Demand for home loans is increasing.
Over the past year, the real estate market has warmed up again, leading to a sharp increase in demand for loans to purchase property. The State Bank of Vietnam has requested commercial banks to develop flexible credit products that suit the needs and financial capabilities of borrowers, focusing on those with a genuine need for housing.
With preferential loan programs, the proportion of outstanding real estate loans at banks is quite large. For example, Vietnam Technological and Commercial Bank ( Techcombank ) has a loan portfolio of VND 227,000 billion, an increase of more than 21% compared to the end of 2024. As of the end of September, the bank's consolidated credit increased by 21.4%; of which, loans to individuals increased by 16% (from VND 246,405 billion to VND 285,743 billion), and loans to economic organizations increased by 22.2% (from VND 359,408 billion to VND 439,254 billion).
For example, Vietnam Prosperity Commercial Joint Stock Bank ( VPBank ) has outstanding loans for real estate business at VND 192,821 billion, accounting for 23.3% of its total customer loans. In addition, the bank also provides personal loans for home purchases totaling VND 108,768 billion (13.1%) and loans for construction totaling VND 42,823 billion (5.2%).
Ho Chi Minh City Development Commercial Bank (HDBank) saw its real estate loan balance increase from VND 68,292 billion to VND 83,125 billion; construction loans also increased to VND 60,626 billion. Military Commercial Bank (MB) had real estate business loans of VND 85,532 billion (up 38%) and construction loans of VND 35,918 billion. Loc Phat Commercial Bank (LPBank) achieved real estate loans of VND 10,196 billion and construction loans of VND 32,627 billion. Other banks such as Tien Phong Commercial Bank (TPBank), Vietnam International Commercial Bank (VIB), Asia Commercial Bank (ACB )... also had high real estate loan balances.
What should I pay attention to when taking out a loan?
In fact, many of the real estate loan packages offered by banks are actually very beneficial to borrowers, especially young people.
Mr. Ta Hoang Son (Trich Sai Street, Tay Ho Ward, Hanoi) said: "With a loan from Saigon - Hanoi Commercial Joint Stock Bank (SHB), plus our savings over the past few years, my wife and I have been able to buy a small apartment, with a total installment loan of about 1.5 billion VND. For me, the loan interest rate is quite manageable for many young couples like us..."
Like Mr. Ta Hoang Son, Ms. Nguyen Chau Anh (Duong Noi apartment complex, Hanoi) shared: "Currently, my family has borrowed about 2 billion VND from the bank, with an interest rate of 6% per year for the first year to buy an apartment. If we bought a new project, the interest rate might be 0% for the first year, but because this is an established area, we accepted borrowing at an interest rate of 6% per year. In my opinion, this interest rate is not high, and thanks to the loan, my family now owns our own apartment."
In fact, many banks have offered home loan packages for people under 35 with loan terms of 35-50 years, preferential interest rates commonly ranging from 3.99-9.99% per year depending on the loan progress and the fixed interest rate period, and a maximum loan value commonly around 70-90% of the house value. Many banks have implemented credit products with extended loan terms and reasonable interest rates to help borrowers stabilize their cash flow, thereby ensuring their ability to repay the debt.
According to a representative from Techcombank, the demand for housing 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 entering the market has not been sufficient, with a significant shortage in the mid-range and affordable housing segments. Therefore, the outlook for home loan credit remains strong in the coming period.
Analysts advise that before taking out a bank loan to buy a house, borrowers should start by saving and accumulating their own capital, following the principle of safe borrowing where the ratio of principal and interest payments does not exceed 40-50% of total income. Own capital is usually around 30% of the house value, but for safety, it should be at least 50%.
Lending interest rates are projected to increase slightly from now until the end of 2025 and the beginning of 2026. The State Bank of Vietnam raised the refinancing interest rate from 4.5%/year to 5%/year at the beginning of 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 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
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