The first bank to reduce interest rates to 5.5%/year for people under 35 years old to borrow to buy a house

A bank has just launched a loan package with an interest rate of 5.5%/year for young customers aged 18-35, with a loan term of up to 30 years.

Specifically, ACB Bank has launched the "First Home" loan package for young people with a long loan term of up to 30 years, a fixed interest rate for the first period of up to 5 years, and a loan interest rate of 5.5%/year. What is special is that customers are flexible in repaying the debt with a small amount in the first years and gradually increasing it according to the future income of young customers.

ACB's loan package is also designed not only with interest rates from 5.5%/year but also focuses on peace of mind such as long loan terms, principal repayment methods suitable for customers' income and preferential interest rates for the first fixed period up to 60 months (5 years) with interest rates up to 3% lower than the announced interest rates.

ACB also applies a flexible repayment method, requiring only 2% of the principal to be paid each year. Borrowers are also granted a principal grace period of up to 12 months from the date of disbursement, free collateral valuation, and preferential early repayment fees when making monthly payments.

Previously, the Ho Chi Minh City Real Estate Association (HoREA) proposed that the State Bank develop a credit incentive mechanism for young people (18-45 years old) to buy low-cost commercial houses for the first time. Accordingly, the preferential interest rate is from 6-7% per year, the loan is secured by the purchased property and the preferential interest rate period lasts from 10-15 years.

Young people will be able to borrow money to buy houses at preferential interest rates. (Photo: Minh Duc).

HoREA emphasized that this interest rate support policy can create a boost for the market, encourage businesses to restructure existing real estate projects, focusing on investing in the affordable commercial housing segment. At the same time, this contributes to restructuring the market in a safe, healthy and sustainable direction.

Mr. Le Hoang Chau, Chairman of HoREA, informed that this proposal is to increase housing accessibility for young people: “ The goal of this proposal is to support young people with average incomes to access housing and encourage businesses to invest in the affordable housing segment, which is currently scarce in the market.

Besides, most young people are ambitious and have a long life to do business and pay off debts. Usually after about 10-15 years, their income will double or more than double, so there is almost no risk for commercial banks to lend .

HoREA also believes that if a preferential interest rate of 6-7% per year is applied to home buyers, it will encourage businesses to restructure existing real estate projects, shift investment to the affordable commercial housing segment and, together with the "Program to develop at least 1 million social housing apartments in the 2021-2030 period", will restructure the real estate market in a safe, healthy and sustainable manner.

At a recent meeting with commercial banks, Prime Minister Pham Minh Chinh also asked the State Bank and banks to study preferential credit packages to develop housing for young people aged 35 and under.

Source