Logo of Phnom Penh Post newspaper Phnom Penh Post - Mortgages on the rise thanks to first home buyers

Mortgages on the rise thanks to first home buyers

Mortgages on the rise thanks to first home buyers

As more young and middle-income Cambodians enter the housing market, an increasing number are taking out mortgages in order to purchase their first homes.

At Acleda bank, 22 per cent more mortgages were taken out in the first three quarters of 2014 compared to the same period in 2013, according to a company announcement from October.

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.”

Asia Real Estate Company general manager Po Eavkong said mortgages helped boost the economy as well, because home purchases created jobs for people in the property and construction sectors. However, he added that “borrowers have to have a clear goal, and the loan management of the banking system must be thorough to prevent risk and potential financial crises in the future.”

At Acleda Bank, mortgages run up to 10 years and have an average interest rate of about 12 per cent, while customers have to pay 30 per cent of the property’s total value before obtaining a loan, said So Sophonnary, Acleda’s executive vice president and chief operations officer.

“Even if they rent the home for a long time, they remain tenants, but they can become homeowners if they use a housing loan combined with a stable income to pay it back,” she said.


  • Angkor lifetime pass, special Siem Reap travel offers planned

    The Ministry of Tourism plans to introduce a convenient, single lifetime pass for foreign travellers to visit Angkor Archaeological Park and potentially other areas. The move is designed to stimulate tourism to the culturally rich province of Siem Reap as the start of the “Visit

  • Bosba: The first Khmer woman composer from UK’s Cambridge

    Bosba Panh is just 25 years old, but she’s already accomplished some impressive milestones for herself and the Kingdom. On July 24, she graduated with a Master’s degree from the University of Cambridge as the first Khmer woman composer and Khmer music graduate ever at

  • ‘Golden’ Angkor Wat likely due to natural phenomenon: ANA

    Pictures and video clips of the Angkor Wat temple, its spires seemingly coated in gold, have been shared tens of thousands of times on social media, prompting a sense of wonder among those who have seen them. Hong Sam Ath, who took the pictures and

  • Pailin longan winery tries to break through to the big time

    Longan aren’t quite as glamorous as some fruits. They don’t have the star-power of mangos or generate the excitement of a pricey seasonal niche fruit like the pungent durian. Unlike bananas or oranges, which are known and loved everywhere, longan remains a decidedly

  • Debt restructuring over, time to tackle rising NPL ratio

    The Cambodian banking system has just completed a 26-month debt restructuring exercise where scores of loan accounts were revised, classified and provisioned as the rate of non-performing loans inched up, sparking a slight credit risk unease Implemented in April 2020, the Covid-19 debt restructuring measures came

  • Koh Slaket studio resort brings culture with style

    Davitra (Cambodia) Co Ltd’s multi-million-dollar 13ha Koh Slaket studio-cum-resort just east of the capital was inaugurated in the first phase on August 6, providing national and international tourists with a new travel option and job opportunities for locals. The man-made cultural and scenic lakefront getaway