Bank loans – “Financial leverage” for homebuyers

In the context of the COVID-19 epidemic, the phrase work from home has become very familiar. Therefore, the need for a suitable living space to be able to work from home has also increased significantly.

Experts also pointed out that, even though they want to own a spacious and comfortable apartment, with the development of the epidemic over the past 2 years, people’s psychology buy house There have been some changes in Vietnam. It is more inclined to be prepared and find a more effective financial solution than to spend all the existing capital to buy a house. One of them is using bank loan packages with preferential interest rates and long loan terms.

90% of home buyers look to “financial leverage” solutions

Many people have the capital available, but still want to choose the installment loan option, instead of spending their entire wallet on buying a house. (Illustration image – Photo: Investment Newspaper)

With the current reality, finding home loan packages from banks is a quite appropriate and effective solution at this time. As noted in many real estate projects that are open for sale, especially apartment products, 90% of homebuyers want to use this “financial leverage” solution. Even many people have capital available, but they still want to choose the option of installment loans, instead of spending their entire wallet on buying a house. Increasingly, the market has more and more loan packages up to 70-80% of the value of real estate, with quite attractive interest rates, the loan period lasts up to 35 years.

Mr. Khoi’s family needs to buy a second house to live in District 10 (Ho Chi Minh City). However, instead of having to pay a large sum of money, the family chose to pay in installments through the bank, with a term of 25 years.

“The bank will help me find out the price of that house. Second, when I get a loan, that’s financial leverage,” said Mr. Pham Nguyen Khoi, Binh Thanh district, Ho Chi Minh City. .

According to some real estate investors, except for cases where customers cannot meet loan requirements or very few people have large residual funds, more than 90% of home buyers choose a bank loan. row.

“Even if customers have money available, customers still want to be able to use financial leverage, because customers can maximize their profits. Own capital when entering will be very low, interest rates are favorable. incentives during the home loan process as well as the repayment process,” said Ms. Tran Thi Hong Ngan, sales director of MIK Group.

“It will be a lever for the development of urban housing projects as well as support, because the current income of Vietnamese people is difficult for anyone to buy immediately. Current price. Houses are trending up, people using credit to pay in installments is an inevitable trend,” said Mr. Nguyen Chi Thanh, Vice Chairman of the Vietnam Real Estate Brokers Association.

It is estimated that the housing segment for nuclear families, who are young couples, has steadily increased by about 20% per year in cities with the world’s leading urbanization rates such as Ho Chi Minh City, Hanoi. Interior.

Banks deploy many solutions to attract borrowers to buy houses

It is known that some banks also consider home loans as their core business. Some banks even share up to 40% of the total credit balance for individual customers for home loans.

Loans up to 35 years, loans on asset value up to 85% with competitive interest rates, these are the policies of the loan packages to buy residential houses and project houses being implemented by VPBank. In addition, the loan application process is also simplified by making the most of technology.

“We apply OCA technologies, that is, compare the information entered by staff or partners on the app with the customer’s document capture information on the app automatically, combined with scoring sets. So, within 5 minutes after entering all the information on the app, the customer can receive the approval result of the bank”, Ms. Phan My Hanh, Director of Product Center for mortgage loans, Personal Banking Division, VPBank, said.

A representative of BIDV said that interest rate policies and online procedures have contributed to the home loan segment’s growth rate of over 20% per year. Outstanding loans also account for nearly 40% of lending activities to individual customers.

From the beginning of April 2022, customers will deposit accumulated savings, enjoy savings and borrow up to 5 times the accumulated savings deposit with the loan interest rate reduced by 0.5 compared to the interest rate. ordinary loans, helping customers accumulate money gradually to buy houses,” said Ms. Bui Thi Hoa, Director of BIDV’s Retail Banking Development Department.

Finding home loan packages from banks is a suitable and effective solution at this time. (Illustration image – Photo: Investment Newspaper)

According to experts, not only competing with interest rates, many banks are also gradually changing their approach to customers, starting from analyzing needs, trends, and financial plans to make recommendations. consulting and planning in a more comprehensive way for customers. This change contributes to ensuring sustainable growth, expanding the quality customer base and not being too dependent on income from interest rate differentials.

According to statistics of some banks, in recent years, the retail lending sector has had a good growth rate, most of which are at double digits. In particular, the home loan segment is considered as one of the important parts, a product focused on retail lending.

As noted, home loans have the best scale and growth in big cities like Hanoi and Ho Chi Minh City. People between the ages of 22 and 40 are the leading customer group in the trend of “borrowing first and paying later” to get a dream home.

So what should be noted when choosing, using and paying for home loans from banks? Will people who want to buy a house to live in will have difficulty accessing loans in the near future? What should be noted when taking out a home loan, especially in the context of the pandemic that has affected the income of the majority of people?

These questions will be answered in the program Financial Flow (April 9) with the participation of Ms. Van Nguyen, Director of Hanoi Market, with more than 13 years of working experience in the field of real estate consulting in the Northern market, managing the real estate consulting segment commercial and industrial zones of JLL Vietnam Company.

* Invite readers to watch programs broadcast by Vietnam Television on TV Online and VTVGo!