After Tet, which bank is cheapest to borrow money to buy real estate?

Many banks are applying home loan interest rates of only 5%/year. Recently, a private bank even adjusted this preferential interest rate to 0%/year.

Our survey shows that, up to now (end of February 2024), home loan interest rates at banks have decreased significantly compared to mid-2023. Some banks lowered The average home loan interest rate drops to 5-6%/year during the preferential period. At the end of the preferential period, the home loan interest rate will float at 9-11%/year.

Preferential home loan interest rates at the Big 4 banking group range from 6-7%/year. Among them, BIDV Bank applies the lowest preferential real estate loan interest rate of 6%/year, followed by Vietinbank with 6.4%/year.

Agribank applies a lending interest rate of 7%/year for the first 2 years. Interest rate after floating incentives. However, Agribank only applies a loan period of 5 years.

In the group of private commercial joint stock banks, home loan interest rates range from 6-11%/year.

The current lowest preferential interest rate is 0%/year, applied at TPBank. Accordingly, this bank applies an applicable lending interest rate of 0%/year for the first 3 months, and 9%/year for the next 9 months for customers borrowing less than 65% of the total asset value. The preferential interest rate for customers borrowing for 12 months is 7.5%/year, for 24 months is 8.6%/year and for 36 months is 9.6%/year. For customers borrowing over 65% of the total asset value, the preferential interest rate applied is 8.5%/year for the first 12-month fixed loan package, 9.6%/year for the 24-month/year package and 10.6%/year. %/year for 36 months. In case the customer chooses a 3-month loan package, the preferential interest rate for the first 3 months is 1%/year and 9%/year for the next 9 months.

Techcombank is currently applying a home loan interest rate of only 5%/year during the first 3-month preferential period. 6%/year during the 6-month promotional period or 6.8%/year for the 12-month period. The prepayment penalty fee for the first 3 years is 2%, from the 4th to the 5th year it is 1% and from the 6th year, the bank waives the prepayment fee.

BVBank also has the lowest bank loan interest rate at only 5%/year, the margin after incentives expire is 2%/year.

Meanwhile, the preferential interest rate that VPBank applies is 5.9% for the first 6 months of the year. After the preferential period expires, the floating interest rate is calculated as the reference interest rate plus a margin of 3% per year.

The home loan interest rate at ACB Bank is 7.5%/year for the first 2 years. After incentives, the loan interest rate is calculated as the base interest rate plus a margin of 3.5%. Customers are paid 200 million VND per month in advance without penalty fees.

At the foreign banking group, preferential home loan interest rates also decreased to below 6%/year. For example, Wooribank is applying an interest rate of 5.7%/year for the first 6 months. For the next 54 months, the interest rate is 8.7%/year. For customers choosing the first 1-year fixed package, the preferential interest rate is 6%/year and the first 2-year package, the preferential interest rate is 6.4%/year. For the first 3-year fixed interest rate package, the preferential interest rate is only 6.8%/year. After the promotion ends, the floating interest rate is 3.5%/year.

At Shinhan Bank, the fixed loan interest rate for the first 6 months is 5.8%/year and 7.5%/year for the next 54 months. Fixed loan package for 1 year, applicable interest rate 6.1%/year, fixed for 2 years (6.5%/year) and fixed for 3 years (6.9%/year). Penalty fees range from 1-2%/year. The home loan interest rate is also reduced from 0.1-0.3%/year for customers using credit cards of this bank or with loans of 3 billion or more.

Preferential interest rates for home loans at some banks. (Information is for reference only)

According to the 2024 Outlook Report of Vietcombank Securities, this unit commented: The home loan interest rate level will begin to adjust downward according to the deposit interest rate level. This may stimulate home buyers to begin resuming plans to buy real estate for long-term residence and investment purposes. At the same time, the source of deep loss cutting products from home buyers using high leverage during the exciting market period has been significantly absorbed.

The survey by PropertyGuru Vietnam market research unit at the end of 2023 was conducted with about 2,000 survey participants. Survey results recorded: 44% of people surveyed said that a home loan interest rate of less than 8% is reasonable so they can manage their finances. About 33% of people accept to borrow if interest rates fluctuate from 8-10%. The remaining 14% of people agreed to borrow money at an interest rate of 10-13%.