(NLDN) While banks simultaneously launched preferential home loan credit packages with interest rates of only 5% / year or more and raced to welcome customers, interest rates on old loans are still high, why? As noted by a reporter of Nguoi Lao Lao newspaper, while deposit interest rates have reached the bottom, a series of …
(NLDN) While banks simultaneously launched preferential home loan credit packages with interest rates of only 5% / year or more and raced to welcome customers, interest rates on old loans are still high, why?
As noted by a reporter of Nguoi Lao Lao newspaper, while deposit interest rates have reached the bottom, a series of banks are launching preferential credit packages for home loans.
In particular, Sacombank deploys a Life Recovery Loan Package (including home loans) for individual customers of VND 10,000 billion with interest rates from 6.5%/year.
At Vietcombank, consultants said that they are lending capital to buy/receive transfer of townhouses, apartments, project houses, building/repairing houses… mortgage by real estate with interest rates from 6.4% / year. Accordingly, the preferential interest rate in the first period if customers borrow a 12-month fixed loan is 6.4%/year, a 36-month fixed loan is 7.5%/year.
The floating interest rate at Vietcombank is 9%/year and changes every 3 months.
Not only domestic commercial banks, home loan interest rates at foreign banks in Vietnam are also falling sharply. Shinhan Bank applies preferential interest rates for 12-month home loans of only 5.2%/year, fixed for 36 months at 6%/year.
“If customers open a new term deposit account with a minimum amount of VND 30 million for a 6-month term, the interest rate is only 5.5% for the first 6 months and the remaining 54 months is 7.5% per year,” Shinhan Bank's consultant said.
UOB Bank offers home loans with fixed interest rates in the first 12 months of 5.49%; 24-month fixed loan with interest rate of 5.89%/year… The floating interest rate at this bank is 9% / year.
The fact that banks race to lend at low interest rates, even fixed interest rates in the first 1-3 years, attracts the attention of many people in need, partly helps the real estate market gradually warm up.
However, interest rates on old home loans are still very high.
Reflecting to the Nguoi Lao Dong Newspaper, Mr. Ngoc Le (located in Binh Thanh district, Ho Chi Minh City) said that he is paying a monthly home loan interest rate of 12.5% / year – much higher than the preferential interest rates for new borrowers that banks are advertising.
“The peak interest on my home loan is 14.9% per annum in June 2023. Now the interest rate has decreased to 12.5% / year, but I feel that it is still too high compared to the interest rate on long-term deposits over 12 months at banks, currently only about 5-5.5% / year” – Mr. Le wondered.
Speaking to reporters, representatives of some banks said that the current low home loan interest rates are preferential interest rates in the first time to stimulate the demand for home loans and credit growth for banks. Even some banks are accepting low-interest loans and suffering losses to push credit.
“Interest rates on old loans at many banks are still around 11-12.5% per annum, because deposit rates are low but there are still many interest rates for customers depositing 12-24, even 36 months in the first period of 2023 that are not yet due.
For example, my transaction office still has about VND 50 billion of customers with long-term savings, interest rate of 9.6% / year before the settlement date,” explained the leader of a branch transaction office of a joint stock bank in Ho Chi Minh City.
Thai Phương
