Compare the latest mortgage interest rates from different banks.

Before taking out a mortgage, customers should compare interest rates from different banks to make the best choice. Below are the mortgage interest rates at some banks:

At BIDV , the specific mortgage interest rate depends on the loan package and the purpose of the loan, secured by a land title certificate (red or pink certificate). For home purchase loans, customers can borrow for up to 20 years with a preferential interest rate of 7.3% for the first 6 months. After the preferential period, the interest rate becomes variable, calculated based on the 12-month savings interest rate plus a margin of 4%.

At Vietcombank , customers borrowing to buy real estate can borrow up to 70% of the value of the collateral with preferential interest rates of 7.7%/year for the first 12 months and 8.7%/year for the first 24 months.

At Vietinbank , the lending interest rate is around 8.6% per year. When borrowing to buy a house, customers can borrow for a term of 5 to 20 years.

At Agribank, effective January 1, 2024, the bank adjusted its interest rate policy for medium- and long-term loans serving production and business activities, and loans for living needs, with a fixed interest rate of only 7.0% per year, and the application period extended from 12 months to 24 months. Simultaneously, the floor interest rate for medium- and long-term loans in the real estate business sector was reduced by 0.5% per year.

At VPBank, home loan borrowers receive an interest rate of 6.90%, while car loan borrowers get a rate of 7.49%.

Please note that the specific interest rate depends on the bank, the purpose of the loan, and the time of borrowing.

The most accurate way to calculate bank loan interest rates.

The method for calculating mortgage interest depends on the interest rate calculation method used by the bank. Currently, the most common method used by banks is to pay both principal and interest monthly. The calculation is as follows:

Total monthly payment = Monthly interest payment + Total monthly principal payment.

In there:

Monthly principal payment = Initial loan amount ÷ Number of loan months

First month's interest = Initial loan amount x Monthly interest rate

Interest for the second month = (Initial loan amount - Principal repaid) x Monthly interest rate

Similarly, from the third month onwards, interest will be calculated on the remaining balance.

What is the most advantageous loan term to choose from?

To choose the most advantageous loan term from a bank, customers need to consider the following factors:

Financial capacity: Consider your financial capacity to ensure you can repay the loan on time. If your financial capacity is limited, choose a shorter loan term to reduce the amount of interest you have to pay.

Purpose of loan : Customers need to determine the purpose of the loan to choose a suitable loan term. If the purpose of the loan is for shopping or consumption, a shorter loan term should be chosen. If the purpose of the loan is investment, customers can choose a longer loan term to have time to repay the debt.

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