Authored by the expert who managed and guided the team behind the Vietnam Property Pack
Everything you need to know before buying real estate is included in our Vietnam Property Pack
Vietnam's mortgage market for foreigners remains highly restrictive, with most Vietnamese banks rarely approving loans for foreign nationals unless they have legal residency status and local income sources.
As of September 2025, only select international banks like HSBC, Standard Chartered, and Shinhan Bank, along with a few domestic institutions, offer mortgage products to foreigners, typically requiring substantial down payments of 30-40% and limiting financing to condominium properties only.
If you want to go deeper, you can check our pack of documents related to the real estate market in Vietnam, based on reliable facts and data, not opinions or rumors.
Vietnamese banks require foreigners to have legal residency, work permits, and local income to qualify for mortgages, with down payments typically ranging from 30-40%.
International banks operating in Vietnam offer more flexibility but still maintain strict requirements, with loan tenures capped at 15-20 years and interest rates starting around 8-12% annually.
| Key Requirements | Foreign Borrowers | Vietnamese Citizens |
|---|---|---|
| Minimum Down Payment | 30-40% | 20-30% |
| Loan-to-Value Ratio | 60-70% | 70-80% |
| Maximum Loan Tenure | 15-20 years | 25-30 years |
| Interest Rates | 8-12% floating | 6-9% floating |
| Currency Options | VND only | VND primarily |
| Property Types | Condos only | All property types |
| Co-borrower Required | Often yes | No |
Which banks in Vietnam actually approve mortgages for foreigners today?
As of September 2025, only a handful of banks in Vietnam approve mortgage applications from foreign nationals.
International banks operating in Vietnam show the highest approval rates for foreign borrowers. HSBC Vietnam, Standard Chartered Bank, and Shinhan Bank Vietnam maintain dedicated teams for expat clients and have established procedures for foreign mortgage applications.
Among domestic Vietnamese banks, OCB (Orient Commercial Bank) stands out as one of the few willing to consider foreign applicants, though their requirements remain stringent. Vietcombank and BIDV occasionally approve foreign mortgages but typically only for borrowers married to Vietnamese citizens or those with exceptional circumstances.
Most other Vietnamese banks, including Techcombank, VPBank, and ACB, rarely approve foreign mortgage applications due to regulatory constraints and internal risk policies. These banks prefer to focus on their domestic customer base.
The success rate for foreign mortgage approvals remains below 15% across all banks, with most rejections occurring due to insufficient local income documentation or residency status issues.
What is the minimum down payment percentage that these banks require from foreign borrowers?
Foreign borrowers in Vietnam face significantly higher down payment requirements compared to local buyers.
The standard minimum down payment for foreigners ranges from 30% to 40% of the property's appraised value. International banks like HSBC and Standard Chartered typically require 35% down payment as their baseline, while some domestic banks push this requirement up to 40%.
Married couples where one spouse is Vietnamese may qualify for reduced down payment requirements of 25-30%, provided the Vietnamese spouse co-signs the loan and meets income criteria.
In contrast, Vietnamese citizens can secure mortgages with down payments as low as 20-30%, highlighting the disparity in lending terms. Some promotional programs for locals occasionally offer even lower down payment options.
Banks justify these higher requirements by citing increased default risk and limited recourse options when dealing with foreign borrowers who might leave the country.
Do Vietnamese banks typically lend in VND only, or are USD-denominated mortgages also available?
Vietnamese dong (VND) dominates the mortgage lending market, with USD-denominated loans being extremely rare for residential properties.
Approximately 95% of all mortgage products in Vietnam are denominated in VND, regardless of the borrower's nationality. This policy stems from Vietnamese banking regulations that prioritize local currency stability and reduce foreign exchange risks for financial institutions.
International banks like HSBC and Standard Chartered may discuss USD options for ultra-high-net-worth individuals purchasing luxury properties worth over $2 million, but these arrangements require special approval and come with additional fees and restrictions.
Some banks offer USD-linked mortgage products where payments are calculated in USD but must be paid in VND at current exchange rates, though this arrangement provides little practical benefit and adds currency conversion complexity.
Borrowers should budget for VND-denominated loans and consider currency hedging strategies if their income sources are in foreign currencies.
What interest rates are foreigners realistically getting right now, and are they fixed or floating?
