With all kinds of interest rate incentives, should I take out a bank loan to buy a house now?

Many banks have launched a series of preferential credit packages for home loans, especially for young people, not only with long fixed interest rates but also with principal grace periods of up to 10 years...

Currently in need of a loan to buy an apartment for rent, Mr. Nhat Thinh (living in Binh Thanh District, Ho Chi Minh City) said he is overwhelmed by the preferential interest rate credit packages of many banks. Because never before has the real estate loan segment, from apartments, townhouses, land plots... been promoted by banks with as many choices as it is now.

"I plan to borrow to buy an apartment in Ho Chi Minh City for rent for about 3-4 billion VND, I have 1 billion VND available but I am still worried that the interest rate after the preferential rate will increase?

Will the interest rate trend increase at the end of the year? Is the loan procedure easy for apartment projects that do not have a certificate?" - Mr. Thinh said.

According to the reporter of Nguoi Lao Dong Newspaper, a series of banks such as Sacombank, BIDV, Agribank, TPBank, HDBank, VIB, SHB, VPBank, ACB... are launching preferential packages for home buyers, especially young people, following the policies of the Government and the State Bank.

At TPBank, customers can register for a loan to buy a project house through the TPBank Partner application to access a loan limit of up to 10 billion VND. The maximum loan term is 35 years and the loan ratio is up to 80% of the real estate value. This bank also applies a principal grace period policy of up to 60 months, with competitive interest rates from only 3.6%/year.

Not only preferential interest rates, many banks are competing to provide home loans with long loan terms of up to 30-50 years, instead of only about 20-30 years as before. The principal grace period policy of up to 10 years (customers only pay a portion of the principal or interest during this period) is also a competitive factor.

With interest rates, the seasonal capital demand is usually very high at the end of the year and is usually higher in the fourth quarter when customers need to complete orders, complete financial plans, etc.

With increasing capital demand, banks will have to mobilize more. To do so, banks will increase deposit interest rates and may adjust lending interest rates accordingly. This year may be different, as currently, many banks are still trying to maintain low lending interest rates, but how long this lasts depends on the financial capacity of each unit.