Unexpected home loan interest rates after the promotional period.

(NLDO) - Many banks are launching home loan packages with incredibly low interest rates, starting from 3.99% and 5.5% per year. Interest rates on existing loans are currently much higher.

On February 22nd, Saigon - Hanoi Bank (SHB ) became the latest name to join the market, launching a loan package for young people to buy houses, following ACB.

Accordingly, from now until the end of 2025, SHB is implementing a 16,000 billion VND loan package to meet home purchase needs with preferential interest rates starting from 3.99% per year. This is a record low interest rate on the market today, considering the initial preferential period. Customers can borrow up to 90% of the value of the property they intend to buy, with no limit on the loan amount.

Borrowers are also exempt from principal payments for the first 60 months – equivalent to 5 years – and are offered attractive credit cards/overdraft limits.

"Customers borrowing to buy a house can be flexible in choosing suitable collateral such as: securities/deposit balances, real estate intended to be purchased with the loan/other already owned real estate or a car" – an SHB representative informed.

Previously, Asia Commercial Bank (ACB ) was the first commercial bank to launch a loan package for young people to buy houses, after the Prime Minister requested the State Bank of Vietnam and commercial banks to research and develop credit packages for young customers.

However, according to investigations by reporters from Nguoi Lao Dong Newspaper, the low-interest rate promotional packages offered by ACB, SHB, PVcombank, Vietcombank, Agribank , etc., are mainly valid for the initial period (3-6 months). After this period, the interest rate will be floating, calculated as the base interest rate plus a margin of 3%-4.5% per year. The interest rate after the promotional period will be 8%-10% per year.

The demand for bank loans to buy houses among young people is very high.

Following the announcement of low-interest home loan packages, many people have complained to the Nguoi Lao Dong newspaper about the high interest rates they have to pay on existing home loans. Ms. Ngoc Bich (residing in Binh Thanh District, Ho Chi Minh City) said that she currently pays about 13 million VND per month in principal and interest on her home loan, with an interest rate of 11.7% per year. Her home loan, taken out several years ago, still has an outstanding balance of over 1 billion VND.

"I see banks announcing many new loan packages with preferential interest rates, but the interest rates on existing loans haven't decreased. The 11.7%/year interest rate that the bank has been applying for almost a year now hasn't been adjusted downwards," complained Ms. Bich.

Some others reported having to pay interest rates of 12%-13% per year, or even higher. Ms. Khanh Van (residing in District 12, Ho Chi Minh City) said that her loan of nearly 2 billion VND at a foreign bank is still paying an interest rate of 12.2% per year. This interest rate has been applied all year and has not been adjusted.

"Seeing information about banks offering loans to repay other banks, I contacted them as well. But after the initial preferential period, the interest rate will float, around 10%-11% per year, not to mention having to buy additional life insurance. To this day, I'm still struggling with this 12.2% per year loan," said Ms. Van.

According to experts, interest rates are only one factor. To buy a house, borrowers also rely on many other factors such as their income and the supply of real estate projects. At the same time, borrowers need to carefully calculate their financial plan to ensure their ability to repay the debt. They should avoid initially offering preferential interest rates that later become variable and exceed their ability to pay.

Source: https://nld.com.vn/bat-ngo-lai-suat-vay-mua-nha-sau-uu-dai-196250222153535469.htm