Foreign borrowers face higher interest rates than Vietnamese citizens, with most loans carrying floating rate structures.
| Bank Type | Foreign Borrower Rate | Vietnamese Citizen Rate |
|---|---|---|
| International Banks | 8.5% - 11.5% | 7.0% - 9.5% |
| Major Vietnamese Banks | 9.0% - 12.0% | 6.5% - 9.0% |
| Smaller Vietnamese Banks | 10.0% - 13.0% | 7.5% - 10.0% |
| Co-borrower Arrangements | 8.0% - 10.5% | 6.0% - 8.5% |
| Premium Customer Rates | 7.5% - 9.5% | 5.5% - 7.5% |
Fixed-rate mortgages are virtually non-existent in the Vietnamese market, with over 98% of all mortgage products featuring floating rates tied to the State Bank of Vietnam's base rate or individual bank reference rates.
Rate adjustments typically occur every 3-6 months, and borrowers should expect fluctuations throughout the loan term. Some banks offer initial rate locks for the first 6-12 months, but these eventually convert to floating structures.
How long are the maximum loan tenures that banks are willing to give to foreign buyers?
Vietnamese banks impose stricter loan tenure limits on foreign borrowers compared to local customers.
The maximum loan tenure for foreigners typically ranges from 15 to 20 years, significantly shorter than the 25-30 year terms available to Vietnamese citizens. Most international banks cap foreign mortgages at 15 years, while some domestic banks may extend to 20 years for married couples with Vietnamese spouses.
Age restrictions further limit tenure options, with most banks requiring loan maturity before the borrower reaches 65 years old. A 45-year-old foreign applicant would face a maximum 20-year term regardless of bank policy, while a 55-year-old would be limited to 10 years.
Banks justify shorter tenures by citing higher risk profiles and uncertainty about long-term residency status of foreign borrowers. Some institutions offer tenure extensions if borrowers obtain permanent residency or Vietnamese citizenship during the loan term.
It's something we develop in our Vietnam property pack.
What proof of income or employment documents do foreigners need to qualify?
Vietnamese banks require extensive documentation to verify foreign borrowers' financial stability and legal status.
Essential documents include a valid work permit, temporary residence card, and employment contract from a Vietnamese company or recognized international organization. Banks require at least 12 months of local salary slips and bank statements showing consistent VND deposits.
Self-employed foreigners or those with overseas income face additional hurdles. They must provide business registration documents, tax returns filed in Vietnam, and audited financial statements translated into Vietnamese. Some banks require notarized income verification from foreign employers or clients.
Additional required documents include a valid passport with appropriate visa stamps, proof of local address registration, and sometimes marriage certificates if claiming spouse-related benefits. All foreign documents must be notarized and apostilled in their country of origin, then translated and notarized again in Vietnam.
The documentation process typically takes 2-4 weeks to complete, and banks may request additional paperwork during their review process.
Don't lose money on your property in Vietnam
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Are there restrictions on property types foreigners can finance, such as condos versus landed houses?
Vietnamese mortgage lending for foreigners is strictly limited to condominium apartments due to legal ownership restrictions.
Foreigners cannot legally own landed houses or villas in Vietnam, making mortgage financing for these property types impossible. Banks will only consider financing condominium units in buildings where foreign ownership quotas haven't been exceeded, typically capped at 30% of total units per building.
Eligible properties must have proper ownership certificates (so hong or so do) and be located in approved areas for foreign ownership. Properties in border areas, national security zones, or culturally sensitive locations remain off-limits for foreign financing.
Some banks impose additional restrictions on property age, requiring buildings to be less than 10 years old or located in specific districts of major cities like Ho Chi Minh City and Hanoi.
Condotel units, serviced apartments, and mixed-use properties often face financing challenges due to unclear ownership structures and rental restrictions that banks consider risky for collateral purposes.
Do banks in Vietnam require foreigners to have a local co-borrower or guarantor?
Most Vietnamese banks strongly prefer or require foreign borrowers to have local co-borrowers or guarantors to mitigate lending risks.
International banks like HSBC and Standard Chartered may approve standalone foreign applications for borrowers with exceptional financial profiles, but success rates increase dramatically when Vietnamese spouses or business partners co-sign loans. Approximately 75% of approved foreign mortgages involve local co-borrowers.
Vietnamese co-borrowers must meet standard income requirements and provide their own documentation, effectively doubling the paperwork burden but significantly improving approval odds. The co-borrower assumes joint liability for the entire loan amount.
Some banks accept corporate guarantees from well-established Vietnamese companies employing the foreign borrower, though this arrangement is less common and typically requires the employer to have substantial assets or banking relationships.
Guarantors must be Vietnamese citizens or permanent residents with stable income and good credit histories. Banks may require guarantors to pledge additional collateral or maintain minimum account balances throughout the loan term.
What are the usual loan-to-value ratios banks approve for foreigners compared to locals?
Vietnamese banks offer less favorable loan-to-value ratios to foreign borrowers, reflecting perceived higher risk levels.
