How will home loan interest rates fluctuate in March 2024?

In March 2024, lending interest rates at banks are fluctuating between 5-14.05%/year. After the preferential period ends, floating interest rates will fall to around 8-13%/year.

For the group of state-owned banks, Vietnam Joint Stock Commercial Bank for Industry and Trade VietinBank (HoSE: CTG) applies a preferential interest rate of 8.2%/year for the first 6 months, after which the preferential interest rate is floating, with a maximum loan term of 20 years.

In addition, the bank also implemented a loan program for social housing, worker housing, and projects to renovate and rebuild old apartments according to Resolution No. 33/NQ-CP.

Specifically, the lending interest rate applied from January 1, 2024 to June 30, 2024 for project investors and home buyers in the project is 8%/year and 7.5%/year, respectively. After this period, from July 1, 2024, every 6 months, VietinBank will announce the lending interest rate during the implementation period.

For individual customers borrowing to buy a house, buy a car or take out a consumer loan, Vietcombank (HoSE: VCB) applies an interest rate of 6%/year for the first 6 months for short-term loans (under 12 months); or 6.3%/year for the first 6 months for medium- and long-term loans.

Vietnam Bank for Agriculture and Rural Development (Agribank) is applying a fixed interest rate of 7%/year for medium and long-term loans, the applicable period is extended from 12 months to 24 months. In the following years, the interest rate will be floating.

Vietnam Prosperity Joint Stock Commercial Bank (HoSE: VPB) is applying a rate of 5.9%/year for the first 6 months of the year. The floating interest rate after the end of the above period is calculated by the reference interest rate plus a margin of 3% per year.

Vietnam Maritime Commercial Joint Stock Bank (HoSE: MSB) applies an interest rate of 6.2% for short-term loans of 5 months, an interest rate of 6.8% for short-term loans of 6 months, 6.8% for medium and long-term loans fixed for 12 months and 8% for medium and long-term loans fixed for 24 months.

Woori Bank Vietnam Limited (Woori Bank) is listing a loan package of 5.3% fixed for the first 6 months and 8.3% fixed for the next 54 months; or 5.6% fixed 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 by the average of the 12-month term deposit interest rate for individuals of state-owned banks plus a margin of 3.5% or more.

Interest rates for real estate loans at Saigon Thuong Tin Commercial Joint Stock Bank (HoSE: STB) are 6.5%/year for 6 months, 7.5%/year fixed for 12 months, 8.5%/year fixed for 24 months.

BVBank (UPCoM: BVB) currently has the lowest lending interest rate in the banking system, starting from only 5%/year, with a margin of 2%/year after the end of the incentive, applicable until March 31, 2024.

Most banks offer attractive home loan interest rates, even adjusting interest rates down by 0.5-3%/year in March 2024, but the preferential interest rates are only applicable in the short term, after the preferential period, they will float according to market interest rates. Regarding home loan conditions, most banks require customers to be 18 years of age or older, have a good credit score, stable income and ensure debt repayment ability, etc.

According to the strategic report of Nhat Viet Securities Company (VFS), the slow growth of real estate credit, which accounts for a large proportion of the economy's credit structure (including credit for real estate development enterprises and for real estate buyers), has put pressure on credit growth in 2023.

Therefore, VFS expects that when home loan interest rates decrease to a more attractive level, it will create momentum for home loan demand to return from the second half of 2024, although it is difficult to record a breakthrough due to supply issues and home buyers' confidence in investors depending on the effectiveness of legal changes and support from policies, which take a lot of time.

According to KB Vietnam Securities JSC (KBVS), deposit interest rates are expected to remain low, while lending interest rates will decrease by another 0.75% -1% compared to the end of 2023.

Although there is not much room to reduce interest rates, being able to maintain low interest rates is an ideal condition to support the real estate market, reduce borrowing costs for businesses, as well as stimulate people's demand, thereby promoting economic growth .

Source