Real estate market recovery:

Interest rate consultation for customers at Tien Phong Commercial Joint Stock Bank. *Photo: Nguyen Quang*

Demand for home loans increases

Over the past year, the real estate market has "warmed up" again, and the demand for loans to buy real estate has increased sharply. The State Bank has asked commercial banks to develop flexible credit products that suit the needs and financial capabilities of borrowers, focusing on those with real housing needs.

With preferential loan programs, the real estate loan balance ratio of banks is quite large. For example, Vietnam Technological and Commercial Joint Stock Bank ( Techcombank ) has a loan scale of VND 227,000 billion, an increase of more than 21% compared to the end of 2024. By the end of September, the consolidated credit of this bank increased by 21.4%; of which, personal loans increased by 16% (from VND 246,405 billion to VND 285,743 billion), loans to economic organizations increased by 22.2% (from VND 359,408 billion to VND 439,254 billion).

Or like Vietnam Prosperity Joint Stock Commercial Bank ( VPBank ) with 192,821 billion VND outstanding loans for real estate business, accounting for 23.3% of total outstanding customer loans. In addition, the bank also lends 108,768 billion VND to individuals to buy houses (accounting for 13.1%) and 42,823 billion VND in construction loans (accounting for 5.2%).

Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) has outstanding real estate loans increasing from VND68,292 billion to VND83,125 billion; construction loans also increased to VND60,626 billion. Military Commercial Joint Stock Bank (MB) has real estate business loans of VND85,532 billion (up 38%) and construction loans of VND35,918 billion. Loc Phat Joint Stock Commercial Bank (LPBank) has outstanding real estate loans of VND10,196 billion and construction loans of VND32,627 billion. Other banks such as Tien Phong Joint Stock Commercial Bank (TPBank), International Commercial Joint Stock Bank (VIB), Asia Commercial Joint Stock Bank (ACB ) ... also have high outstanding real estate loans.

What should I pay attention to when borrowing?

In fact, many real estate loan packages from banks actually have positive value for borrowers, especially young people.

Mr. Ta Hoang Son (Trich Sai Street, Tay Ho Ward, Hanoi) said: "Borrowing capital from Saigon - Hanoi Commercial Joint Stock Bank (SHB), combined with savings over the past few years, my wife and I have a small apartment, with a total installment loan of about 1.5 billion VND. For me, the loan interest rate is quite "affordable" for many young couples like us...".

Like Mr. Ta Hoang Son, Ms. Nguyen Chau Anh (Duong Noi apartment building, Hanoi) shared: "Currently, my family borrowed about 2 billion VND from the bank, with an interest rate of 6%/year in the first year to buy an apartment. If we bought a new project, the interest rate could be 0% in the first year, but because this is an established area, we accepted to borrow at an interest rate of 6%/year. In my opinion, this interest rate is not high and thanks to the loan, my family owns a private apartment."

In fact, many banks have launched home loan packages for people under 35 years old with loan terms of 35-50 years, preferential interest rates of 3.99-9.99%/year depending on the loan progress and the fixed interest rate period, the maximum loan value is commonly about 70-90% of the house value. Many banks have launched credit products with long loan terms and reasonable interest rates to help borrowers stabilize their cash flow, thereby ensuring their ability to repay the loan.

According to Techcombank representative, the demand for home buying is very high, especially in the two largest cities in the country, Hanoi and Ho Chi Minh City. However, in recent times, the supply of new projects on the market has not been enough, in which the mid-range and low-cost housing segment is very lacking. Therefore, the prospect of home loan credit will increase in the coming time.

Analysts say that before borrowing money from a bank to buy a house, borrowers should start by saving and accumulating equity capital according to the principle of safe borrowing, which is that the principal and interest repayment ratio should not exceed 40-50% of total income. Equity capital is usually about 30% of the house value, but to be safe, it should be at 50%.

The lending interest rate level from now until the end of 2025 and the beginning of 2026 is expected to increase slightly. The State Bank has increased the refinancing interest rate from 4.5%/year to 5%/year in early 2025 to control inflation (currently at 4.2%), which could push lending interest rates up by about 0.5 - 0.8%/year compared to the current level. However, to stimulate demand for consumer real estate credit, banks will have to compete on lending interest rates. In 2026, if inflation is controlled and infrastructure and social housing projects continue to be promoted, home loan interest rates may remain stable or decrease slightly, fluctuating between 5-7%/year for preferential loan packages.

Source: https://hanoimoi.vn/thi-truong-bat-dong-san-hoi-phuc-dong-luc-de-ngan-hang-trien-khai-cho-vay-mua-nha-722016.html