Cash tap opened for property

A representative from Ninh Bac Finance Investment Corporation, developer of hi-end apartment complex FLC Landmark Tower in Hanoi’s Tu Liem district, said from this month homebuyers could borrow 70 per cent of an apartment’s value at Military Bank with 15-16 per cent interest rates for 10-20 years.

FLC Landmark Tower started handing over apartments to customers this month at VND23 million ($1,100) per square metre.

Indochina Plaza Hanoi (IPH) mixed-use development is also getting in on the act by handing over apartments to customers. Several banks like Vietcombank willingly finance homebuyers with lending up to 60-70 per cent of the apartment value from seven to 15 years.

Starting from April 11, BIDV offered loans for home purchases with interest rates ranging from 14.5 to 16 per cent which were 1.5 to 2.5 per cent lower than those before that date. BIDV is teaming up with the developer of Richland Southern serviced apartment project in Hanoi’s Cau Giay district to offer prospective customers credit lines up to 70 per cent of the property value.

In late March 2012, developer CapitaLand-Hoang Thanh’s  Mulberry Lane apartment project in Hanoi’s Ha Dong district inked a cooperative deal with Standard Chartered in issuance of debit card Platinum Card with attractive incentives to the project’s prospective buyers.

Other banks such as VIB and OceanBank are rolling out lending packages for home purchases for completed and nearly completed property projects.

For instance, VIB is launching a ‘lending for home purchase’ package with credit lines up to 70-90 per cent of the property value in 180 months maximally.

At the Mulberry Lane project, VIB funds 65 per cent of capital contribution/home purchase contract values with the collateral being the apartment itself and 90 per cent of contract value with the collateral being other assets.

OceanBank is coming up with the package ‘lending for home purchases in new urban areas’ with loans up to 80 per cent of the home value in a maximum 120 months.

Similarly, HSBC just aired its plan to ease lending rates to personal loans with collateral earmarked to car or home purchases. At this point of time, HSBC’s most competitive long-term loan interest rate is pegged at 17 per cent, per year.