Mortgaging Land/House Titles (Red/Pink Books) in 2025: Conditions and Procedures – How Difficult Are They?

Loans

21/08/2025

Mortgage loans using land use right certificates (red book) or ownership certificates (pink book), also known as home mortgage loans, offer great advantages such as high credit limits, low interest rates, and decreasing rates over time.

Mortgaging land or house titles (known as "Sổ đỏ/Sổ hồng" in Vietnam) offers excellent advantages like high loan limits, low interest rates, and declining interest over time. This is a popular financing option for long-term plans such as business investments, property purchases, or car acquisitions. Let VPBank guide you through this attractive loan product and related information!

1. What is a Mortgage Loan with a Red/Pink Book (Land/House Title)?

A mortgage loan collateralized by a Red Book (land use rights certificate) or Pink Book (house ownership and land use rights certificate) is a type of bank loan for personal purposes, where your land or house title is used as collateral to secure the loan approval. This form of home equity loan is incredibly common.

Home mortgage loans are an extremely popular form of borrowing.

2. Loan Limits for Mortgaging Land/House Titles

The loan limit for a home mortgage depends on the appraised value of the land or property as stated on the Red/Pink Book and the specific regulations of each bank.

For instance, at VPBank, you can obtain a mortgage loan with support of up to 100% of the asset's appraised value, with a maximum of VND 3 billion. This substantial loan amount can help you achieve multiple plans simultaneously, such as business investment, car purchase, interior decoration, or acquiring technology equipment.

The loan term can extend up to 10 years. Furthermore, your Red/Pink Book can also be used as collateral for other loans, such as study abroad loans or home renovation loans, often with attractive preferential interest rates.

A high loan limit from a home mortgage helps you achieve many of your goals.

3. What are VPBank's Mortgage Loan Interest Rates for Land/House Titles?

Currently, VPBank applies a base interest rate for mortgage loans and collateralized loans ranging from 6.6% to 9.3% for terms from 1 month to 15 years.

Mortgage loan interest rates are calculated based on several factors, including:

Market Interest Rates: These are the rates announced by the State Bank of Vietnam and significantly influence bank lending rates.
Loan Term: Generally, longer loan terms will result in higher interest rates.
Loan Risk Level: Banks assess the loan's risk level by evaluating the collateral's value and the customer's repayment capability.
Individual Financial Standing: If a customer has stable income and a good credit history, their loan interest rate may be lower compared to those with unstable income or a poor credit history.

See also: The quickest and most accurate way to calculate bank loan interest rates.

4. Conditions for Mortgaging Land/House Titles (Red/Pink Books)

To ensure a smooth loan application process, please review the basic conditions for obtaining a mortgage loan with a Red/Pink Book (land/house title) at VPBank:

Eligible Borrowers:

Individuals aged 20-65 years (at the time of loan completion).
Must be Vietnamese citizens with legal residency in an area where a VPBank branch is located.
Must not have any bad debt with any credit institution.

Collateral (Security Asset):

A legally valid Red Book or Pink Book registered in the name of the borrower or guarantor.
The collateral must be free from disputes, not subject to planning restrictions, and not already mortgaged at another credit institution (unless a specific agreement with VPBank is in place).

Income Source:

Ability to demonstrate stable financial capability, such as income from salary, business activities, property rental, or other sources.
Total income must ensure the ability to repay both principal and interest according to the stipulated schedule.

Legal Documents:

Valid Citizen ID card (CCCD) or Passport.
Household registration book or temporary residence confirmation.
Marriage certificate or certificate of marital status (if applicable).

You should thoroughly understand the requirements before applying for a home mortgage loan.

5. Required Documents for Mortgaging Land/House Titles

To apply for a mortgage loan with a Pink/Red Book, customers need to prepare the following complete set of documents:

Loan application form
Identity Card (CMND/Passport)
Household Registration Book/Temporary Residence Registration/KT3
Marriage Certificate/Certificate of Single Status
Documents proving income
Land ownership documents (Red Book/Pink Book)

The land use rights certificate must have legal validity to be used as collateral for the loan.

6. Process and Procedures for Mortgaging Land/House Titles at VPBank

The loan approval process for mortgaging land/house titles has been streamlined due to a more scientific and professional approach. At VPBank, the process is quickly completed in 4 steps:

Step 1: Receive Loan Application

A VPBank Relationship Manager will receive the customer's loan application, verify if all required documents are complete, and guide the customer on any necessary additions.

Step 2: Appraise Collateral Value

The collateral (mortgaged land or property) will be surveyed to determine its actual value. The loan limit will be based on the asset's value, with a typical loan-to-value ratio of 80%. The collateral appraisal process can be conducted by the bank's internal appraisal department or with the assistance of a third party.

Step 3: Complete Mortgage Loan Procedures

After agreeing on all relevant terms regarding loan tenor, interest rates, approved limits, etc., the customer will prepare all necessary mortgage documents to finalize the Pink Book mortgage procedures. This entire process will be witnessed and confirmed by authorized individuals.

Step 4: Register Secured Transaction

To legally use the Red/Pink Book as collateral, the bank needs to register the asset's mortgage. The notarized mortgage contract will be submitted to the competent authority for mortgage registration. The secured transaction registration procedure typically yields results within 3-7 working days from the date of submission.

The process and procedures for mortgage loans using the land use right certificate (red book) at VPBank are always quick and efficient.

Once the mortgage registration results are obtained, the loan will be disbursed as agreed. The Red/Pink Book used for collateral will have an additional printed page indicating that it is currently mortgaged for a loan at the bank.

7. Why Choose VPBank for Your Home Mortgage?

VPBank (Vietnam Prosperity Joint-Stock Commercial Bank) is a leading bank in Vietnam, having been consistently ranked among the Top 5 most reputable commercial banks in Vietnam for 5 consecutive years. This achievement is a testament to the trust of millions of customers nationwide.

Taking out a mortgage loan using a pink book or red book at VPBank comes with many benefits.

To live up to these expectations, VPBank has continuously enhanced service quality and introduced diverse loan packages for all customers, maximally supporting their capital needs.

Flexible Loan Terms: Customers can choose their preferred loan tenor (6 months, 12 months, 24 months, up to 120 months) based on their repayment capacity.
Simple Loan Application, Easy and Fast Procedures: VPBank simplifies complex procedures, ensuring maximum efficiency while maintaining legal compliance, security, and customer rights for collateralized loan packages.
Professional VPBank Specialists: Dedicated advice, always seeking loan solutions tailored to each individual's economic situation, ensuring the highest benefits for every customer.
Diverse Principal and Interest Repayment Methods: Customers can repay loans through various channels: online payments, direct payments at transaction counters, or via collection points such as The Gioi Di Dong, Phuong Tung, etc.

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A mortgage loan with a Red/Pink Book (or home mortgage) can be an effective financial solution to fulfill multiple plans simultaneously. Find more detailed information about this loan package here, or visit your nearest VPBank branch for consultation and answers.

If you have any questions about the Red/Pink Book mortgage product or other related matters, please do not hesitate to contact VPBank via hotline: 1900 5454 15 for dedicated assistance!