What is a mortgage loan? Information about interest rates, forms, and the MOST REPUTABLE lending banks

1. What is a mortgage loan? 

A mortgage loan is a form of loan in which customers will mortgage valuable assets such as real estate, cars, as collateral. Loans are granted by banks or financial institutions based on the appraised value of the collateral, ensuring to minimize risks for the lender and create favorable conditions for customers to access capital. Bank mortgage loans are favored by some people's characteristics:

• Diverse collateral assets: Customers can use many types of valuable assets as collateral. Including houses, land, cars, or documents with great legal value, such as red books and pink books. Even though the asset is used as collateral, the customer still retains ownership and use of the asset throughout the loan term, creating favorable conditions for both using the asset and accessing capital.

Flexible loan term: Regular loan term ranges from 1 year to a maximum of 35 years. Customers can flexibly choose short-term, medium-term or long-term terms depending on their financial ability and capital needs.

• Competitive interest rates: Mortgages typically have significantly lower interest rates than other forms of credit. The average mortgage interest rate ranges from 10% to 12%/year, while unsecured loan interest rates are often higher, at 18% to 20%/year.
• Large loan limit: The mortgage loan limit can range from 70% to a maximum of 100% of the value of the collateral, depending on the loan plan and the appraised value of the property. For example, if the mortgaged property is valued at 1 billion VND, the customer can be approved for a maximum loan of 1 billion VND. Large loan limit Suitable for large-scale financial purposes such as real estate purchase, business investment, or long-term project development.

2. 3 types of interest rates when borrowing mortgage capital 

Currently, banks often offer three main types of interest rates: fixed interest rates, floating interest rates, and mixed interest rates.

2.1. Fixed interest rate 

A fixed interest rate is an interest rate that does not change throughout the loan term. This policy usually applies to short-term loans and provides stability to the borrower. Fixed interest rates are usually calculated according to the following formula:

For example, A loan of 500 million VND with a fixed interest rate of 10%/year for 2 years will be calculated as follows:

Interest amount per month = 500,000,000 x 10%/12 = 4.166.667 VND/month

With constant interest rates, borrowers can easily plan their finances and avoid risks from interest rate fluctuations.

2.2. Floating interest rate

A floating interest rate is an interest rate that is adjusted periodically based on market fluctuations. This policy can apply to many different types of loans, depending on the regulations of each bank. The floating interest rate is calculated according to the formula:

For example: Loan of 500 million VND with base interest rate of 6%/year, interest rate margin of 3%. Applying the formula, we get:

Floating interest rate = 6% +3% = 9%/year = 0,75%/month

Interest amount per month = 500,000,000 x 0.75% = 3.750.000 VND/month

2.3. Mixed interest rate

Mixed interest rates combine fixed interest rates and floating interest rates, often applied to medium or long-term loans. Borrowers will enjoy a fixed interest rate for an initial period, then a floating interest rate will apply. 

In the first stage, the interest amount is calculated at a fixed interest rate:

After the end of the fixed interest rate period, switch to a floating interest rate:

For example: Loan of 500 million VND with a fixed interest rate of 8%/year for the first 12 months, then a floating interest rate of 10%/year applies (base interest rate 6% + margin 4%). Calculate the monthly interest amount as follows:

During the first 12 months, the monthly interest amount will be calculated at a fixed interest rate:

Interest amount per month = 500,000,000 x 8%/12 = 3.333.333 VND/month

After 12 months, when switching to a floating interest rate (10%/year), the monthly interest amount will be calculated as follows: 

Floating interest rate = 6% + 4%/12 = 0,8333%/month

Interest amount per month = 500,000,000 x 0.8333% = 4.166.667 VND/month

3. Popular forms of mortgage loans today

Mortgage loans are one of the popular loan methods and are chosen by many people because of their flexibility and ability to borrow large amounts of money. Depending on their needs and financial capabilities, borrowers can choose mortgage loan types that suit their conditions.

4. Experience in mortgage loans with the most competitive interest rates

When borrowing a mortgage, choosing a loan that suits your financial needs and ability to pay is very important. Below are some experiences to help you secure a mortgage with competitive interest rates, while optimizing costs and ensuring financial sustainability throughout the loan process.

