Collateral appraisal: how the bank values the property and how much it lends

Example figures are illustrative assumptions. The lending ratios come from a VIB guide (27/09/2024) and may have changed; ask the bank for the current level. Updated 24/10/2026.

When you take a mortgage loan on a home, the bank does not lend based on the price you pay but on its own appraised value. Understanding the appraisal lets you work out in advance how much you can borrow and how much own capital to prepare.

1. What the bank appraises for

The appraisal tells the bank the value of the collateral and how easily it can be resold if the loan goes bad. For a mortgaged home, the bank checks the legal status (certificate, planning, disputes, whether it is mortgaged elsewhere), the actual condition and the market price. The VIB article describes a process of submitting documents, verification, valuing the asset to set the loan amount, and then approval.

2. Commonly used valuation approaches

The rules on real estate valuation use three approaches: market, cost and income (Industry and Trade Magazine, on Circular 42/2024/TT-BTC). For an apartment, banks usually rely on the transaction prices of similar units and their own price data; a detailed calculation guide is in Real estate valuation.

3. Lending ratio against the appraised value

According to the VIB article (27/09/2024), state-owned commercial banks usually lend up to about 70% of the collateral value; VIB cites up to 80%, and the article adds 85% in another passage, so the figures are not consistent. The law sets no single ratio; the loan amount is agreed between the bank and the customer based on risk assessment. The ratio also depends on the type of asset, legal status, income and credit history.

4. Example: an apartment bought for 3 billion VND

Step	Figure
Purchase / transfer price	3.00 billion
Bank's appraised value (assumed lower than the purchase price)	2.80 billion
Maximum lending ratio (assumed)	70%
Maximum loan	1.96 billion
Minimum own capital for the purchase price	3.00 − 1.96 = 1.04 billion (about 35% of the price)
Not including costs on top of the price	taxes, fees, furnishing

If the appraisal is only 2.6 billion, the maximum loan is 1.82 billion and own capital rises to about 1.18 billion. A small difference in the appraised value changes the capital needed by a few hundred million VND. In addition, the bank also looks at income and repayment ability; the maximum loan by collateral may not be fully approved if income is not enough. See Managing your finances before buying a home.

5. What lowers the appraised value

1. Incomplete legal status: no certificate yet, alley subject to planning, a dispute.
2. Little transaction data around the area, so the bank is cautious.
3. Your purchase price is above real transaction levels.
4. The home is in poor condition, lacks access, or lies in an area where that bank restricts lending.
5. The unit is mortgaged at another bank; see Buying an apartment mortgaged at a bank.

6. Documents to prepare

• Legal documents for the property (pink book, or the sale contract and handover record if any).
• The deposit contract or sale contract with the agreed price.
• ID, marital status documents and proof of income.
• Allow the appraiser to view the home; take photos of the condition if needed.

7. Tips for working with the bank

Ask the bank early how much it will appraise before paying a deposit; some banks can give a reference price from their system. If the appraised value is low, you can renegotiate the price with the seller, increase your own capital, or try another bank. See also Bank loans to buy a ready apartment.

8. Appraisal when buying from the developer and buying a ready unit

For an apartment bought from the developer, the bank usually works with a project it already cooperates with and may lend by a ratio on the contract price; conditions, ratios and rates are announced by each bank per project. For a ready unit that already has a pink book, the bank appraises each unit separately, so the appraised value moves with transactions around the area. Ask the bank and the developer or broker about both cases, then build an own-capital table for each option.

Point to remember: the appraised value is not your market price but the price the bank accepts for lending. Treat it as the bank's safety threshold, and do not borrow right up to the maximum if your income is only just enough.

• VIB — Thế chấp sổ đỏ vay được bao nhiêu tiền (lending ratio against collateral value, influencing factors; published 27/09/2024), accessed 24/10/2026.
• Industry and Trade Magazine (Tạp chí Công Thương) — Các cách tiếp cận và phương pháp thẩm định giá bất động sản từ ngày 5/8/2024 (three approaches: market, cost, income), accessed 24/10/2026.