Home loan interest rates hit new "bottom" in November

Home loan interest rates hit new "bottom" in November

Lending interest rates always lag behind deposit interest rates. After a long period of continuous reduction in deposit interest rates to a very low level, below 6%/year, in recent months, home loan interest rates have caught up with the downward trend of deposit interest rates.

Home loan interest rates in November continued to hit a new "bottom", the general level has moved away from the 10%/year mark.

Specifically, if last month, the highest rate in the market belonged to Maritime Bank (MSB) with 10.99%/year, now, the home loan interest rate of this bank is only 8.99%/year, corresponding to a decrease of 2%. This is a very large adjustment.

Home loan interest rate November new set image 1 — Home loan interest rates in November 2023 hit a new low, much lower than the 10%/year mark. Illustrative photo

Home loan interest rates at MSB have dropped sharply, but some other loan conditions remain the same, such as: maximum loan ratio of up to 90% and maximum loan term of 35 years.

Along with MSB, last month, Tien Phong Commercial Joint Stock Bank (TPBank) and Vietnam Technological and Commercial Joint Stock Bank (Techcombank) also had home loan interest rates above 10%, at 10.7%/year and 10.5%/year, respectively. However, this November, both TPBank and Techcombank applied the rate of 8.5%/year, corresponding to a decrease of 2.2%/year and 2%/year.

Meanwhile, the “bottom” interest rate for new home loans belongs to Vietnam Prosperity Joint Stock Commercial Bank (VPBank) at 5.9%/year. This is the lowest rate in the market today.

Some other units also have relatively low home loan interest rates such as: GPBank (6.25%/year), MBBank (7.5%/year), Hong Leong Bank (7.5%/year), SHB (7.5%/year), OCB (7.5%/year), Sacombank (7.5%/year),...

On the other hand, there are still some units that unexpectedly increase interest rates. That is Woori Bank. The lending interest rate at this bank increased sharply from 7.2%/year to 8%/year. But 8%/year is not the highest level in the market. Currently, some units still list the lending interest rate in November above 9%/year such as: HSBC (9.75%/year), VIB (9.5%/year), UOB (9.49%/year), SeABank (9.29%/year), ...

Interest rates continue to fall

At the regular October Government press conference held on the afternoon of November 4, Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu mentioned the situation of reducing lending interest rates in the banking system.

According to the Deputy Governor of the State Bank, some previous loans, when commercial banks mobilized high, could still be anchored high due to policy lag. To ensure the harmony of financial plans of commercial banks when mobilization is high, lending is also commensurate and similar to it.

Therefore, the State Bank has also requested commercial banks to use all measures from now until the end of the year to reduce, including previous lending interest rates, to ensure support for businesses.

"Most specifically, on the afternoon of October 27, the State Bank of Vietnam held a conference for the entire industry with 35 large commercial banks that account for the majority of lending to the economy. The conference pointed out which banks have high interest rates and which banks have low interest rates, so that the banks with high interest rates can find measures to reduce support interest rates," said Deputy Governor Dao Minh Tu.

When the general lending interest rate decreases, the home loan interest rate will decrease accordingly.

Thoroughly promote credit lending to the real estate sector

On October 24, Prime Minister Pham Minh Chinh signed Official Dispatch No. 993/CD-TTg on continuing to resolutely implement solutions to develop a safe, healthy and sustainable real estate market, contributing to promoting socio-economic development.

At the same time, Governor of the State Bank of Vietnam Nguyen Thi Hong directed commercial banks to continue promoting credit lending to the real estate sector; have appropriate solutions to reduce costs to reduce interest rates.

Continue to review and further reduce inappropriate, cumbersome, and costly administrative procedures so that businesses, real estate projects, and home buyers can access credit sources more easily.

There are special credit promotion policies for feasible real estate projects with fast implementation progress, creating momentum for growth and promoting the real estate market.

Direct commercial banks to urgently guide credit loan procedures for projects that have been announced as eligible and in need of loans for both investors and home buyers of the 120,000 billion VND credit program.

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