Banks compete to reduce home loan interest rates, attract customers at the beginning of the year

According to a survey, currently, preferential interest rates for commercial housing loans at banks in January 2024 range from 5.9-10.5%/year. After the preferential period ends, floating interest rates will fall to around 8-13%/year.

Most banks apply two interest rates, which are preferential interest rates applied to short loan terms from 3-12 months and interest rates after the preferential period.

After the preferential period ends, the loan interest rate plus the loan interest rate adjustment margin is commonly from 2-3.8%.

Home loan interest rates of BIG4 banks

The BIG4 banking group (Agribank, Vietcombank, Vietinbank and BIDV) is applying home loan interest rates in the first year from 6.5-8.5%/year.

Agribank applies a fixed interest rate of 7%/year for medium-term and long-term loans for production and business activities, loans for living needs, the period of application of this preferential interest rate is extended from 12 months to 24 months, effective from January 1, 2024. At the same time, the floor interest rate for medium-term and long-term loans for real estate business is adjusted down by 0.5%/year.

At Vietcombank, this bank fixes the loan interest rate for the first 18 months at 6.7%/year, 2 years at 6.8%/year, 3 years at 7.5%/year, 5 years at 9.5%/year, 7 years at 10.5%/year and 10 years at 11%/year for borrowing to buy real estate, buy cars, invest in production and business, etc. After the preferential period, the loan interest rate is calculated by the 12-month savings interest rate plus a margin of 3.5%.

Private banking group is not far behind.

At the private banking group, home loan interest rates are no less attractive than the BIG4 group.

The lowest interest rate belongs to VPBank, lending at 5.9%/year. Loan term is 25 years with maximum lending rate of 75%. The margin added after floating interest rate is 3%.

Ban Viet Bank has a flexible preferential loan package with interest rates from only 6.5%/year being implemented, this interest rate is applied in the first 3 months from the date of disbursement.

ACB applies home loan interest rates of about 7-8%/year or fixed 9%/year fixed for a long period of time, the first 2 years. The floating interest rate margin is 3.5%.

At OCB, the preferential interest rate is 7-8%/year, after the promotion, the loan interest rate is about 10%/year.

The most competitive interest rates of foreign invested banks

At foreign-invested banks, home loan interest rates are even more competitive, ShinhanBank is the bank with the lowest loan interest rate. The preferential interest rate is 6.6%/year fixed for the first 6 months, the maximum loan ratio is 70% for a 30-year loan term. The interest rate margin after floating is 0.3%/year.

For a one-year fixed home loan, the interest rate is 6.8%/year for the first year. Or 7.4%/year and 8%/year for the first 2 and 3 year fixed loan packages.

UOB is offering home loans at an interest rate of 6% per year, the same as Wooribank, for the first year.

In addition, Wooribank also offers loans with a fixed interest rate of 8%/year for the first 2 years or a fixed interest rate of 8.7%/year for the first 3 years. After the preferential period ends, the floating interest rate in the following years will be calculated by the mobilization interest rate of the 4 BIG4 banks plus a margin of 3.5%. It is estimated that the floating interest rate of this bank fluctuates at 8.6-8.9%/year.

Source