30,000 billion VND credit package: Answering many questions

Individuals who can prove their income is guaranteed according to regulations will be eligible for a home loan.

Income 5 - 6 million VND/month can buy a house

To ensure the positive effects of the credit package, ensuring that many low-income people can buy houses, according to the Ministry of Construction, investors must have many packages as well as many types of products so that middle-income and low-income people in urban areas at different levels can all buy houses.

Online dialogue on the 30,000 billion credit package organized by the Government Electronic Information Portal.

According to the calculation of the Ministry of Construction, currently, low income is defined in a wide range from 2-3 million VND/month to 9 million VND/month. Thus, a family with 2 spouses has a maximum income at the low income level of 18 million VND, but the minimum income of many families can only be up to 5 million VND/month.

Deputy Minister of Construction Nguyen Tran Nam said that a person with an income lower than 7.5 million VND/month can buy a house. For those with low income but able to borrow from the bank, investors must have a range of products from small to large. For example, the standard for low-income housing according to regulations is 30 - 70m2. With the current 30m2 level, with full infrastructure, with a new design with full functionality, it is very suitable for young couples, or even 2 couples and 1 small child, it will be a product that attracts customers and is suitable for many borrowers.

“If housing here is calculated at a minimum of 30m2, for example, Viglacera has just started construction of housing in Dang Xa area, selling at 8.5 million VND/m2. Thus, with 30m2, the price of the entire apartment is 250 million VND. According to regulations, we have to deposit, which means we have to take care of about 50 million VND (20%), borrow 80% which is 200 million VND, pay in 10 years, pay 20 million VND in principal each year, pay 1.8 million VND each month, interest of 6% calculated on the first large principal, pay 12 million VND in interest each year. These are the first months, in the following months the principal decreases, the interest will decrease even more. In the first month, the interest is 1 million VND per month plus 1.8 million VND to pay the principal. Thus, each month we pay 2.8 million VND. With the income of families of about 5-6 million VND, spending 30-35% of the income along with the support of the family will can pay. As commercial banks announced, it is possible to borrow for 15 years, 200 million VND in 15 years, the monthly payment will be reduced even more. This is for households with income of 5-6 million VND, which is low, if you try to save, you can own a house", Deputy Minister Nam analyzed.
According to Mr. Tran Xuan Hoang, Deputy General Director of BIDV, a loan of 500 million VND to buy a house while a household has an income of 4-5 million VND/month is completely unfeasible. Because that income must also be used for family living. With that income, how much is left to pay off the debt? At least they have to spend 3-4 million VND/month for living, so there is only 1-2 million VND left to pay off the debt. Meanwhile, the State Bank only limits it to 10 years for individual borrowers.

However, for lower income households, with the current situation of land and material prices, it is impossible to demand that they can build apartments costing 80-90 million VND. According to Deputy Minister Nguyen Tran Nam, for this group, we have a policy to develop and support rental housing.

“We calculate so that households renting apartments of about 40-45m2 only spend about 2 million VND/month. These policies are partly reflected in the content of the Decree on management and development of social housing submitted to the Government, which is currently seeking comments from Government members. I really hope that it will be issued in July, accordingly, the Decree has a separate chapter on policies for developing and supporting rental housing,” said Deputy Minister Nam.

Banks do not require collateral

Many opinions say that according to Circular 11 of the State Bank of Vietnam regulating housing loans, it clearly states: "Banks consider and regulate secured or unsecured loans according to the provisions of law", which makes it difficult for people to disburse home purchase support packages.

Regarding this issue, Mr. Nguyen Viet Manh, Director of the Credit Department - State Bank of Vietnam, clearly explained that regarding collateral for home loans, Circular 11 gives credit institutions the right to decide whether to mortgage or not, but Circular 11 itself also stipulates that banks are allowed to accept the purchased house as collateral. Currently, all 5 commercial banks implementing the support package have this regulation, so this issue does not cause difficulties for people.

“For civil servants buying a house, since they have already paid 20% of the initial capital, the bank does not require any other collateral. However, this subject must prove a guaranteed income,” Mr. Manh stated.

Faced with concerns that commercial banks implementing social housing loans will create bad debt in the future, Mr. Manh said that in order to implement this support loan package, credit conditions must be proven to be guaranteed for commercial banks. Lending regulations must be clearly and strictly assessed between three parties: Investors, banks and home buyers to avoid bad debt in the future and at the same time create favorable conditions for the process of asset auction of banks if any unexpected risks arise.

According to Deputy Minister of Construction Nguyen Tran Nam, social housing purchased by low-income people is also mortgaged property for commercial banks. Therefore, buyers are not allowed to trade within 5 years. However, during this time, owners are allowed to trade with investors or other entities eligible for home loans./.

According to (vov.vn) - LT