Foreign borrowers typically qualify for LTV ratios of 60-70%, meaning they must provide 30-40% down payments. In contrast, Vietnamese citizens can secure LTV ratios of 70-80%, requiring only 20-30% down payments for comparable properties.
Premium international banking clients with substantial assets or long-term Vietnamese residency may negotiate slightly better terms, occasionally reaching 75% LTV ratios, but this remains exceptional rather than standard.
Properties in prime locations like District 1 in Ho Chi Minh City or Ba Dinh in Hanoi may qualify for higher LTV ratios due to their stable value appreciation and strong resale potential.
Banks justify lower LTV ratios by citing difficulties in property recovery if foreign borrowers default and leave Vietnam, making conservative lending approaches necessary to protect their interests.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Vietnam versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Are there specific banks or branches in Vietnam with a track record of lending to expats?
Several banks and specific branches in Vietnam have established reputations for successfully processing foreign mortgage applications.
1. **HSBC Vietnam** - Their Premier Banking centers in Ho Chi Minh City and Hanoi specialize in expat services and maintain dedicated relationship managers for foreign clients. They process approximately 60% of successful foreign mortgage applications.2. **Standard Chartered Vietnam** - Their Priority Banking branches in District 1 (HCMC) and Hoan Kiem (Hanoi) have streamlined processes for expatriate customers and maintain English-speaking mortgage specialists.3. **Shinhan Bank Vietnam** - With strong Korean expatriate connections, their branches in Tan Binh District and Korean business areas show higher approval rates for Asian expats.4. **OCB (Orient Commercial Bank)** - Their international banking division in major cities has approved mortgages for European and American expatriates, though with stricter requirements.5. **ANZ Vietnam** - While they've reduced mortgage operations, their remaining branches still consider high-net-worth foreign clients for property financing.Success rates vary significantly by branch, with central business district locations typically showing more experience and flexibility in handling foreign applications compared to suburban branches.
What are the main fees, insurance costs, or hidden charges that foreigners should expect?
Foreign mortgage borrowers in Vietnam face numerous fees and charges beyond the standard interest rates and principal amounts.
| Fee Type | Typical Cost | When Charged |
|---|---|---|
| Application/Processing Fee | 0.5% - 2% of loan amount | At application |
| Property Valuation | $200 - $500 | During assessment |
| Legal Documentation | $300 - $800 | Before approval |
| Mortgage Insurance | 0.3% - 0.8% annually | Throughout loan term |
| Early Repayment Penalty | 2% - 5% of outstanding balance | If paid early |
| Annual Account Maintenance | $50 - $150 | Annually |
| Notarization & Translation | $200 - $600 | Before approval |
Insurance requirements add substantial costs, with most banks requiring comprehensive property insurance, mortgage protection insurance, and sometimes personal accident insurance for the borrower.
It's something we develop in our Vietnam property pack.
How long does the mortgage approval process usually take from application to disbursement?
The mortgage approval timeline for foreign borrowers in Vietnam typically extends longer than domestic applications due to additional verification requirements.
Initial document review and completeness check takes 3-5 business days, followed by detailed financial assessment and property valuation requiring another 10-15 business days. Credit committee review and approval decisions add another 5-7 business days to the process.
Once approved, legal documentation preparation and final verification procedures require an additional 7-10 business days before funds can be disbursed. Total timeline from complete application submission to disbursement typically ranges from 4-6 weeks for straightforward cases.
Complex cases involving overseas income verification, multiple co-borrowers, or unusual property types can extend the process to 8-10 weeks. Incomplete documentation or the need for additional paperwork can add several weeks to the timeline.
Banks recommend starting the mortgage application process at least 60 days before the intended property purchase completion date to allow sufficient time for approval and disbursement. Rush processing services are rarely available for foreign applicants.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Vietnam's mortgage market for foreigners remains challenging but not impossible, with success heavily dependent on residency status, local income, and bank relationships.
Foreign investors should carefully evaluate the total cost of borrowing, including higher down payments, elevated interest rates, and substantial fees, against alternative financing options.
It's something we develop in our Vietnam property pack.
Sources
- Da Nang Villa Realty - Foreign Bank Loans Guide
- America Mortgages - Vietnam Mortgage Options
- Rent Apartment Vietnam - Foreign Property Buying Guide
- VR Bank Vietnam - Currency Loan Information
- Homebase Vietnam - Foreign Property Ownership
- Wise - Buying Property in Vietnam Guide
- Long Phan PMT - Vietnamese Real Estate Mortgages
- ADK Lawyers - Foreign Loans in Vietnam