Compare the latest mortgage interest rates of banks

Before taking out a mortgage, customers should compare interest rates from banks to make the best choice. Below are mortgage interest rates from some banks:

At BIDV , the specific mortgage interest rate depends on the loan package and the purpose of the loan, mortgaged through collateral such as red book, pink book. If borrowing to buy a house, customers can borrow for a term of up to 20 years, with a preferential interest rate of 7.3% in the first 6 months. After the preferential period, the interest rate is floating, calculated based on the 12-month savings interest rate + a margin of 4%.

At Vietcombank , customers borrowing to buy real estate can borrow up to 70% of the value of the collateral with preferential interest rates of 7.7%/year in the first 12 months and 8.7%/year in the first 24 months.

At Vietinbank , the loan interest rate is about 8.6%/year. When borrowing to buy a house, customers can borrow for a term of 5 - 20 years.

At Agribank, from January 1, 2024, the bank adjusted the interest rate policy for medium-term and long-term loans for production and business activities, loans for living needs with a fixed interest rate of only 7.0%/year, the applicable period was extended from 12 months to 24 months. At the same time, the floor interest rate for medium-term and long-term loans for the real estate business sector was adjusted down by 0.5%/year.

At VPBank, home loan customers receive an interest rate of 6.90%, and car loan installments are 7.49%.

Note, specific interest rates depend on each bank, loan purpose and loan period.

The most accurate way to calculate bank loan interest rates

The way to calculate mortgage interest depends on the interest calculation method that the bank applies. Currently, the common method of calculating mortgage interest of banks is to pay principal and interest monthly. The calculation is as follows:

Total monthly payment = Monthly interest payment + Total monthly principal payment.

In there:

Monthly Principal = Initial Loan Amount ÷ Number of Loan Months

First month's interest = Initial loan amount x Monthly interest rate

2nd month interest = (Initial loan amount - Principal paid) x Monthly interest rate

Similarly, from the 3rd month onwards, interest will be calculated on the remaining balance.

How to choose the most beneficial bank loan term?

To choose the most beneficial bank loan term, customers need to consider the following factors:

Financial capacity: It is necessary to consider the financial capacity to ensure that the loan can be paid on time. If the financial capacity is limited, it is advisable to choose a shorter loan term to reduce the amount of interest payable.

Loan purpose : Customers need to determine the loan purpose to choose the appropriate loan term. If the loan purpose is for shopping or consumption, a shorter loan term should be chosen. If the loan purpose is for investment, customers can choose a longer loan term to have time to repay the debt.

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