Demand for home loans remains low, although interest rates have decreased by 1-3 percentage points per year compared to the beginning of this year.
Recent surveys at many banks show the current home loan interest rates standing at 8-10 percent per year.
Specifically, in the group of State-owned commercial banks, Agribank offers home loans with a first-year interest rate of 8.5 per cent per year. Vietcombank has a real estate loan package with interest rates for the first 12 months of 8.5 per cent per year, the first 18 months of 8.8 per cent per year, and the first 36 months of 9.7 per cent per year.
According to the VNA (Vietnam News Agency), foreign-owned banks in Vietnam have reduced mortgage loan interest rates.
Even though there is demand for housing, it is difficult for banks to stimulate demand for home purchase credit currently. On the other hand, the real estate market remains slack, so individual customers are not interested in borrowing money to buy houses.
Hoàng Hải, director of the Ministry of Construction’s Department of Housing and Real Estate Market Management, said that as of 31 August this year, outstanding loans for real estate business activities reached nearly VNĐ986.5 trillion, an increase of more than VNĐ26 trillion compared to 30 July this year.
The amount of outstanding loans for urban area construction investment projects and housing development projects are nearly VNĐ266.25 trillion, and the value for office projects, industrial park and export processing construction projects, and tourist, ecological and resort projects was VNĐ40.62 trillion, VNĐ56.57 trillion, and VNĐ53.86 trillion, respectively.
Compared to the beginning of this year, lending interest rates are currently considered reasonable and are expected to return to low levels, as seen during the COVID-19 pandemic, by the end of the year.
