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Property law in Hanoi, Vietnam, is still developing, with mortgage law being a core part of it. Mortgages in Vietnam are a practical method for individuals and businesses to acquire real estate via secured loans. The laws are governed by the Vietnamese Civil Code and the Law on Real Estate Business. As a foreigner, you can get a mortgage for a property that you are legally allowed to own.
Navigating the intricacies and subtleties of real estate laws, specifically mortgage law, can be challenging for individuals unfamiliar with the legal system. A lawyer's assistance becomes critical in situations such as drafting and reviewing contracts, ensuring compliance with regulations, handling disputes or issues related to mortgage repayment, understanding foreign ownership laws, deregistering a mortgage, and foreclosure proceedings.
The key aspects of Hanoi mortgage laws include the provision for both parties - the mortgagor and mortgagee - to freely agree on the property value and loan amount. The mortgage contract is only valid if created in writing. According to Vietnam's Civil Code, foreign investors are allowed to purchase and own residential properties for a period of 50 years, but this period can be extended. Also, residential properties can only be mortgaged if the ownership has been fully transferred to the person applying for the mortgage.
Under 2014's amended law, foreigners who meet specific conditions can access mortgages in Vietnam.
The maximum tenure for a mortgage loan in Vietnam is usually 20 years, but conditions may vary between different banks and type of loan.
If a borrower fails to meet the repayment terms, the lender may enforce the mortgage and can sell the property to recover the owed amount.
The average mortgage interest rate in Hanoi, Vietnam, varies between banks and loan packages. As of current practice, the rate stands at about 8-10% per annum.
As per Decree 99/2010/ND-CP dated 2010 on residential housing management and use, mortgages issued to foreigners can be denominated in foreign currency.
In addition to seeking a competent real estate lawyer, additional resources include the Ministry of Natural Resources and Environment, and the Ministry of Construction, as well as various real estate and banking associations in Vietnam.
If you require legal assistance for mortgages in Hanoi, start by contacting a local real estate law firm. These professionals can guide you through each stage of the process, ensuring proper compliance with all applicable laws and safeguarding your best interests. Prepare all necessary documents and share them with your lawyer for a smoother process. It's wise to converse and clarify everything regarding your property and mortgage with your lawyer.
