What Direction Will Mortgage Rates Take in September?

Home Loan Interest Rates for September

According to a survey by Tien Phong, in September, the state-owned bank group (Agribank, Vietcombank, Vietinbank, and BIDV) offered home loan packages with interest rates ranging from 5.2% to 8.5% per year.

At Agribank, the medium and long-term interest rates for real estate business loans are as follows: 6% per annum fixed for the first 6 months; 6.5% per annum fixed for the first 12 months (applicable to loans with a minimum term of 3 years); or 7% per annum fixed for the first 24 months (applicable to loans with a minimum term of 5 years).

Vietcombank offers home loan interest rates of 5.7% per annum fixed for the first 12 months; 6.5% per annum fixed for the first 2 years; and 8.5% per annum fixed for the first 3 years. After the promotional period, the interest rate will be the 12-month post-paid deposit rate of Vietcombank + 3.5%, currently at around 9% per annum.

VietinBank’s interest rates for home construction and renovation loans are as follows: Fixed at 6.0% per annum for the first 12 months; fixed at 6.2% per annum for 18 months; fixed at 6.7% per annum for 24 months; or fixed at 8.2% per annum for 36 months. The floating interest rate margin after the promotional period is 4.5%, and Vietinbank’s current floating interest rate is around 9% per annum.

At BIDV, the interest rate for home loans in Hanoi and Ho Chi Minh City is 5.2% per annum fixed for the first 6 months, 5.5% per annum fixed for the first 12 months (applicable to loans with a minimum term of 36 months); or 6% per annum fixed for the first 18 or 24 months (minimum loan term of 60 months).

For BIDV in other provinces, the home loan interest rate is 6% per annum fixed for the first 12 or 24 months (applicable to loans with a minimum term of 36 months); or 6.5% per annum fixed for the first 18 or 24 months (applicable to loans with a minimum term of 60 months). After the promotional period, the floating interest rate will be calculated as the 12-month deposit rate + a margin of 3.5%. BIDV’s current floating interest rate is around 8.2% per annum. Early repayment fees: 1% in the first year, 0.5% in the second and third years, and no fee from the third year onwards.

For joint-stock commercial banks, home loan interest rates range from 0% to 9.5%, depending on the term.

For example, TPBank’s promotional interest rates for home purchase/construction/renovation loans are as follows: 0% fixed for the first 3 months; 6.6% fixed for the first 12 months; 7.6% fixed for the first 24 months; 8.6% fixed for the first 36 months. The floating interest rate = 3-month base interest rate for customers with outstanding credit history + 3.3%, currently at around 11.2%.

ACB offers medium and long-term interest rates of 9.5% per annum fixed for 5 years; 7.5% per annum fixed for 2 years; and 7.0% per annum fixed for 1 year. Customers can prepay up to VND 100 million per month without penalty. After the promotional period, the interest rate will float and be calculated as the base rate + a margin of 3%, ranging from 11% to 11.7% per annum. For short-term loans (serving production and business activities): 6.7% per annum fixed for 3 months; or 7.2% per annum fixed for 6 months.

For foreign banks (Woori Bank, Shinhan Bank, Standard Chartered, Hong Leong Bank, and Public Bank Vietnam), promotional home loan interest rates for September range from 5.5% to 7%, depending on the bank.

High Interest Rates for Social Housing under the VND 120,000 Billion Package

According to the State Bank of Vietnam, as of the end of August 2024, interest rates for the VND 120,000 billion program have decreased by 1% per annum compared to the period from January 1, 2024, to June 30, 2024, and by nearly 2% per annum compared to the beginning of the program.

The borrowing subjects are project investors and home buyers in these projects. The lending conditions are that the projects must be on the list announced by the Ministry of Construction, and the borrowers must be eligible for support policies and meet the loan conditions prescribed by law.

The applicable interest rate is 7% per annum for investors, valid for 3 years from the disbursement date. For home buyers, the interest rate is 6.5% per annum, valid for 5 years from the disbursement date.

According to experts, the interest rate for the VND 120,000 billion package has decreased by 1% per annum compared to the first 6 months of this year and by nearly 2% per annum compared to the beginning of the program. However, the interest rate of 7% per annum for enterprises and 6.5% per annum for home buyers is not lower than the interest rates offered by many commercial banks.

In fact, this interest rate is higher than the preferential interest rate for social housing loans, which is currently at 4.8-5% per annum (this interest rate is applicable until December 31, 2024).