Many banks stop preferential loan packages, young people "disillusioned" with buying a house

(Dan Tri) - Many young people who had hoped to own a house soon thanks to low interest rates of 5-6%/year were disappointed when a series of banks announced the end of preferential policies. The increase in actual interest rates has forced them to postpone their housing plans.

Young people disillusioned by interest rates

Despite the massive launch of low-interest loan packages at the beginning of the year to stimulate demand, many major banks have now quietly suspended or narrowed their incentive programs for young customers.

Mr. Minh (28 years old, Hanoi ), who was researching loan documents to buy his first apartment, was unexpectedly hit with a "cold shower" when he went to a branch of a large commercial bank. Instead of the attractive interest rate as expected, he was informed that the program for young people had been suspended.

“I heard from friends that the preferential interest rate used to be only 5.5-6% for the first few years, but now the bank staff informed me that it is no longer applicable. The current interest rate is much higher, so I have to reconsider my home buying plan,” Minh shared.

Also in a "dilemma", Ms. Thu Trang (31 years old, Hanoi) said that she had previously been advised of a fixed interest rate loan package of 5.6%/year for the first 3 years. However, when she returned to complete the procedures at the beginning of this month, she was "shocked" because the program had stopped, and the new interest rate had jumped to about 7.5%/year.

Ms. Trang worried: “I have calculated the payment according to the old preferential rate, now the increased interest rate makes the monthly payment exceed the family's ability. Maybe I have to postpone the plan to buy a house for at least a few months to see if the market stabilizes.”

"The change from preferential interest rates of around 5.5-6%/year to 7-8%/year has caused monthly installments to increase sharply, especially for large loans lasting several decades, so I really have to reconsider my loan plan," Ms. Trang added.

Money is put into the counting machine for checking (Photo: Thanh Dong).

Many banks stop promotions

Actual surveys show that a wave of narrowing incentives is taking place at many banks. Some banks still maintain preferential loan packages for young people, but have adjusted interest rates.

Agribank recently announced that it has stopped implementing a number of preferential loan programs for individual customers, including home loan packages for young people and loans for living needs (buying a house, repairing, receiving land transfers...).

However, this bank still maintains a "bright door" for the social housing segment. For customers under 35 years old buying social housing, the applicable interest rate is about 6.1%/year (2% lower than the average interest rate of the Big 4 group) in the first 5 years.

A credit officer of BIDV also informed that the preferential loan program for young people to buy commercial housing of this bank is temporarily suspended. Previously, individual customers up to 35 years old who want to buy/rent-purchase houses nationwide are supported by BIDV with an interest rate of 5.5%/year (term of 3 years), loan period of up to 40 years and especially no principal payment within 5 years applied on a maximum amount of 5 billion VND per customer.

VietinBank's credit officer also informed that this unit no longer has the preferential interest rate package of 5.6%/year (3-year term), instead applying an interest rate of 7.5%/year for 18 months.

Checking money transactions at the bank (Photo: Manh Quan).

From the "boost" at the beginning of the year to the pressure at the end of the year

Earlier this year, following Prime Minister Pham Minh Chinh’s directive to launch preferential credit packages to support the real estate market, a series of commercial banks joined the race with low-interest home loan programs, especially targeting young customers. A series of banks attracted attention at that time when launching credit packages worth thousands of billions of VND with loan terms of up to 50 years.

Thanks to these incentives, many young people expect to be able to “touch” their first home sooner when the pressure to repay debt is significantly reduced in the initial stage. Thus, after less than a year of implementation, the context of tight credit and increased capital mobilization pressure has caused banks to simultaneously narrow down preferential loan packages.

"The change from preferential interest rates of around 5.5-6%/year to 7-8%/year has caused monthly installments to increase sharply, especially for large loans lasting several decades, so I really have to reconsider my loan plan," said Ms. Thu Trang.

According to the Head of Analysis and Investment Consulting of a Hanoi-based Securities Company, the suspension or reduction of preferential loan packages for young people is mainly due to the pressure of rising interest rates in the market. In the past half year, savings interest rates have tended to increase, forcing banks to adjust lending interest rates to balance capital costs.

Leaders of many banks and reports from securities companies previously also predicted a slight increase in lending interest rates at the end of the year, especially in the context of the system needing to ensure liquidity and medium- and long-term capital.

At the same time, the real estate market still lacks suitable housing supply and prices have not cooled down, making banks more cautious with incentive programs lasting decades.

"Therefore, despite launching many attractive loan packages at the beginning of the year, banks are starting to narrow or pause to adjust policies, resulting in young people looking to buy a home for the first time being most clearly affected," the expert emphasized.

Source: https://dantri.com.vn/kinh-doanh/nhieu-ngan-hang-dung-goi-vay-uu-dai-nguoi-tre-vo-mong-mua-nha-20251206174447889.htm