Thursday, September 21, 2017 1:05:26 AM - Markets closed
VN-INDEX 805.86 -0.07/-0.01%
HNX-INDEX 105.18 +0.45/+0.43%
UPCOM-INDEX 54.57 +0.13/+0.24%
Banks hopeful for mortgage market growth
Source: VNS - 3/14/2017 9:45:38 AM
 (0 ratings. You must sign in to rate.)
With housing demand remaining strong, banks are optimistic 2017 will be a big year for mortgages.

The HCM City Real Estate Association (HoREA) said last year mortgages worth VNĐ70 trillion (US$3.07 billion) has been taken out from banks in the city.

According to the 2016 financial report by the National Financial Supervision Commission, while credit flowing into the property market rose by only 12 per cent in 2016 compared to 28 per cent the previous year, consumer credit rose by 39 per cent with more than half of the loans used for buying or repairing homes.

This indicates there is massive demand for housing loans.

Traditionally, the mortgage market is busy around Tết (Lunar New Year) as people usually borrow to buy or renovate houses. Lenders compete fiercely for a share of this pie, offering cheap loans.

In January Sài Gòn Thương Tín Commercial Bank (Sacombank) earmarked VNĐ3 trillion for mortgages at 8.5 per cent interest.

Asia Commercial Bank offered home loans at 7.5 per cent, while Việt Nam International Bank offered 7.8 per cent for the first six months.

Đầu tư (Việt Nam Investment Review) newspaper quoted several banks as saying that mortgages are expected to surge due to rising demand from middle-income customers.

Trương Đình Long, Deputy General Director of Orient Commercial Bank, told Đầu Tư that with more than 50,000 couples marrying every year in the city, demand for housing, especially low-priced, would surge this year.

But it is unlikely that lenders will be capable of competing on interest rates.

Circular 06/2016/TT-NHNN, which came into effect last January, reduces the ratio of short-term deposits that can be used for medium- and long-term loans from 60 per cent to 40 per cent. The property sector is set to take a hit from this since mortgages usually have a medium- or long-term tenor.

Besides, the deposit interest rates are inching up, making it harder for lenders to lower lending rates, especially for consumer loans.

Đầu Tư quoted Long as saying that if deposit interest rates keep heading north, lending rates too would rise.

But a senior Sacombank executive said lending rates would not change much this year. -

Newer News
20/04 Reference exchange rate up 8 VND
19/04 State Bank works to maintain stable interest rates
18/04 Handbook helps banks weigh projects
14/04 SBV to stop acquiring weak banks at zero đồng
13/04 Reference exchange rate goes down 1 VND
12/04 VPBank plans to list shares on HOSE in Q3
12/04 Moody’s assigns first-time ratings to OCB
07/04 21 VN banks gather to discuss interest rates
04/04 Reference exchange rate up 7 VND
03/04 Creditors adjust growth forecasts
Older News
10/03 Reference exchange rate goes up 5 VND
07/03 Banks foresee good profit in 2017
07/03 Reference exchange rate stays flat
07/03 Credit grows 1% in January: NFSC
06/03 The heat is on in consumer finance market
27/02 Reference exchange rate stays flat
23/02 Reference exchange rate down 4 VND
20/02 Reference exchange rate revised up 2 VND
16/02 Reference exchange rate declines by 2 VND
16/02 New lending rules come into effect from March
 
Newsletter Signup
Top Stories
VN manufacturing PMI hits 22-month high in March
CPI goes up 4.96 percent year-on-year in first quarter
Slight rise in February CPI
Draft decree on State monopoly in trade submitted to Government
CPI ups 0.46% in January
Market Update
Last updated at 3:01:50 PM
VN-INDEX 805.86 -0.07/-0.01%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.