What’s the Lowest Home Loan Interest Rate You Can Get?

11 May, 2025

Unprecedented Low-Interest Rates

According to a survey by batdongsan.com.vn, it would take young people up to 25.8 years to save up for a 60m2 urban apartment worth approximately 3 billion VND.

At a conference with commercial banks in February 2025, Prime Minister Pham Minh Chinh instructed the State Bank of Vietnam (SBV) and commercial banks to research and introduce preferential credit packages for both supply and demand to develop social housing and housing for young people under 35. This would boost the real estate market and make it easier for people to access loans.

A series of banks have since announced preferential loan packages, reducing the initial financial burden on young people. The loan amount can be flexibly divided according to monthly income.

In addition to lower interest rates, banks have also increased the loan-to-value ratio to 90-100%; extended the grace period to 2-5 years, and the loan term to 20-50 years. These are unprecedented benefits.

Banks are promoting home loans for customers under 35. Photo: Hoang Ha

Mr. Nguyen Duc Lenh, Deputy Director of SBV’s Branch 2, affirmed that housing loan interest rates of banks in the area are currently around 5-6%, 3-4 percentage points lower than during the Covid-19 pandemic. In the first two months of the year, housing credit of banks in the area continuously increased by 1.15% compared to the end of 2024, reaching 1.098 million billion VND, accounting for about 28% of total credit outstanding.

Of which, housing credit (including social housing, commercial housing, and other types of housing) reached over 600,000 billion VND, up 0.67% compared to the end of 2024 and up 7.39% over the same period. The growth rate of housing credit exceeded the general credit growth rate.

According to Mr. Ho Hung Anh, Chairman of the Board of Techcombank, the real estate market is unlikely to break out as expected, but the demand for housing is still very high, and the market’s purchasing power is gradually returning.

A Series of Banks Join the Race

So far, a series of commercial banks have joined the race to offer low-interest loans to young people buying their first homes, including MB, ABBank, ACB, LPBank, HDBank, SHB, Eximbank, TPBank, Vietcombank, BIDV, VietinBank, and Agribank, among others.

Even foreign banks in Vietnam, such as Woori Bank, have entered the market with a loan package offering interest rates as low as 3.9% per annum.

ACB was the first bank to launch a preferential interest rate package for customers aged 18-35, with interest rates as low as 5.5% per annum and a loan term of up to 30 years.

LPBank offers young customers home purchase and construction loans with interest rates as low as 3.88% per annum and a loan term of up to 35 years.

HDBank has announced a 30,000 billion VND credit package for individuals and households wishing to buy homes in 24 major cities, especially young people, with interest rates as low as 4.5% per annum. The loan term is up to 50 years, with a grace period of up to 5 years.

SHB has launched a 16,000 billion VND credit package to serve the housing needs of customers, especially young people, with interest rates as low as 3.99% per annum and a grace period of up to 5 years.

Eximbank has also introduced a home loan package with preferential interest rates of 3.68% per annum for the first 36 months for customers aged 22-35.

TPBank has launched a home loan package for people under 35 with interest rates from as low as 3.6% per annum and a maximum loan amount of up to 100% of the customer’s borrowing needs. The loan term is up to 35 years, with no principal payments for the first 5 years, or only 5% of the principal payment during this period.

Vietcombank has introduced a credit product with preferential interest rates from 5.2% per annum for customers aged 20-35. This program supports loans of up to 70% of the property value, including apartments, private houses, and land, with a grace period of up to 5 years.

Meanwhile, BIDV is applying a fixed interest rate of 5.5% per annum for the first 3 years for customers under 35, from March 26 to December 31, 2025.

Similarly, Agribank has also offered an interest rate of 5.5% per annum for the first 3 years to help people stabilize their finances when accessing large loans. The offer is valid from April 2 to December 31, 2025.

VietinBank has launched a preferential loan package for young customers aged 20 to 35, with interest rates from 5.6% per annum.

At MB Bank, the loan term is up to 35 years, with a loan limit of up to 80% of the property value. For the first 5 years, customers only need to pay interest without principal repayment; for the next 5 years, they only need to pay a minimum of 15% of the principal. The entire process, from registration to disbursement, is carried out on the MB digital banking application.

ABBank, on the other hand, has announced a home loan package for young people aged 19-40, with interest rates from as low as 5% per annum, lending up to 100% of capital needs, and a flexible loan term of up to 35 years.

Some notes on the loan conditions for individual customers buying/leasing a house:

– Customers must have a good credit history and be the direct owner or co-owner with their spouse of the house or land they are buying or leasing.

– At the time of signing the credit contract, the young customer must be of eligible age, up to a maximum of 35 years old, and must not have any outstanding home loans with the bank at the time of the credit grant.

Tuân Nguyễn

– 06:00 04/05/2025