Many HCM City based commercial banks have recently cooperated with investors to construct houses to be paid instalment or offer residents loans to repair and buy houses, settling home difficulties for residents, particularly for low income earners.
Presently, many banks are launching services related to land, house and the real-estate market. A number of commercial banks have built real-state centres or supermarkets such as Asian Commercial Bank (ACB), Vietnam Export and Import Commercial Bank (Eximbank), the second transaction department of Industrial and Commercial Bank of Vietnam (Incombank) and HCM City Housing Development Bank.
Some other banks are offering loans for repairing, buying houses and changing old house for new ones.
Presently, such commercial banks as Eastern Asia Bank (EAB), Oriented Commercial Bank (OCB) and Saigon Thuong Tin Commercial Bank (Sacombank) have targeted at condominium projects, high rise projects and contributed capital with investors, offered individuals loans to build and buy houses.
In addition to lending investors of house development projects, many banks also lend home buyers to buy houses of such investors. With such a way, banks can safely disburse their capital because home buyers are required to have stable income. In turn, home buyers have an opportunity to own houses and make instalment payments for a long-term according to their income.
Commercial banks now offer loans worth 50-70% of value of houses. The lending time can lasts from seven to 10 years, particularly some banks offer loans with a term of 15-20 years.
According to many experts, that banks inject capital into house development projects not only handle capital difficulties for businesses and home buyers but also boost development of the property market. Nevertheless, many banks remain cautious of offering such loans.
In fact, because of limited medium and long-term capital of banks, lending amount to home buyers remain low.
Additionally, home buyers are still hard to access banking loans because they are required to have mortgaged assets while lending interest rates are high with the lowest rate of up to 0.8% per month.