How to compare mortgage offers in Vietnam

How to compare mortgage offers in Vietnam

Choosing the right home loan in Vietnam means more than comparing interest rates. Consider long-term costs, repayment flexibility, and legal compliance. Some banks offer tailored packages depending on income type, property type, and buyer nationality.

What to compare across banks

• Interest rate structure: Fixed vs. floating. Check duration of fixed term and how post-period rates are calculated.

• Loan-to-value (LTV): Vietnamese buyers get higher LTV limits. Foreign buyers may need larger down payments.

• Fees and charges: Includes application, legal, appraisal, and early settlement fees—usually 1%–3% total.

• Repayment options: Some banks allow early or partial repayment without penalty after a fixed period.

• Bundled products: Interest discounts may apply when linking your mortgage to insurance, payroll, or savings accounts.

Compare offers from top banks like Vietcombank, ACB, MB Bank, and Shinhan Bank. Use bank calculators or third-party platforms like BankChoice.vn. Real estate developers often partner with banks to provide better loan terms for off-plan units.

Tips for better mortgage deals

Maintain a clean CIC (credit info center) score, reduce unsecured debts, and apply jointly if possible. Providing a larger down payment can lead to interest reductions. Ask for full amortization tables before agreeing to loan terms.

Understanding mortgage types in Vietnam

Understanding mortgage types in Vietnam

In Vietnam, home loans—also referred to as mortgages—are offered primarily by commercial banks, with options for both Vietnamese and foreign borrowers. Loans are typically used for purchasing apartments, landed homes, or building residential properties. Mortgages are regulated by the State Bank of Vietnam (SBV), with caps on lending amounts and loan terms.

Main types of mortgage loans in Vietnam

• Fixed-rate loan: Interest is fixed for 6–36 months, then converts to a floating rate. Suitable for borrowers wanting short-term stability.

• Floating-rate loan: Interest adjusts based on market benchmarks (e.g., SBV refinancing rate or bank base rate). May start lower but can rise significantly.

• Developer-partnered mortgage: Banks collaborate with real estate developers to offer special rates and streamlined approvals.

• Government-subsidised loan: Offered to low-income families or public sector workers under special support programs.

• Refinancing loan: Used to transfer an existing mortgage to a new bank with better terms or add a top-up loan.

Typical loan tenures range from 5 to 25 years. Most banks finance up to 70%–80% of the property value for Vietnamese citizens, and around 50%–60% for foreigners. Foreigners can only buy from approved projects and must meet land-use and remittance regulations.

Who is eligible for a mortgage in Vietnam?

Vietnamese citizens with stable income, clear credit history, and legal property documentation can apply. Foreigners with valid visas and proof of overseas income may qualify for limited financing. Required documents include ID/passport, proof of income, tax returns, bank statements, and signed sales contracts.