Best Bank for Home Loans: Before and After Lunar New Year

Numerous banks offer attractive mortgage interest rates, ranging from 6-7% per annum for the first year.

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(Illustrative photo)

According to our survey at the time of Lunar New Year (26th of December, 5th of February 2024), interest rates for home loans continued to cool down. Most banks apply two interest rates: (1) preferential interest rates applied for the first 3-12 months; (2) After the preferential period, floating interest rates are calculated based on the base rate or the average savings interest rate for the Big 4 bank group plus a spread ranging from 2-4% per year.

Specifically, the popular preferential interest rates are 6-8% per year, and some banks even implement attractive credit packages when offering home loans for the first year at just over 5% per year.

For example, BVBank has recently adjusted its bank loan interest rate to just 5% per year. After the preferential period, the floating interest rate is calculated based on the base interest rate plus a spread of 2%. Meanwhile, VPBank applies a rate of 5.9% for the first 6 months of the year. After the preferential period, the floating interest rate is calculated based on the reference interest rate plus a spread of 3% per year.

The interest rates for loans in the Big 4 bank group, including Agribank, Vietcombank, VietinBank, and BIDV, are currently at 6-7% per year during the preferential period.

Specifically, Agribank applies a fixed interest rate of 7% per year for the period of 12-24 months.

Vietcombank applies an interest rate of 6.7% per year for the first 18 months. For a fixed package of 2 years, the interest rate is 6.8% per year, and for 3 years, it is 7.5% per year, 9.5% for 5 years, 10.5% for 7 years, or 11% for 10 years.

BIDV applies an interest rate of 6-7% per year for the term of 6-36 months and a minimum loan period of 36-60 months. Meanwhile, VietinBank applies a loan package of 6.4% per year for the first year.

As for other private banks, the interest rates for home loans have also significantly decreased, with the preferential interest rate for the first year averaging from 6-8% per year. For example, SeABank offers an interest rate of 6.5% per year, fixed for 12 months. After the preferential period, the floating interest rate has a spread of just 3.35% per year.

HDBank and MSB apply a preferential loan rate of 6.8% per year. Meanwhile, ACB offers a loan rate of 7-8% per year for the first years, or a fixed rate of 9% per year for the first 2 years. At OCB, the preferential interest rate is 7-8% per year. After the preferential period, loan interest rates offered by these banks range from 9-11% per year.

Shinhan Vietnam Bank also offers an interest rate of only 5.9% for the first 6 months and 8% for the following 54 months for home loans.