Home loan interest rates in October 2023 drop sharply

Home loan interest rates in October 2023 drop sharply

The mobilization interest rate level has continuously decreased sharply and fallen below the 6%/year mark. Lending interest rates have a large lag, in which home loan interest rates decrease more slowly than other lending sectors.

It will not be until October 2023 that home loan interest rates will decrease sharply and fall close to 10%/year.

Specifically, in September, HSBC Bank was the unit with the highest home loan interest rate in the market at 11.5%/year. However, in October, the British bank applied a new interest rate schedule, only 9.75%/year, corresponding to a decrease of 1.75%/year.

Interest rates change but other terms remain the same: Maximum loan ratio (70%), maximum loan term (25 years).

Home loan interest rate October 2023 decreased after image 1 — Home loan interest rates in October 2023 dropped sharply, close to 10%/year. Illustrative photo

Hong Leong Bank has also drastically reduced its home loan interest rates. Currently, the bank applies a rate of 7.5%/year, down 1%/year compared to 1 month ago.

On the other hand, Shinhan Bank has added its name to the list of banks that “go against the flow” when increasing lending rates. Accordingly, this bank adjusted its listed rate to 7.6%/year from 7.5%/year in September 2023.

Meanwhile, most of the remaining units have not changed their listing rates. The highest rate of 10.99%/year belongs to Maritime Commercial Joint Stock Bank (Maritime Bank). Although having the highest interest rate, Maritime Bank has quite a comfortable policy. Accordingly, the maximum lending rate is up to 90% and the maximum loan term is 35 years.

In addition to Maritime Bank, there are two other banks that maintain home loan interest rates above 10%/year. They are Tien Phong Commercial Joint Stock Bank (TPBank) with 10.7%/year and Vietnam Technological and Commercial Joint Stock Bank (Techcombank) with 10.5%/year.

On the other hand, the lowest home loan interest rate in the market belongs to Woori Bank at 7.2%/year, unchanged from last month. At Woori Bank, the maximum loan ratio is 80% and the maximum loan term is 30 years.

It can be seen that in October, home loan interest rates have decreased quite deeply. However, the reduction is only applied to a few individual banks and has not spread to the whole market.

Each province benefits differently.

Since the middle of this year, interest rates for home loans have begun to decrease. And each province and city benefits differently from this policy.

Specifically, as of September 29, 2023, credit in the entire economy reached about VND 12,749 trillion, up 6.92%. For the real estate sector, the State Bank has directed and requested credit institutions to create favorable conditions for real estate project investors and home buyers to access credit when fully meeting the credit granting conditions as prescribed; consider granting credit to both investors, construction contractors, home buyers and production units providing construction materials and supplies to increase capital circulation and liquidity for the real estate market.

At the same time, the State Bank requested relevant units to urgently issue documents guiding the main contents on interest rates and preferential periods to implement the VND120,000 billion program to develop social housing, workers' housing and renovate and rebuild old apartments according to Resolution 33 of the Government.

In Thai Nguyen province, as of September 30, 2023, outstanding loans reached about VND 86.6 trillion, an increase of 4.51% compared to December 31, 2022. Besides some sectors witnessing negative credit growth, some sectors have high growth rates such as processing and manufacturing industry increased by 7.55%, real estate business activities increased by 14.45%, ...

In Bac Ninh province, in the third quarter of 2023, bank branches and credit institutions in the area continued to implement many positive solutions to support customers in accessing credit sources, such as reducing lending interest rates, reforming administrative procedures, applying 4.0 technology in developing banking products and services, implementing many preferential loan packages, directing credit to priority areas, focusing on lending for production and business,...

By the end of August 31, 2023, outstanding credit in Bac Ninh province reached over 154 trillion VND, an increase of 5.8% compared to the end of 2022 (higher than the national increase: 5.56%). However, real estate credit went against the trend when it decreased by 23.79%. Of which, real estate business credit accounted for nearly 53%, down 2.64%, outstanding real estate credit for consumption and self-use purposes decreased sharply by 38.59%.

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