How to Get a Property Loan in Vietnam for Foreigners with Homebase
The real estate market in Vietnam continues to thrive in 2021 and beyond after COVID-19. It is no wonder that foreign investors are turning their attention to the blooming market. As they settle in, a major problem remains: How can foreigners own property in Vietnam when the loan criteria are unfavorable for them?
Foreign buyers can still apply for bank loans or they can seek assistance from groundbreaking alternatives. One of the real estate market’s pioneers is Homebase, a proptech company that provides a more flexible and seamless process to own homes in Vietnam. They are backed by multi-billion dollar funds from Vietnam (VinaCapital – A 3-billion dollar capital venture and one of the biggest in the country) and around the world (Antler and Y Combinator). Their business model is similar to DivvyHomes and ZeroDown, real estate corporations that are highly successful in the US. Homebase has also secured a 30-million dollar fund to make homeownership possible across the Southeast Asian market.
Among the options available, Homebase stands out with its ability to serve customers in a quick and efficient manner and support a more diverse customer base compared to traditional banks.
The problems of property ownership in Vietnam
Technically, foreigners can own houses in Vietnam but the loan terms are much stricter than locals. To be eligible for a mortgage, you need to meet these requirements:
- Must be Vietnamese, Viet Kieu, or a foreigner married to a Vietnamese spouse.
- Must be younger than 65 years old at the end of the loan term.
- Must have a stable minimum income of 5 million VND per month.
- Shall have stable employment.
Not to mention, land ownership is not permitted for foreigners.
How to apply for mortgages in Vietnam?
To start owning property in Vietnam, you can either:Apply for traditional bank mortgages (with stricter terms than for local buyers) or simply buy the property in cash Seek help from financing companies overseas Find alternatives to traditional banking options
It’s not always the case to find financial support from international companies due to their lack of market understanding. With the local real estate market’s insights, it’s more optimal to choose an alternative that provides thorough customer support like Homebase.
How does Homebase help with foreign property ownership?
Homebase breaks down the ownership process to reduce the hassle often involved in Vietnamese home buying:Clients choose a property or Homebase recommends an agent to search. Homebase will buy the property in cash if it meets inspection criteria. Clients can put a minimum of 20% deposit at the beginning. Every month, clients pay a fixed amount until the end of their contract. Clients have the option to either buy back or walk away from the property.
Here is the infographic to help you visualize these steps:
Why Homebase is a great alternative to traditional banking options
Homebase resolves the pain often associated with property ownership in Vietnam by offering a more flexible path to customers, including those who struggle to meet bank loans’ criteria. By joining their co-investment plan, you can already save up to 50% in terms of payment every month.
Below is a comparison between Homebase’ advantages and traditional bank options:
Though new to the market, Homebase proves to be a promising alternative to traditional bank loans.
Foreign owners who are looking into the market can choose Homebase to facilitate their home buying. Whether you’re a foreigner who finds it difficult to apply for a bank mortgage or an investor who doesn’t meet traditional loan requirements, Homebase can help construct an ownership plan that works for you.
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