After Tet, which bank offers the cheapest loans for buying real estate?

Our survey shows that as of February 2024, the interest rates for home loans at banks have significantly decreased compared to mid-2023. Some banks have reduced the average interest rate for home loans to 5-6% per year during the promotional period. After the promotional period, the floating interest rate for home loans ranges from 9-11% per year.

The preferential interest rate for home loans at the Big 4 banks ranges from 6-7% per year. Specifically, BIDV applies the lowest preferential interest rate for real estate loans at 6% per year, followed by Vietinbank with 6.4% per year. 

Agribank applies an interest rate of 7% per year for the first 2 years. The interest rate after the promotional period is floating. However, Agribank has a loan term of 5 years.

In the group of private commercial joint-stock banks, the interest rate for home loans ranges from 6-11% per year.

The lowest current preferential interest rate is 0% per year, applied at TPBank. Accordingly, this bank applies an interest rate of 0% per year for the first 3 months, 9% per year for the next 9 months for customers borrowing less than 65% of the total asset value. The preferential interest rate for customers borrowing for 12 months is 7.5% per year, for 24 months is 8.6% per year, and for 36 months is 9.6% per year. For customers borrowing more than 65% of the total asset value, the preferential interest rate is 8.5% per year for the fixed 12-month loan package, 9.6% per year for the 24-month/year package, and 10.6% per year for the 36-month package. In the case of a 3-month loan package, the preferential interest rate for the first 3 months is 1% per year and 9% per year for the next 9 months. 

Techcombank currently applies an interest rate of only 5% per year for the first 3 months of the loan. 6% per year for the first 6 months of the promotional period or 6.8% per year for a 12-month period. The prepayment penalty for the first 3 years is 2%, from the 4th to the 5th year is 1%, and from the 6th year onwards, the bank waives the prepayment fee. 

BVBank also has the lowest bank loan interest rate at only 5% per year, and the range after the promotional period is 2% per year. 

Meanwhile, the preferential interest rate that VPBank applies is 5.9% for the first 6 months of the year. After the promotional period, the floating interest rate is calculated by adding a 3% margin to the reference rate each year.

The interest rate for home loans at ACB Bank is 7.5% per year for the first 2 years. After the promotional period, the interest rate for loans is calculated by adding the base interest rate plus a 3.5% margin. Customers can prepay up to VND 200 million per month without a penalty fee.

In foreign banks, the preferential interest rate for home loans has also decreased to below 6% per year. For example, Wooribank applies an interest rate of 5.7% per year for the first 6 months. For the next 54 months, the interest rate is 8.7% per year. For customers choosing the fixed 1-year package, the preferential interest rate is 6% per year, and for the 2-year package, the preferential interest rate is 6.4% per year. For the fixed 3-year package, the preferential interest rate is only 6.8% per year. After the promotional period, the floating interest rate is 3.5% per year.

For Shinhan Bank, the fixed interest rate for the first 6 months is 5.8% per year and 7.5% per year for the next 54 months. The interest rate for the fixed 1-year package is 6.1% per year, for the 2-year package is 6.5% per year, and for the 3-year package is 6.9% per year. The penalty fee ranges from 1-2% per year. The interest rate for home loans is still reduced by 0.1-0.3% per year for customers using the bank’s credit cards or having loans of more than VND 3 billion.

According to the 2024 Outlook Report by Vietcombank Securities, the unit states that: The interest rate for home loans is starting to decrease according to the deposit interest rate. This may stimulate homebuyers to resume real estate purchase plans for long-term residence and investment purposes. At the same time, the deep loss product supply from homebuyers using high leverage in the vibrant market phase has been significantly absorbed.

According to a survey conducted by the PropertyGuru Vietnam market research unit at the end of 2023 with approximately 2,000 participants. The survey results show that 44% of respondents consider a home loan interest rate below 8% to be reasonable for them to manage their finances. Approximately 33% of people are willing to borrow if the interest rate ranges from 8-10%. The remaining 14% agree to borrow with an interest rate from 10-13%.