According to a survey by the Forecasting and Statistics Department (SBV), in the first half of 2024, credit institutions (CIs) met the overall borrowing needs of customers at a higher rate than in the same period last year. To facilitate business and people’s access to credit, in the first half of the year, CIs tended to keep their credit policies unchanged or loosen them. In the last six months, there is a tendency to loosen in some fields, including home loans.
Recently, many banks have been trying to disburse loans with attractive interest rates. In addition to competitive rates, some banks also offer programs such as grace periods for principal repayment for a certain period, reduced early repayment penalties, etc. Especially, the home loan procedures have been simplified to attract borrowers.
Banks are making efforts to disburse loans with attractive interest rates
A market survey shows that housing loan interest rates are at their lowest in the past decade. In the first year, the average interest rate fluctuated between 5-6%/year. From the second year, the floating interest rate is calculated based on the base rate plus the interest rate margin. Specifically, for the group of commercial banks, some banks offer interest rates below 5%/year applied for the first 3-6 months. The group of state-owned banks also launched low-interest housing loan packages, fluctuating around 6%/year, fixed for the first 1-2 years.
Ms. Nguyen Thi Thao, Director of Dai An Branch, Sea Bank, said that home loan borrowers should choose the longest loan term, and the bank is currently applying a maximum term of 35 years to reduce repayment pressure and offer interest rate incentives such as 5.5% in the first 12 months. In addition, customers should use the principal grace package of up to 18 months, after which the interest rate will fluctuate around 10%, according to Ms. Thao.
According to FiinRatings, credit growth for the real estate business, including investment in real estate enterprise bonds by commercial banks, is expected to recover as legal obstacles are gradually removed. New laws are also expected to create more favorable conditions. FiinRatings expects bank credit for real estate business to grow by 16% – 18% in 2024.
Mr. Nguyen Quang Huy, Director of Finance and Banking, Nguyen Trai University, said that with the supportive policies and solutions to difficulties in the real estate sector by the Government and ministries and branches, many real estate projects have been solved. “People have paid more attention to real estate, especially affordable real estate in the range of VND2-5 billion. According to statistics, 60% of people are interested in this segment. However, with the average income of Vietnamese people, not everyone has that amount of money, so bank loans are very necessary,” said Mr. Huy.
Lower interest rates are expected to accelerate the real estate market. However, the trading situation in the market has not improved much, and most investors are still in a state of observation, and there are not many real demand buyers. According to batdongsan.com.vn, transactions of private houses, townhouses, and land in the second quarter of 2024 did not maintain the positive momentum as at the beginning of 2024. According to a survey by this unit, the successful transaction of land was only 29%, and the transaction of private houses in the second quarter was only 18%.
Notably, in this quarter, the market is still exploring, and buyers prioritize certainty factors such as real needs, clear legal procedures, good financial support policies, stable rental yields, and optimized costs. At this stage, only apartments attract a lot of attention and record the best liquidity among real estate types.
Lower interest rates on new loans have only partially impacted the real estate market, and most transactions will come from products that meet real needs.
Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, said that preferential interest rates for a short time have not made home buyers interested in borrowing from banks to buy real estate. “People who borrow money to buy houses usually have a term of 10-15 years or even 20 years, so preferential interest rates in the first 1-2 years do not account for a large proportion of the total borrowing time,” said Mr. Quoc Anh.
On the other hand, for the group of investors, borrowers from 2022 to early 2023 still have to bear high-interest rates. Banks rarely offer interest rate reduction policies for previous borrowers. That’s why many current borrowers are still concerned.
Which bank offers the highest interest rate for online savings in early February 2024?
Beginning February 1st, 2024, several banks have been adjusting their interest rates downwards for savings accounts ranging from 1 to 24 months. Based on a survey conducted across 16 banks, the highest annual interest rate for online savings deposits at a 6-month term is 5%, while for a 12-month term, it is 5.35%.
4 Factors Putting Pressure on USD/VND Exchange Rate in Q1/2024
With the currency exchange rate fluctuating in the first few weeks of 2024, Mr. Ngo Dang Khoa, Director of Foreign Exchange, Capital Markets and Securities Services at HSBC Vietnam, highlights four factors putting pressure on the USD/VND exchange rate in Q1/2024…
Banks Sacrificing Profits to Support the Economy
In 2023, the question “which bank has the lowest interest rates?” is being talked about more than ever. With the prevailing difficult economic situation affecting individuals and businesses, in line with the directive of the State Bank of Vietnam (SBV), banks have unanimously sacrificed their profits by reducing lending rates and introducing credit packages with interest rates as low as 0%.
