Dinh Dung and Thanh Thuong
The proposal has been sent to SBV and the Ministry of Construction, said Nguyen Hoang Minh, deputy director of the central bank’s HCMC branch.
As per the current regulation, only those without houses can access the preferential loan, and a housing status confirmation must be done before lenders appraise collateral for loans.
Multiple homebuyers have failed to get a housing status confirmation and thus they have been unable to borrow loans from the VND30-trillion package.
To benefit from the low-cost home credit package, homebuyers have to submit home purchase contracts and confirmations that they have not owned a house.
It is easy for State employees to meet this requirement as they simply need confirmations from the heads of the agencies where they are working. Meanwhile, those working in non-State sectors must seek confirmations from the authorities of the wards where they are residing, and many of them have failed to overcome this obstacle.
Nguyen Huu Nghia, deputy director of the Saigon West branch of Bank for Investment and Development of Vietnam (BIDV), said a lot of people had contacted the branch to ask about the VND30-trillion home loan package, but most of them had difficulty getting housing status confirmations from authorities.
BIDV Saigon West is offering a preferential credit package for the Khang Gia-Tan Huong project in Tan Phu District. Few homebuyers have taken out loans from this package.
In HCMC, so far only 18 loan applications have received the nod, with seven of them approved by BIDV and eleven by Vietcombank. Meanwhile other banks entrusted to provide such loans, namely VietinBank, Agribank and MHB, have not given out loans to any borrower, said Minh.
As for property developers, Hung Phu and Hoang Quan are the only two companies that have applied for low-interest loans, around VND1 trillion. BIDV is still considering their applications.
Le Hoang Chau, chairman of the HCMC Real Estate Association, said the preferential home loan package was aimed at stimulating housing demand and thus settling inventory and a part of bad debt in the property market. In addition, it offers a chance for low-income people to own a home.
However, loan disbursement will remain sluggish without a determination of lenders and solutions to break down the procedure barriers so that homebuyers can have easier access to the credit package.
Apart from Khang Gia-Tan Huong, BIDV Saigon West is working with the owners of two other projects over preferential loans, said Nghia.
As State-run banks are still cautious about disbursing the VND30-trillion credit package, a number of property developers are launching budget housing projects with low-interest loans provided by joint stock banks outside the stimulus package.
For example, Nam Long Investment Corporation said its low-cost condos at the Ehome 4 Saigon North project in Binh Duong’s Thuan An District would go on sale at an average price of VND450 million per unit.
Although this project is eligible for the VND30-trillion package, Nam Long still joins hands with VPBank to provide its customers with another choice when they need financial support, said Nguyen Vinh Tran, deputy general director of Nam Long.
VPBank pledges to offer customers of the Ehome 4 Saigon North project a fixed lending rate of 6-8% in the first two years. The first 322 Ehome 4 apartments will go on sale next month.