Specifically, according to the latest listing of home loan interest rates in February 2024, the Joint Stock Commercial Bank for Industry and Trade of Vietnam (BVBank) currently has a low home loan interest rate of 5%/year, unchanged from the previous month. However, after the preferential period ends, the interest rate will increase by 2%/year.

Behind BVBank is Vietnam Prosperity Joint Stock Commercial Bank (VPBank) with 5.9%/year, also unchanged compared to January 2024.

Next are the Bank for Investment and Development of Vietnam (BIVD) and UOB Bank with 6%/year. Of which, the interest rate at UOB remains unchanged compared to January, while at BIDV, the interest rate has dropped sharply from 6.5% to 6%/year.

Also having a fairly low home loan interest rate is the Global Petroleum Bank (GPBank) with 6.25%/year. The Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) is in fourth place with 6.4%/year.

Meanwhile, 6.5%/year to 7%/year is the interest rate applied by many banks such as: Saigon Joint Stock Commercial Bank for Industry and Trade (Sacombank) with 6.5%/year, Vietnam International Commercial Joint Stock Bank (VIB) with 6.5%/year, Shinhan Bank with 6.6%/year, Vietnam Joint Stock Commercial Bank for Foreign Trade (Vietcombank) with 6.7%/year...

On the other hand, Vietnam Technological and Commercial Joint Stock Bank (Techcombank) is a rare unit with a home loan interest rate of over 10%/year at 10.5%/year. After the preferential period, the floating rate is 3%.

Following Techcombank in the list of banks with the highest home loan interest rates include HSBC with 9.75%/year, Southeast Asia Commercial Joint Stock Bank (SeaBank) with 9.29%/year, Vietnam Export Import Commercial Joint Stock Bank (Eximbank) with 8.5%/year...

In early February 2024, banks were quite quiet in adjusting home loan interest rates. Apart from BIDV, most of the remaining units kept their listed rates unchanged.

It can be seen that recently, following the direction of the State Bank, many commercial banks have continuously reduced deposit interest rates to support consumer lending and limit the excess of money in banks.

Currently, after many adjustments, interest rates at many banks have dropped to a record low, fluctuating around 5%/year for terms of 12 months or more, lower than the interest rates during the COVID-19 pandemic.

The reduction in deposit interest rates is expected to stimulate the flow of money from the population into real estate, a more attractive investment channel than bank savings. However, new data recently released by the State Bank shows that the flow of money has not yet returned to the real estate market, especially for high-value products.

According to the Vietnam Association of Realtors (VARS), the transaction volume in the market is mainly focused on products priced under VND3 billion from customers with cash available. In contrast, high-value investment products are still in stock due to complicated and strict lending mechanisms and conditions, making many people reluctant to invest in high-value real estate.

In addition, the gap between deposit and loan interest rates remains high, making many people worried about borrowing capital due to the possibility of interest rates rising again. Even after Circular 06/2023/TT-NHNN reduced interest rates, borrowing procedures are still complicated and the costs are high, making many people hesitant.

“ To stimulate and restore investment, lending rates need to be reduced by about 2% per year and there needs to be more flexible conditions and procedures ,” Vars emphasized.

Chau Anh