Low interest rates benefit homebuyers

The recent decrease in interest rates by banks has not only stimulated credit growth but also supported the real estate market, boosting the demand for housing loans.

Banks compete to lower interest rates

Since the end of 2023, banks in Vietnam have been consistently reducing deposit interest rates, resulting in a significant drop in the rates for 12-month savings accounts. Short-term deposit rates below 2% annually have become more common, discouraging individuals from relying solely on savings accounts.

Meanwhile, mortgage interest rates have dropped to an average of 5-6% annually during the first two years, with variable rates ranging from 9-10% annually. The improvement in real estate demand has lessened the concern about interest rates.

Image: Demonstrative – Lower interest rates benefit homebuyers

Currently, state-owned banks such as Agribank, Vietcombank, VietinBank, and BIDV offer mortgage loans at rates ranging from 5-6%, slightly higher than foreign banks. Some private banks like BVBank, SHB, and ACB also participate in the race by offering low-interest home loans ranging from 5-8% annually, although the preferential interest rate periods tend to be shorter compared to foreign banks.

According to experts, low mortgage interest rates indicate that deposit interest rates are also low. With the current cheap money policy, inflation is expected to remain high. To cope with inflation, people tend to withdraw money from banks and invest it elsewhere. However, the stock market is currently unstable, and the price of gold has increased significantly. On the other hand, real estate prices have a downward trend while the demand for housing remains high. Therefore, when mortgage rates decrease, it stimulates the demand for home loans.

Batdongsan.com.vn, a real estate website, has recorded a significant increase in demand for various types of properties compared to the same period last year. In addition to apartments and houses, other products such as villas and townhouses have seen a 12-15% growth rate. The market is becoming vibrant, and prices continue to rise due to the increasing demand.

Image: Demonstrative – Increasing demand for housing loans

“Lending rates for homebuyers are low, so many people are rushing to buy houses. Compared to the end of 2023, the number of finalized transactions has significantly increased. Additionally, the disbursement process for customers is relatively easy, enabling buyers to quickly access funds,” said a representative from An Gia, a real estate company.

Furthermore, many developers are actively implementing measures to stimulate demand, preparing the supply for the market. These projects offer affordable prices, transparent legal status, and the option to live or rent out the properties immediately, which attracts potential buyers.

Developers actively stimulate demand

At present, interest rates are no longer a concern for homebuyers. The number of customers seeking real estate investment purposes is decreasing, while the majority of borrowers are driven by the need for accommodations.

Therefore, besides considering prices, companies are partnering with major banks to provide long-term loans and develop suitable sales policies to fully support homebuyers.

For example, at The Standard project in Tan Uyen, customers who need a mortgage payment can own the property with only a 10% initial payment and a total payment of 30% by the second quarter of 2025. The remaining amount can be financed by banks, and the developer offers a two-year interest-free period and principal deferral. Assuming a customer wants to buy a townhouse with a selling price of around 5.5 billion VND, they only need to pay approximately 550 million VND upfront.

Image: The Standard residential area in Tan Uyen

Ms. Hoai Diem, aged 45 and living in Tan Uyen, stated that the convincing factor for her family was the payment policy that allowed them to own the property immediately or use it for rental purposes, generating income.

“We plan to buy additional townhouses in The Standard residential area as a long-term investment for our children, either for renting or long-term investment due to the stable increase in land and property prices. Additionally, the project has an affordable price, completed infrastructure, and various facilities suitable for rental purposes,” Ms. Diem said.

Besides the 10% initial payment policy, the developer also guarantees rental returns for certain townhouses and shophouses, ranging from 25-40 million VND per month, with a lease term of up to 18 months. This policy provides opportunities for investors to own profitable properties without the initial financial burden.

According to An Gia, due to its unique product development and limited supply, The Standard residential area has attracted strong demand, both in the primary and secondary markets. Many buyers are searching for sustainable rental returns, targeting both local and foreign experts who have high demands for quality living spaces. Furthermore, this type of real estate has a high accumulation potential and is considered safe, ensuring price growth.

Located on Trinh Cong Son Street in Tan Uyen, The Standard residential area consists of approximately 374 townhouses and shophouses. The project benefits from its strategic location, being adjacent to VSIP 3 Industrial Park and future Belt Road 3 and Belt Road 4, making it convenient for residents to travel to cities, towns, commercial centers, and logistics warehouses.

The project has already completed the delivery of land use rights, home ownership certificates, and property assets (red books) to residents.

For more information about the project, please visit Business Today.