Purchasing a 2-bedroom home in District 7 to accommodate his parents seemed like a dream within reach for Tuan. However, as he took the first steps towards this goal, he quickly realized that reality was far from his expectations.
Life’s Twist: One Step Away from Achieving His Dream
With a capital of VND 1.5 billion and additional support from his parents, Tuan set his sights on a 2-bedroom apartment in District 7 priced at VND 4.5 billion. Confident in his strong financial profile and excellent credit score, he consulted online resources and bank offers, believing that the process would be straightforward. However, after his first phone call with a bank consultant, Tuan was abruptly awakened to the complexities of the home-buying journey.
It became apparent that before stepping into his new home, Tuan, like many aspiring homeowners, would have to navigate a maze of bank processing fees, in addition to state-mandated taxes and charges such as registration fees. Typically, bank processing fees include four basic types: appraisal fee, contract notarization fee, mortgage fee, and legal fee. These fees, which are usually calculated based on the total loan amount, can vary depending on the bank’s policies and often come as a surprise, especially for first-time borrowers.
“Despite my meticulous financial planning and contingency funds set aside for unexpected expenses, I was shocked at the amount of money I needed to pay before even accessing the bank’s loan,” shared Tuan. “There were prepayment penalties if I wanted to repay the loan early, conversion fees for adjusting loan terms, and loan insurance fees to protect the bank, among other procedural costs. I had naively assumed that these fees would be waived or specially discounted, but that was just wishful thinking.”
Due to his initial miscalculations, Tuan found himself in a predicament, as his carefully crafted financial plan was now in disarray, requiring a complete overhaul due to the unexpected obstacle of floating interest rates. “I had solely focused on the promotional interest rates, only to realize later that they only lasted for six months,” he explained. “The floating interest rate, which varied significantly between banks and could increase rapidly within a few months, was the determining factor in my financial strategy. I felt discouraged and confused, unsure of how to proceed with my homeownership dream.”
Just when Tuan thought he might have to put his dream on hold, he stumbled upon a potential solution while browsing through online groups sharing home-buying experiences.
KBank’s Home Loan Package: A Lifeline Amid a Storm of Processing Fees
“It’s true that hard work pays off!” exclaimed Tuan excitedly. “When I came across a comment mentioning KBank’s home loan package and its processing fee promotions, I immediately recognized it as the answer to my financial predicament.”
Upon further investigation, Tuan discovered that the loan package was offered by KasikornBank (KBank) – Ho Chi Minh City Branch. This package had already helped hundreds of young people like him achieve their homeownership dreams, providing him with much-needed reassurance. What particularly caught his attention during his research was the opportunity to receive a refund of five types of processing fees, totaling up to VND 20 million, if he successfully applied for the loan in September. “This refund helped me get back on track financially and boosted my confidence to continue pursuing my lifelong dream. It might seem insignificant to some, but it meant a lot to me,” Tuan added.
Additionally, when comparing interest rates across different banks, Tuan found KBank’s home loan package to be highly competitive, offering a promotional interest rate of just 6.25% fixed for 36 months. Moreover, the floating interest rate, which had been a source of concern, was also very reasonable at KBank, calculated using the formula: 12-month fixed deposit interest rate of BIG 4 (ranging from 4.6% to 4.7%) + 5% margin. “By using KBank’s interest rate formula, I was able to optimize my costs beyond my initial estimates. It wasn’t just about reducing the burden but also about improving my quality of life,” Tuan explained.
Furthermore, KBank offered joint loans, which suited Tuan’s situation perfectly, as he had financial support from his family. This approach not only increased his creditworthiness but also allowed him to increase his loan limit, bringing him closer to his dream home.
For more details on KBank’s home loan promotions, click here
To register for KBank’s home loan, click here
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