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Bank commitment letter: what it is, why it matters, how to obtain it
What is a bank commitment letter for a Vietnam property purchase?
Bank commitment letter at a glance
Updated July 2026- Vietnamese name
- Thư cam kết cho vay
- Loan commitment letter — common Vietnamese banking usage, not a defined legal term
- Issued by
- Your home-country or international bank, or a Vietnam-licensed bank's foreign-buyer lending programme
- Local Vietnamese banks generally do not lend to non-resident foreigners
- When you need it
- After loan underwriting is approved — usually before signing the Sale & Purchase Agreement or committing to a staged-payment schedule
- See our buying-process guide
- Typical cost
- An arrangement/processing fee set by the lender; certified translation for local use ≈ €150–400 (≈ VND 4–10.8M)
- No government fee applies to the letter itself
- Validity
- Typically 30–90 days from issue
- Exact term set by the lender, not by Vietnamese law
- Language
- English (home-country banks) or bilingual English/Vietnamese; certified Vietnamese translation usually required for local use
- Governing law
- The purchase itself is governed by Housing Law 2023, Land Law 2024 and Decree 95/2024; the letter is a private lending contract under the lender's own terms
- Housing Law 2023 & Land Law 2024
- Required for
- Proof of financing capacity to the developer or seller, and to plan the transfer of funds into Vietnam
Specimen: a bank commitment letter
How to obtain a bank commitment letter
⏱ 3–6 weeks, ahead of signing the Sale & Purchase Agreement
- 1
Confirm which financing route applies to you
⏱ 1 week◈ No direct cost
Start by establishing whether a Vietnamese lender can serve you at all: local bank loans are generally not accessible to non-resident foreigners, so most buyers rely on a home-country or international bank, or on the small number of Vietnam-licensed banks running a dedicated foreign-buyer programme for Temporary Residence Card (TRC) holders. Our guide to mortgages for foreigners and guide to financing your purchase cover both routes in detail.
DocumentsPassport · Current visa or TRC, if approaching a Vietnam-licensed bank
⚠Assuming any Vietnamese bank branch can issue this letter to a non-resident foreigner — local lending to non-residents is generally not available.
→ mortgage advisory - 2
Submit your financing application and supporting file
⏱ 1–2 weeks◈ Application and file-review fees vary by bank
Lenders underwrite the letter against your income, savings and the specific property, so assemble your file in parallel with your reservation: proof of income, recent bank statements, a tax notice and the reservation or booking agreement for the unit. This step usually runs alongside the reservation stage of the wider buying process.
DocumentsPayslips or proof of income · Bank statements · Tax notice · Reservation or booking agreement
⚠Submitting an incomplete file — missing income or source-of-funds documents is the most common cause of delay.
- 3
Underwriting and property valuation
⏱ 1–3 weeks◈ Valuation fee, set by the lender
The lender reviews your file and, in most cases, commissions an independent valuation of the specific unit named in the reservation agreement before an approval committee signs off on the amount, rate and term it is willing to offer.
⚠Treating a verbal indication from a loan officer as an approval — only the written commitment letter is binding on the terms it states.
- 4
Receive and review the commitment letter
⏱ Immediate on approval◈ Arrangement fee, set by the lender
Once approved, the bank issues a formal letter stating the approved loan amount, interest rate, tenor, any conditions attached and an expiry date. Check every figure against what was discussed, and check the expiry date against your realistic Sale & Purchase Agreement signing date before you rely on it.
DocumentsSigned commitment letter · Loan offer or term sheet, if issued separately
⚠Letting the letter's validity window lapse before signing — commitment letters typically run 30–90 days and are not automatically renewed.
- 5
Translate and present it to the developer or seller
⏱ 3–5 days◈ ≈ €150–400 · ≈ VND 4–10.8M for certified translation
If the letter is issued in English only and needs to be shown to a Vietnamese developer or the land office, obtain a certified Vietnamese translation before presenting it. The letter then serves as evidence of financing capacity when you sign the Sale & Purchase Agreement or negotiate a staged-payment schedule tied to loan disbursements.
