his represents are marked difference on previous bank policies of headline-grabbing short-term zero percent rates which were largely marketing exercises and promises more sustainable support for the real estate market’s recovery while keeping speculators at bay.
Sang wanted to buy a 2 billion dong or 90 thousand USD apartment, but only had sufficient funds for 75% of the price. Sang was interested to hear that banks would offer an annual interest rate of 3.99% during over an 18 month period.
Since the beginning of this year, credit into real estate market has increased to 11%. Compared to the market floor in early 2012, real estate credit has increased by around 70%.
"I find interest rates have decreased compared to previous years. More sub-5 % interest rate loans are now available. This trend has helped the sustainable recovery of the housing market", Dang Tuyet Dung, Deputy General Director of Maritime Bank, said.
Such preferential loans from banks are resulted from partnership between banks and investors. This benefits all real estate stakeholders.
According to the latest statistics from real market consultancy, 70% of property buyers are actually after a home. This is why banks are promoting cheaper rate loans, instead of worrying whether this credit will end up subsidising speculators.
