Construction boom causes competition in home loan interest rates

• 17 October 2019
• Local News
• 2913 Views

Recent figures from Ministry of Land Management Urban Planning and Construction indicate that the number of house construction projects has increased from 3,052 worth US$6.4 billion in 2017 to 43,136 worth more than $43,3 billion in 2018. As a result, the competitiveness of home loan interest rates has begun to attract more customers while most individual banks now offer mortgage policies.

For most people who are looking to purchase a house, financial institutions offer home loan interest rates of 4%-8% for those who can afford the current housing prices. Canadia Bank’s home loan interest rate starts at 6% according to a Chen Sokchen, a staff member at Canadia Bank.

Bred Bank’s website informs customers that its home loan interest rate is 6.6% including the conditional policies which are available for either individual or joint borrowers. Noticeably, with a similar home loan interest rate, Chip Mong Bank also offers an attractive rate of only 3.99% for the first year, going up to 7.7% for the second year onwards, though this offer is only applicable for Chip Mong Land products.

In contrast to other banks, Canadia Bank offers home loans to many housing projects because of its diverse corporations which consist of Rung Reung City, Kien Svay Plaza City, Elysee, Elite Town, The Olympia City, Casa Meridian, Diamond Twin Tower, The Mekong Royal, Orkide Villa 3 (The Botanic City) and Borey New Hope. Canadia Bank also recently launched its new home loan product providing up to 70% collateral and a fast-track approval process for customers who use Khmer riel.

Statistics from the Credit Bureau Cambodia (CBC) show that Cambodia’s mortgage loan as a percentage of all loans, such as personal finance, credit cards etc, reached 47.62%. by March 2019.

Feature photo by Dreamstime.com

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