Banks turn away from speculators with new mortgage offers
  • By Minh Thuy | | September 04, 2012 03:59 PM
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Many commercial banks have raced to launch preferential mortgages for people seeking homes rather than providing loans for property speculators.

Vincom Village is among projects receiving VietinBank's preferential mortgages

Banks were previously keen to offer loans to property investors, but have now turned to customers who have a real need to buy homes. Offering mortgages will help potential home owners afford real estate and provide the project developers with much needed financial capacity to maintain their business activities.

Statistics revealed that around seven million low to medium income earners in urban areas need accommodation. Banks have become increasingly aware that a majority of the population aged between 16-50 accounts for more than 50% of the demand for housing.

VietinBank has co-operated with real estate investors to provide a VND5 trillion (USD238 million) mortgage package that will be rolled out to potential home buyers. Customers who buy apartments at Vingroup projects like Times City, Vincom Village and Royal Village will benefit an annual interest rate of 10% per year with a maxim term of 20 years.

VietinBank said it will only apply the preferential mortgages to people who have real demand for housing, not property speculators. Selected projects must be appraised for quality, efficiency and investor capacity.

VIB offers a VND1 trillion (USD47.6 million) mortgage for customers who want to buy, build or repair their houses at an annual rate of 9.9% for the first three months. From the 4th month, the interest rate will be adjusted based on the market changes.

Earlier, BIDV launched a VND4-trillion (USD190.4 million) mortgage with an interest rate of 16% per annum. The mortgage has a 15 year span and the loan can account for 85% of the house value.

Meanwhile, people who buy houses from projects funded by Vietcombank will be able to receive an annual interest rate of 0% for the first year from the bank.

Many others such as Eximbank, SeABank and ACB have also offered preferential mortgages for customers with real demand for accommodation.

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