Mortgage Availability Helps First-timers Buy Homes

• 31 December 2015
• Local News
• 1028 Views

According to figures from Cambodia’s lenders and leading real estate industry insiders, more and more young and first time buyers people are purchasing homes thanks to the greater availability of financing options such as mortgages.

As bank loans continue to play a growing role in helping Cambodians purchase their own homes, ACLEDA Bank has reported an increase of about a third in the value of its mortgages in 2014.

Thanks to these mortgages, more first-time buyers could afford a home, said Chrek Soknim, chief executive of VTRUST property firm, who added that the process benefited the banking sector as well.

“The growth of the sector will boost property transactions, while mortgages obtained through banks are win-win for both clients and the banks themselves as they can both share the profits,” he told the Phnom Penh Post.

Sear Chailin, chief executive of CL Realty, told the Post that the increasing number of housing loans from ACLEDA Bank was a positive sign for the real estate sector in Cambodia, as it meant more people were able to buy homes.

However, he warned that “people seeking out a mortgage should look at the interest rate before deciding to get the loan, because they can lose money if they don’t carefully study it”.