• Determine loan conditions: Before deciding to borrow a mortgage, customers need to carefully evaluate the bank's loan conditions and compare them with their financial capacity. Loan conditions usually include age, stable income, valid collateral, and good credit history. Fully meeting these conditions will help you increase your chances of being approved for a loan.
• Clarifying usage needs: Customers need to determine the purpose of the loan to avoid situations where the loan is not suitable for their needs. Consider factors such as loan amount, loan term, and ability to make periodic payments to plan the appropriate use of loan capital.
• Pay attention to additional costs: Besides interest rates, costs incurred during the loan process also need to be carefully considered by customers. These fees may include collateral valuation fees, notary fees, and early repayment fees,...

• Choose a reputable bank with preferential interest rates: Mortgage interest rates often vary between banks. Customers should prioritize banks that have promotional programs, preferential interest rates, or customer support policies in the early stages of the loan to help them save part of the interest costs throughout the loan period, while creating financial stability throughout the loan process.

5. Reputable, fast mortgage loans with attractive interest rates at SeABank

5.1. Preferential mortgage loan packages at SeABank 

According to updated information, SeABank offers competitive mortgage interest rates, depending on the purpose, limit, loan term, collateral, and special incentive programs of the bank. After the promotion period, interest rates may change

5.2. Quick mortgage loan procedures at SeABank

To be approved for a mortgage loan at SeABank quickly and effectively, customers need to fully prepare the following required documents:

• Loan application form: The loan application form provided by SeABank, customers to fill in all information completely and accurately.
• Personal legal records: Includes personal documents such as identity card or citizen identification card, household registration book, certificate of marital status (marriage registration or single certificate).
• Documents proving the purpose of capital use: Documents related to loan purpose such as car sales contract, VAT invoice, house purchase contract or similar documents.

• Documents proving financial capacity: Provide documents demonstrating a stable source of income to ensure loan repayment ability, including payroll, bank account statements, or documents proving income from business.
• Collateral records: Documents proving ownership of mortgaged assets, such as red books, car registration papers, or other valuable assets.
• Other additional documents: Other documents according to the specific requirements of the bank, depending on each loan case.

Full and accurate preparation of the above documents will help the approval process go faster, saving time for customers. 

5.3. Instructions on how to quickly apply for a mortgage loan at SeABank

The mortgage loan registration process at SeABank is designed to be simple and clear so that customers can access it quickly. Below are the step-by-step details:

• Step 1: People who need a mortgage loan from SeABank register with the bank by: Going directly to the nearest SeABank branch or transaction office. Or you can contact the hotline: 1900 555 587 for advice.
• Step 2: Staff will advise in detail on mortgage loan packages suitable to customers' financial needs and repayment ability. At the same time, the bank will guide customers to prepare necessary documents, ensuring completeness and accuracy, helping the document processing process take place quickly.
• Step 3: When the application is received, the bank will verify important information. This includes checking the customer's personal information, assessing income level to ensure payment ability, and clearly determining the purpose of loan use., and check the value of collateral. 
• Step 4: SeABank conducts appraisal of documents and collateral assets. In this step, SeABank's appraisal department will appraise the customer's documents and collateral before approving the loan limit, loan term and interest rate. Afterward will notify the results to customers.

• Step 5: Once the loan terms are agreed upon, the customer will sign a credit contract with SeABank. Soon, the bank will perform loan disbursement. The disbursed amount will be transferred to customers by the commitment, ensuring transparency and speed.

Explore solutions get an easy mortgage at SeABank today to realize your financial goals!

SeABank has provided you with detailed and comprehensive information about mortgage loan products, hoping customers can better understand how they work, the benefits, as well as conditions suitable to personal needs.

Mortgage loan products at SeABank not only offer competitive interest rates but are also flexibly designed to meet a variety of purposes such as buying a house, investing in business or improving quality of life. To learn more about SeABank's programs and products and services, you can contact the nearest transaction point, call Hotline 1900 555 587, or visit the website www.SeABank.com.vn for detailed advice