Compare latest mortgage interest rates of banks

Before taking out a mortgage, customers should compare interest rates from banks to make the best choice. Below are mortgage interest rates from some banks:

At BIDV, the specific mortgage interest rate depends on the loan package and the purpose of the loan, with collateral being the red book or pink book. If borrowing to buy a house, customers can borrow for a term of up to 20 years, with a preferential interest rate of 7.3% for the first 6 months. After the preferential period, the interest rate is floating, calculated based on the 12-month savings interest rate + a margin of 4%.

At Vietcombank, customers borrowing to buy real estate can borrow up to 70% of the value of the collateral with preferential interest rates of 7.7%/year for the first 12 months and 8.7%/year for the first 24 months.

At Vietinbank, the loan interest rate is around 8.6%/year. When borrowing to buy a house, customers can borrow for a term of 5 - 20 years.

At Agribank, from January 1, 2024, the bank will adjust the interest rate policy for medium-term and long-term loans for production and business activities, loans for living needs with a fixed interest rate of only 7.0%/year, the applicable period is extended from 12 months to 24 months. At the same time, the floor interest rate for medium-term and long-term loans for the real estate business sector will be reduced by 0.5%/year.

At VPBank, home loan customers receive an interest rate of 6.90%, and car loan installments are 7.49%.

Note, specific interest rates depend on each bank, loan purpose and loan period.

How to calculate bank loan interest most accurately

The way to calculate bank mortgage interest depends on the interest calculation method applied by the bank. Currently, the common method of calculating mortgage interest of banks is to pay principal and interest monthly. The calculation is as follows:

Total monthly payment = Monthly interest payment + Total monthly principal payment.

In there:

Monthly Principal = Initial Loan Amount ÷ Number of Loan Months

First month interest = Initial loan amount x Monthly interest rate

2nd month interest = (Initial loan amount - Principal paid) x Monthly interest rate

Similarly from the 3rd month onwards, interest will be calculated on the remaining balance.

How to choose the most beneficial bank loan term?

To choose the most beneficial bank loan term, customers need to consider the following factors:

Financial capacity: You need to consider your financial capacity to ensure that you can repay the loan on time. If your financial capacity is limited, you should choose a shorter loan term to reduce the amount of interest you have to pay.

Loan purpose : Customers need to determine the loan purpose to choose the appropriate loan term. If the loan purpose is for shopping or consumption, a shorter loan term should be chosen. If the loan purpose is for investment, customers can choose a longer loan term to have time to repay the debt.

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