DocumentsCertified Vietnamese translation
→ law firms
What it costs to obtain and use a bank commitment letter
These are lender-set or service fees, not government fees — Vietnam's statutory acquisition costs (registration 0.5%, seller's PIT 2%, maintenance fund 2%) apply later, at signing and registration; see our <a href="/guides/taxes-fees">guide to taxes and fees</a>.
| — | Min | Max | Base |
|---|---|---|---|
| Loan application / arrangement feeNo government fee applies to the commitment letter itself — request the fee schedule in writing | Set by lender | Set by lender | Bank policy, often a flat fee or a small % of the loan amountBuyer, at application |
| Property valuation fee | Set by lender | Set by lender | Bank-appointed valuerBuyer, during underwriting |
| Certified Vietnamese translation≈ VND 4–10.8 million; only needed if the letter is issued in English only | €150 | €400 | one-offBuyer, if presenting the letter to a Vietnamese developer or the land office |
| Independent financing / mortgage advisory (optional)Independent broker or advisor, distinct from the lender's own fees | 0.5% | 1% | % of loan amount (optional)Buyer, strongly recommended for a first purchase in Vietnam |
| Total | Arrangement & valuation fees: bank-set | Plus translation and optional advisory, from ≈€150 |
Illustrative example: €200,000 financing on a €400,000 apartment (≈ VND 5.4bn loan on a VND 10.8bn purchase)
- Arrangement fee (illustrative, ~0.5% — your lender's fee may differ)
- ≈ €1,000 · ≈ VND 27M
- Certified translation
- ≈ €250 · ≈ VND 6.8M
- Independent advisory (illustrative, 0.75%)
- ≈ €1,500 · ≈ VND 40.5M
- Σ
- ≈ €2,750 · ≈ VND 74M, excluding any variance in your lender's own fee schedule
Frequently asked questions
What is a commitment letter from a bank?
It is the lender's formal written confirmation that it has approved a specific loan amount, interest rate and repayment term for your purchase, once underwriting is complete. It is not the loan itself — funds are released later, against the Sale & Purchase Agreement's payment schedule.
How long does it take to get a bank commitment letter?
Budget three to six weeks from a complete application to a signed letter: roughly one to two weeks to assemble the income and reservation file, one to three weeks for underwriting and valuation, then the letter is issued on approval. Incomplete files are the main cause of delay.
What risks are involved with commitment letters?
The main risks are timing and scope. The letter typically expires 30 to 90 days after issue, so signing the SPA too late can leave you without confirmed financing; and it commits the bank to the stated terms only, not to fund a different property, price or loan amount if any of these change.
Can foreigners get a bank commitment letter for a property in Hanoi?
Yes, but rarely from a Vietnamese bank branch: local lending to non-resident foreigners is generally not accessible. Most foreign buyers obtain the letter from their home-country or international bank, or from the small number of Vietnam-licensed banks that lend to Temporary Residence Card holders under a dedicated foreign-buyer programme.
Does a commitment letter guarantee the loan will be disbursed?
No. It confirms approval on the terms and conditions stated, which usually include a valid reservation or SPA, an up-to-date valuation and no material change in your financial situation. If any condition is not met before disbursement, the bank can withdraw or amend the offer.
Is a bank commitment letter the same as a bank guarantee?
No. A commitment letter is your lender's approval of your own financing; a bank guarantee (bảo lãnh) is a separate instrument the developer arranges with a bank to protect off-plan buyers' deposits. The two protect different parties and are not interchangeable — see our guide to the bank guarantee for the distinction.
What if my bank commitment letter expires before I sign the SPA?
You will usually need to request a renewal or a fresh letter, which can mean resubmitting updated income and bank statements and, if enough time has passed, a new property valuation. Check the letter's expiry date against your realistic SPA-signing timeline before you rely on it.
Sources
- Housing Law 2023 (Law No. 27/2023/QH15) — governs the sale and purchase of the residential property a bank commitment letter is used to finance.
- Land Law 2024 (Law No. 31/2024/QH15) — governs the land-use rights underlying the property being financed.
- Decree 95/2024/ND-CP — implementing decree detailing Housing Law 2023 procedures (no verified official English-language URL at time of writing).
Coordinate your financing before you commit
Our Hanoi desk helps foreign buyers align a bank commitment letter with the developer's payment schedule, the required Vietnamese translation and the funds-transfer paperwork. Tell us about your purchase and we will send an independent second opinion within 24 hours — no obligation, no outbound sales.