Preferential interest rates promote housing demand

In recent times, the young people (under 35 years old) have been given many opportunities to access home buying opportunities with preferential credit packages from banks. In particular, the home loan interest rate for young people (under 35 years old) in the first 5 years from the first disbursement date is 2%/year lower than the average medium and long-term loan interest rate in VND of 4 state-owned commercial banks including: Agribank , BIDV, Vietcombank and VietinBank.

In the next 10 years of borrowing, the interest rate is determined to be 1% lower per year than the average medium and long-term lending rate of the four banks mentioned above. Experts assess this as a driving force to both stimulate consumption and nurture a potential long-term customer segment for the banking system.

With the savings she had after more than 6 years of graduating and working, Ms. Nguyen Thi Hang decided to borrow more from the bank to buy a small apartment in the capital.

"I decided to buy a house at this time because the current market is showing signs of stabilizing, house prices are starting to decrease and current loan interest rates are also very favorable," said Ms. Nguyen Thi Hang - Van Mieu - Quoc Tu Giam ward, Hanoi .

According to the State Bank's report, as of the end of August, real estate credit had reached more than 4 million billion VND, an increase of about 19% over the same period last year. One of the factors contributing to the growth of credit capital flow for real estate is the decrease and more stable interest rate for home loans, promoting increased demand for home loans.

According to experts, the trend of banks stimulating credit demand for home purchases, especially for young people, shows that credit institutions are shifting capital flows in a more sustainable direction, both promoting the market and linking with the real housing needs of the majority of the population.

Ms. Pham Thi Mien - Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute said: "We must increase the supply, the supply must have a selling price suitable for people with average income. Only when there is a supply, the opportunity to reach customers who borrow to buy real estate is realistic. But now we see that in recent times, most of the products are aimed mainly at the investment customer group."

When real estate credit is selective and linked to real housing needs, the market can recover sustainably, while the banking system can still maintain the necessary stability.

Source: https://vtv.vn/lai-suat-uu-dai-thuc-day-nhu-cau-an-cu-100251014172553911.htm