New home loan interest rates fall at some banks
Although the entire banking system has lowered the deposit interest rate many times, the 12-month interest rate has now “broken the mark” of 7%/year. There are not many units that list rates above 8%/year.
However, due to the delay, the interest rate for home loans has not yet created a clear downward trend. This August, only a few pioneering units have deeply reduced interest rates.
Recently, Vietnam Public Commercial Joint Stock Bank (PVCombank) is on the list of banks with the highest home loan interest rates of up to 12%/year. This is the interest rate during the preferential period. After that, this figure can increase to more than 15%/year.
Although not yet a trend, home loan interest rates at some banks have begun to decrease sharply. Illustrative photo
Since August, the preferential home loan interest rate at PVCombank has been adjusted down to only 9%/year, a huge reduction of up to 3%. Some applicable conditions such as the maximum loan ratio and maximum term remain the same at 85% and 20 years.
Hong Leong Bank is also one of the few banks that has aggressively reduced home loan interest rates. Since August, home loan interest rates at this foreign bank have dropped to only 8.5% per year, down 9.5% per year compared to recent times.
However, not many customers will be able to access this credit because this policy only applies to mortgaged assets in Ho Chi Minh City (except Can Gio, Hoc Mon, Cu Chi), central Hanoi and Binh Duong (Thu Dau Mot, Thuan An and Di An).
For many months, Tien Phong Commercial Joint Stock Bank ( TPBank ) has been in the Top banks with the lowest home loan interest rates. However, this August, TPBank also sharply reduced interest rates from 7.8%/year to only 6.8%/year, equivalent to a reduction of up to 1%/year.
Loan term at TPBank is up to 30 years with loan limit reaching 90% of total asset value.
Many places interest rates are over 10%/year
Although some pioneering units have reduced home loan interest rates with very strong "discounts", there are still many units on the market with home loan interest rates above 10%/year.
For a long time, HSBC Bank had the highest home loan interest rate, up to 11.5%/year. Until August 2023, this high rate has not changed significantly.
Global Petroleum Bank (GPBank) also maintains a high home loan interest rate of 11.3%/year. Following are 11.2%/year at An Binh Commercial Joint Stock Bank (ABBank), 11%/year at Asia Commercial Joint Stock Bank (ACB), 10.8%/year at Saigon Hanoi Commercial Joint Stock Bank (SHB), 10.5%/year at Ban Viet Commercial Joint Stock Bank (BVBank), etc.
However, these are just reference numbers because with each different contract, with each customer having a different "credit score", the "finalized" interest rate is also very different.
Tight control of real estate credit risks
Although banks are still pouring capital into real estate, real estate credit is still tightly controlled.
Speaking at the conference on the situation and difficulties of the real estate market held on the afternoon of August 3, Deputy Governor of the State Bank of Vietnam Dao Minh Tu said that in recent times, the State Bank has proactively and promptly adjusted policies, issued and implemented synchronously and optimally tools and solutions to create favorable conditions for people and businesses to access credit capital, contributing to removing difficulties and promoting the safe, healthy and sustainable development of the real estate market.
Deputy Governor Dao Minh Tu did not announce the specific reduction in interest rates for home loans but gave a general picture. To date, the average interest rate reduction of commercial banks has decreased by 1.5 - 2% depending on the type. Many banks have priority and preferential loans.
The State Bank's viewpoint is to closely follow the directions of the State and Government, aiming to support the real estate market to develop healthily and sustainably in the direction of serving the majority of people, especially those with real housing needs, limiting speculation, price inflation, and profiteering.
The Deputy Governor affirmed that the State Bank will continue to strictly control credit risks in the real estate sector, control the level of credit concentration on a number of large customers/customer groups, customers related to major shareholders, related persons of shareholders of credit institutions, etc.
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