Who Qualifies for the 3.2% Interest Rate Home Loan in Ho Chi Minh City?

Specifically, the borrowers are officers, civil servants, and public employees of departments, branches, districts, and counties; public administrative agencies in the area receiving salaries from the city budget; and the city’s armed forces, including the People’s Army, the People’s Police, and the self-defense militia. Trade union officials, civil servants, and public employees whose salaries come from trade union finances, as well as officers, civil servants, and employees of the Ho Chi Minh City Tax Department, are also eligible.

According to Mr. Vinh, the decision to include court officials, prosecutors, executioners, customs officers, state treasurers, social insurance officers, market managers, Ho Chi Minh City branch of the State Bank of Vietnam, statisticians, and foreign affairs officers as eligible borrowers is a new development. This expansion of eligible borrowers was made through Decision No. 4899/QD-UBND, dated October 31, 2024, by the Ho Chi Minh City People’s Committee.

In terms of housing conditions, Mr. Vinh shared that at the time of the loan application, the borrower (including the primary applicant and their spouse) should not own any residential property or land use rights. Additionally, neither the applicant nor their spouse should have previously benefited from state housing or land policies. However, if they have been granted permission to purchase social housing, they can still be considered for a loan from the Fund, in line with the Ho Chi Minh City People’s Committee’s guidelines.

Regarding residency requirements, borrowers from the City Housing Development Fund must have permanent residence in Ho Chi Minh City. They should also have a minimum of three consecutive years of employment. This calculation includes the time previously worked in the same group of eligible borrowers. Borrowers must demonstrate financial capacity by providing a minimum down payment of 30% of the property value and proving a stable income to repay the capital and interest. The current maximum loan limit is VND 900 million per application, but it cannot exceed 70% of the property value. The maximum repayment term is 20 years, and the interest rate applied by the Fund is 3.2% per annum, calculated on a reducing balance basis. The borrower’s collateral is the very house/apartment they intend to purchase, and it must have legal documents as stipulated by law.

Compared to the previous year’s housing development loan interest rate of 4.7%, the current rate of 3.2% is a reduction. Mr. Vinh emphasized that the current interest rate is highly advantageous and offers significant support to borrowers.