Our survey shows that many banks continue to lower interest rates for home loans immediately after the Lunar New Year holiday.
The interest rate during the promotional period at banks is currently between 5-8% per year. After the promotional period, the interest rates will return to the floating rate, ranging from 8-12% per year.
Specifically, in the Big4 group of banks (Agribank, Vietcombank, VietinBank, and BIDV), the interest rates for home loans range from 5.3-8.5% per year, depending on the term. Among them, BIDV is currently implementing a home loan package with an interest rate for a minimum of 60 months, ranging from 7.5-8.5% per year.
Vietcombank applies a preferential interest rate of 6.0% per year for the first 6 months for short-term loans of less than 12 months; or 6.3% per year for the first 6 months for medium to long-term loans.
Agribank currently applies a fixed interest rate of 7% per year for the first term. In the following years, the interest rate will fluctuate.
VietinBank offers a preferential interest rate for the first 6 months at 8.2% per year, and after the preferential period, the interest rate will float. The maximum loan term is 20 years.
Among the joint-stock commercial banks, the interest rates for home loans have also decreased significantly. For example, ACB bank has reduced the interest rate for home loans to 7.2% per year, applied for the first year of the preferential period. The floating interest rate from the second year is calculated based on the base rate plus a margin of 3.8%.
The interest rate for home loans decreased sharply in March.
TPBank also applies preferential interest rates for home loans, the lowest being 0% per year for the first 3 months, and 9% per year for the following 9 months. In addition, for customers choosing a fixed loan term of 12 months, the interest rate is 7.5% per year, for a fixed term of 24 months, the interest rate is 8.6% per year, and for a fixed term of 36 months, the interest rate is 9.6% per year. The condition for choosing this loan package is that the total loan amount is less than 65% of the total asset value.
For customers borrowing more than 65% of the total asset value, the preferential interest rate for the first 3 months is 1% per year, and for the following 9 months, the interest rate is 9% per year when customers choose a fixed loan term of 3 months. The interest rate is 8.5% per year for the first 12 months, 9.6% per year for the 24-month package, and 10.6% per year for the 36-month package.
After the preferential period, the interest rate will float. Specifically, for customers choosing the 3-month package, the floating interest rate is calculated based on the base rate plus a margin of 3.6%. For the remaining interest rate packages, the margin is 3.3%. Prepayment penalty fees range from 1-3.5% per year for a period of 1-5 years.
Sacombank applies a fixed interest rate of 6.5% per year for 6 months, 7.5% per year for a fixed term of 12 months, and 8.5% per year for a fixed term of 24 months for real estate loans. After the fixed period, the interest rate will float.
MSB offers a short-term loan with an interest rate of 6.2% for 5 months, a short-term loan of 6 months with an interest rate of 6.8%, a medium to long-term fixed-term loan of 12 months with an interest rate of 6.5%, and a medium to long-term fixed-term loan of 24 months with an interest rate of 8%.
BVBank currently has the lowest interest rate for loans, starting at 5% per year, and after the preferential period, the margin is 2% per year.
VPBank also applies a rate of 5.9% per year 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 margin of 3% per year.
The group of foreign banks also adjusts the interest rates for home loans. Specifically, Wooribank offers multiple loan packages with flexible interest rates. Customers can choose a fixed rate of 5.3% for the first 6 months and a fixed rate of 8.3% for the following 54 months. Or a fixed rate of 5.6% for the first year, or 6% fixed for the first 2 years, 6.4% fixed for the first 3 years. The floating interest rate is calculated based on the average deposit interest rate for individuals of state-owned banks plus a margin of 3.5% or more.
Shinhan Vietnam also offers fixed interest rates for home loans for 5 years. Specifically, the interest rates are divided into 2 levels: 5.5% fixed for the first 6 months and 7.5% fixed for the following 54 months. Or borrowers can choose an interest rate of 5.2% per year fixed for 12 months, 5.5% per year fixed for 24 months, and 6.0% fixed for 36 months.
In its newly released 2024 strategy report, Vietnam Securities Company (VFS) expects that when interest rates for home loans decrease to a more attractive level, it will stimulate the return of housing loan demand from the second half of 2024.
The company also notes that it is difficult to observe any significant changes due to issues related to supply sources and buyer confidence in developers, which depend on the effectiveness of legal changes and support policies, which take a long time.
