The number of searches for small apartments with an area of about 45 square metres has been increasing strongly by more than 200 percent compared to the previous quarter. — Photo cafef.vn )Hanoi (VNS/VNA) - Interest rates of home loans at commercial banks havetended to reduce significantly since the second half of July due to low capitaldemand from business and production.
The home loan interest rates at State-owned banks, including Vietcombank, BIDVand VietinBank were cut by 0.2-1 percentage points per annum for differentterms from the end of July 2020.
Specifically, the preferential interest rate at BIDV was lowered from 8 percentto 7.8 percent per annum on 12-month terms, from 9 percent to 8.8 percent perannum on 24-month terms. By the end of the preferential period, the averagelending rate is 10.1 percent per annum, on a borrowing period of 20 years.
At Vietcombank, home loan interest rates were cut from 8.1 percent to 7.7percent per annum for a preferential term of 12-month. Particularly,Vietcombank provides seven interest rate options so that homebuyers can takethe initiative in calculating loan plans.
At foreign-owned banks such as Standard Chartered, UOB, HongleongBank, HSBC andShinhanbank, the average interest rate of home loan packages is listed at6.49-8.8 percent per annum for one- to three-year loans. In the followingyears, the additional rate is 1.5 3.9 percent per annum based on the depositinterest rates for terms from six months to two years, fluctuating from 10 to10.5 percent per annum. The borrowing terms are from 20 to 25 years, thoibaonganhang.vn reported.
For the group of private joint stock banks, Techcombank made the largestinterest rate decrease to home loan packages. Accordingly, the bank stimulateshome loans with a long term of 35 years with preferential interest rates ofonly 8.29 percent per annum in the first year. After the preferential period,loans of more than 5 billion VND are offered with an attractive rate of 10.8percent per annum.
Other private commercial banks, such as MB, TPBank, VPBank and VIB, also listed12-month preferential interest rates for home loans at 7.7-10.1 percent perannum. After the preferential period, the rates will be adjusted to about 11-15percent per annum.
According to experts, banks’ interest rate cut for home loans is mainly aimedto boost credit growth targets in the middle of low capital demand forproduction and business activities due to the impact of the COVID-19 pandemic.The credit growth expanded only 3.45 percent at the end of July this year.
Besides, banks currently also prefer home loans because they are secured andless risky than loans for business purposes. The sharp interest rate decline tothe lowest level in the past ten years is also creating favourable conditionsfor more people to own home.
However, the current biggest obstacle is that housing prices are stillrelatively high compared to people’s incomes. Therefore, even when the interestrate level has fallen sharply, it is not enough to encourage people to buyhouses.
Thus, if localities, especially big cities like Hanoi and HCM City can boostthe supply of small apartments, social housing and commercial housing forlow-income people with prices of less than 2 billion VND per unit, the homeloans will grow strongly in the next one or two years as demand for the housingsegments has remained high.
Statistics of many real estate exchanges from early Q2 2020 until now havepointed out that the number of searches for small apartments with an area ofabout 45 square metres increased strongly by more than 200 percentcompared to the previous quarter./.
The home loan interest rates at State-owned banks, including Vietcombank, BIDVand VietinBank were cut by 0.2-1 percentage points per annum for differentterms from the end of July 2020.
Specifically, the preferential interest rate at BIDV was lowered from 8 percentto 7.8 percent per annum on 12-month terms, from 9 percent to 8.8 percent perannum on 24-month terms. By the end of the preferential period, the averagelending rate is 10.1 percent per annum, on a borrowing period of 20 years.
At Vietcombank, home loan interest rates were cut from 8.1 percent to 7.7percent per annum for a preferential term of 12-month. Particularly,Vietcombank provides seven interest rate options so that homebuyers can takethe initiative in calculating loan plans.
At foreign-owned banks such as Standard Chartered, UOB, HongleongBank, HSBC andShinhanbank, the average interest rate of home loan packages is listed at6.49-8.8 percent per annum for one- to three-year loans. In the followingyears, the additional rate is 1.5 3.9 percent per annum based on the depositinterest rates for terms from six months to two years, fluctuating from 10 to10.5 percent per annum. The borrowing terms are from 20 to 25 years, thoibaonganhang.vn reported.
For the group of private joint stock banks, Techcombank made the largestinterest rate decrease to home loan packages. Accordingly, the bank stimulateshome loans with a long term of 35 years with preferential interest rates ofonly 8.29 percent per annum in the first year. After the preferential period,loans of more than 5 billion VND are offered with an attractive rate of 10.8percent per annum.
Other private commercial banks, such as MB, TPBank, VPBank and VIB, also listed12-month preferential interest rates for home loans at 7.7-10.1 percent perannum. After the preferential period, the rates will be adjusted to about 11-15percent per annum.
According to experts, banks’ interest rate cut for home loans is mainly aimedto boost credit growth targets in the middle of low capital demand forproduction and business activities due to the impact of the COVID-19 pandemic.The credit growth expanded only 3.45 percent at the end of July this year.
Besides, banks currently also prefer home loans because they are secured andless risky than loans for business purposes. The sharp interest rate decline tothe lowest level in the past ten years is also creating favourable conditionsfor more people to own home.
However, the current biggest obstacle is that housing prices are stillrelatively high compared to people’s incomes. Therefore, even when the interestrate level has fallen sharply, it is not enough to encourage people to buyhouses.
Thus, if localities, especially big cities like Hanoi and HCM City can boostthe supply of small apartments, social housing and commercial housing forlow-income people with prices of less than 2 billion VND per unit, the homeloans will grow strongly in the next one or two years as demand for the housingsegments has remained high.
Statistics of many real estate exchanges from early Q2 2020 until now havepointed out that the number of searches for small apartments with an area ofabout 45 square metres increased strongly by more than 200 percentcompared to the previous quarter./.
VNA
