contract, Techcombank will pay all benefits to customers, including advance value, interest and penalties subjected to the investor.
Falling interest rates are forecast to boost home loans, particularly when real estate prices have dropped substantially.
Luong Tuan
Vietnamese
