Which bank has the lowest home loan interest rate?

The Vietnam Association of Realtors (VARS) has just announced a list of home loan interest rates based on a survey by the Real Estate Financial Services Company (FINA).

The survey was conducted with 13 commercial banks (home loans) including: VPBank, VIB, OCB, Standard Chartered, PVCombank, UOB, TPBank, VCB, ACB, OceanBank, MBbank, HongLeong, MSB.

Home loan interest rates currently range from 10.5 - 15.5%/year after the 12-month preferential period ends.

Specifically, the interest rate table shows that, in the first 12 preferential months, the interest rates applied by the above banks range from 7.99%/year to 11.8%/year.

Of which, Standard Chartered is 7.99%; ACB is 8.5%; VCB is 9%; OCB is 10.5%; TPBank is 10.9%; VPBank is 11.8%...

Post-incentive interest rates at these banks range from 12.1%/year to 15.5%/year.

Of which, PVCombank is 15.5%; MSB is 14.6%; VPBank is 14%, TPBank is 13.75%; MBBank is 13.7%, VIB is 13.2%, ACB is 13.4%...

The home loan limit of banks in July is about 70 - 85% of the apartment value. The loan term commonly fluctuates between 20 - 35 years.

In case the customer pays off the loan before the due date, the interest rate will be 1-3% higher than the normal interest rate due to the early repayment penalty fee.

Regarding current lending interest rates, sharing with VietNamNet reporter, Mr. Nguyen Van Hau, General Director of Asian Holding Real Estate JSC, assessed that although the operating interest rate has continuously decreased, lending interest rates have not decreased much, like in 2021-2022 (at 7.5%).

“The lending interest rate at commercial banks is currently around 10%. If the lending interest rate is lowered by another 1-2%, to 8% or less, it will have a positive impact on the real estate market,” Mr. Hau said.

In a recent seminar on the real estate market, Dr. Nguyen Van Khoi, Chairman of the Vietnam Real Estate Association, also recommended that banks continue to reduce lending rates for key production and business sectors, import and export; including real estate to stimulate demand faster.

According to Mr. Khoi, the interest rate for commercial housing loans at prices suitable for income is below 7%/year. The interest rate for loans to businesses building social housing should be below 6%/year and for social housing buyers should be below 4.5%/year.

For tourism and resort real estate, the recommended loan interest rate is below 9%/year; for high-end residential real estate, the recommended loan interest rate is 9 - 10%/year.

Interest rates continue to decrease, when will real estate 'heat up' again? Cooling down interest rates somewhat affects the real estate market, especially market sentiment, liquidity has improved. How will the real estate market change from now until the end of the year?

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