As of the end of February 2025, about 10 commercial banks have implemented home loans programs targeting young customers.
In particular, some banks have competitive interest rate loan packages such as ACB with the "First House" package applying interest rates from 5.5%/year fixed for the first 5 years, with a maximum loan term of 30 years.
SHB Bank has launched a credit package of VND16,000 billion with preferential interest rates from 3.99%/year, loan terms up to 35 years and a maximum loan limit of 90% of the house value.
Large-scale banks such as BIDV, Vietcombank and VietinBank are also participating in the race.
BIDV applies a loan package with a minimum interest rate of 5.5%/year fixed for the first 12 months for loans of 60 months or more.
VietinBank maintains a fixed interest rate of 6 - 8.2%/year depending on the loan term, while Vietcombank applies a fixed rate of 5.5 - 5.7%/year for the first 6 - 12 months.
The fact that many banks have simultaneously implemented preferential credit packages has helped young workers realize their dream of owning a house. In fact, the low interest rate loan policy and a loan ratio of up to 80 - 90% of the house value is a great support, helping buyers only need to accumulate about 20% to own a house. However, it is noted that many people who want to buy a house are still hesitant because they are worried that after the preferential period, interest rates may fluctuate strongly.
Ms. Hong Ai, living in Thu Duc City, said that she is looking to buy an apartment. She has consulted the support interest rates of many banks. Although some places apply home loan interest rates from only 3.99%/year, the application period is very short, only a few months.
After the preferential period, banks apply floating interest rates, usually calculated by 12-month deposit interest rate plus margin of 3.5%. To borrow an old apartment worth about 2 billion VND for 20 years, after the interest rate incentives have expired, I have to spend about 20 million VND per month to pay the bank. This amount is still too large compared to my monthly income, said Ms. Hong Ai.
Another thing is the story of apartment prices being pushed up sharply in recent times, both new supply and old apartments, making home buyers have very few choices. Although supply has improved, housing prices are expected to continue to increase in the coming years. Therefore, for people with limited financial resources, adjusting the selection standards to be able to own a house that is suitable for their ability to pay is very important.
Currently, the market is mainly in the high-end segment with an average price of 70 - 100 million VND/m2, a 50m2 apartment costs about 3.5 - 4 billion VND. If borrowing 80% of the apartment value (equivalent to VND 2.8 billion) for 20 years, each year the buyer must pay about VND 140 million in principal and more than VND 150 million in interest (with an interest rate of 5.5%), a total of nearly VND 300 million/year, equivalent to VND 25 million/month. This is a very high payment level, especially when floating interest rates may increase in the future.
The real estate market is experiencing a serious imbalance between supply and demand, with a surplus of high-end housing products, large areas, high selling prices, while there is a shortage of social housing products and low-cost housing suitable for the needs of the majority of people.
If the market is mainly high-end apartments with low interest rates, it will be difficult to find borrowers. Therefore, in addition to interest rates, it is important to balance the supply in the market.
