Bank loans for a ready apartment: valuation, loan-to-value and disbursement

Legal basis: Circular 21/2017/TT-NHNN dated 29 December 2017 on loan disbursement methods (effective 2 April 2018) · Land Law No. 31/2024/QH15, Article 133 (change registration within 30 days) · 2025 Law on Personal Income Tax and Decree 253/2026/NĐ-CP (2% tax) · Decree 10/2022/NĐ-CP, amended by Decree 175/2025/NĐ-CP (0.5% registration fee) · Updated 20 October 2026.

When you borrow to buy a ready unit, the amount the bank lends is based on the bank's valuation, not the price you agree with the seller. The collateral is usually the unit you are buying, and the loan is paid to the seller rather than through you. Understanding these three points before paying a deposit keeps you from running short of money halfway through.

How banks value an apartment

The apartment is valued by the bank's valuation department, the bank's asset management company or an independent valuer, depending on the bank and loan package. Factors usually considered:

• Legal status: has a pink book, no disputes, not affected by planning or frozen. A unit with extensions or alterations not yet reflected in its papers may need revaluing or be valued lower.
• Location, project, floor, area, condition.
• Transaction prices of similar units in the same area.

In early 2026, the press reported that banks tended to value collateral 10–20% below actual prices. You have to cover this gap from your own funds.

Loan-to-value is based on the valuation

Mortgage loan limits are usually around 70–80% of the collateral's value; some banks have home loan products for units with a certificate of up to 80% of the collateral's value. Banks also look at income and the debt-to-income ratio (DTI): the higher your total monthly repayments relative to income, the more the limit is restricted.

Reference example — assumptions: purchase price 4 billion dong, bank valuation 15% lower.

	70% loan-to-value	80% loan-to-value
Bank valuation	3.4 billion dong	3.4 billion dong
Maximum loan	2.38 billion dong	2.72 billion dong
Own funds paid to the seller	1.62 billion dong	1.28 billion dong
0.5% registration fee (buyer)	about 20 million dong	about 20 million dong

Own funds in the example are 32–41% of the purchase price, excluding notary fees, valuation fees and insurance (if any). The 2% personal income tax is usually paid by the seller — state it clearly in the deposit contract.

Interest rates and fees to ask about

Ask the bank: how long the promotional rate is fixed, what base rate plus margin applies afterwards, the early repayment fee (the press in early 2026 reported about 0.5–2% in the first years), and whether insurance is mandatory. For the latest rate levels, see the news item Lãi suất vay mua nhà vượt 10%/năm: tính dòng tiền sau ưu đãi (Home loan rates above 10% a year: planning cash flow after the promotion; in Vietnamese). To see your monthly payment after the promotion, use the home-buying cash-flow calculator.

Disbursement: the money goes straight to the seller

Under Circular 21/2017/TT-NHNN, banks mainly disburse by transfer into the payee's payment account — here, the seller's. The usual process for buying a ready unit with a loan is:

1. Pay a deposit to the seller.
2. Submit the loan application; the bank assesses your income and values the unit.
3. The bank issues a credit approval letter — check the amount, validity period and disbursement conditions carefully.
4. The seller, the buyer and the bank sign a three-party agreement on the amount, timing and receiving account.
5. Notarise the sale contract.
6. Submit the title transfer file (within 30 days of notarisation) and pay the taxes and fees.
7. Sign the mortgage contract on the unit you are buying and register the mortgage.
8. The bank disburses into the seller's account under the three-party agreement and holds the original pink book until you have repaid the loan.

The order of steps 6–8 differs between banks: some disburse once the title transfer file has been submitted, others wait until the pink book is in your name and the mortgage is registered. Ask clearly before signing the deposit, as the seller will need to know when they will be paid in full.

A unit mortgaged to another bank

If the seller's unit is mortgaged, the old loan must be settled and the bank must release the mortgage before the title is transferred and mortgaged to your bank — or you can borrow from the bank already holding the pink book to keep it simple. Agree clearly which money is used for settlement and which account it goes into.

What to write into the deposit contract

• Conditions for refunding the deposit if the bank refuses the loan or lends less than expected.
• Payment deadlines that match the disbursement timeline, with a few days' margin.
• The seller's commitment to provide the papers the bank requires and to let the valuer view the unit.

This article is for reference only and does not replace legal or financial advice for your specific case.

1. Make preliminary enquiries with 2–3 banks: loan-to-value on the valuation, promotional and post-promotion rates, early repayment fees, disbursement timing.
2. Work out your own funds based on a valuation below the purchase price (assume 10–20%), plus the 0.5% registration fee and the notary fee.
3. Sign a deposit contract with a refund clause if you cannot borrow enough, and payment deadlines matching the disbursement date.
4. Submit the loan application and let the bank value the unit.
5. Receive the credit approval letter; check the amount, validity and disbursement conditions.
6. Sign the three-party agreement with the seller and the bank.
7. Notarise the sale contract, submit the title transfer file within 30 days, pay taxes and fees.
8. Sign the mortgage contract and register the mortgage on the unit you are buying.
9. The bank disburses into the seller's account; you repay on schedule and get the pink book back when the loan is settled.

Sources in Vietnamese; titles kept in the original, with a short English translation in brackets.

• State Bank of Vietnam — Thông tư 21/2017/TT-NHNN quy định phương thức giải ngân vốn cho vay (Circular 21/2017/TT-NHNN on loan disbursement methods) — full text on LuatVietnam, issued 29 December 2017, effective 2 April 2018, read 20 October 2026.
• Bao Ha Tinh — Lãi suất vay mua nhà năm 2026: Nhiều ngân hàng áp dụng mức trên 13%/năm (Home loan rates in 2026: many banks above 13% a year — valuations 10–20% below actual prices, early repayment fees), 5 February 2026.
• Techcombank — Vay thế chấp tối đa được bao nhiêu? (How much can you borrow against a mortgage? — limits of 70–80% of collateral value, DTI), read 20 October 2026.
• VIB — Mua nhà thế chấp ngân hàng (Buying a home mortgaged to a bank — valuation by an AMC or independent valuer), 27 September 2024.
• VietnamFinance — Sang tên trước, nhận tiền sau: Người bán nhà "cầm đằng lưỡi" (Transfer first, get paid later: sellers holding the blade end — credit approval letters, three-party agreements), 20 July 2026.
• Tuoi Tre (Phap Luat TP.HCM) — Có được bán căn hộ chung cư đang thế chấp ngân hàng? (Can an apartment mortgaged to a bank be sold?), 5 June 2025.
• Can Tho City legal education portal — Trường hợp nào phải đăng ký biến động đất đai trong thời hạn 30 ngày? (Which changes must be registered within 30 days? — Article 133 of the 2024 Land Law), read 20 October 2026.
• Government Portal — Thuế thu nhập cá nhân đối với thu nhập từ chuyển nhượng bất động sản (Personal income tax on income from real estate transfers), 4 July 2026.
• Thư viện Nhà đất — Mức thu lệ phí trước bạ nhà đất năm 2026 là bao nhiêu? (What is the registration fee for houses and land in 2026?), read 20 October 2026.