Home loan interest rates in Vietnam are continuing to rise, as many banks have increased their fixed rates for 12-month loans to above 10% per year. According to statistics from DKRA Consulting, in August, the interest rate for home loans with a fixed term of 12-24 months at 11 popular commercial banks averaged 10.9% per year. Some banks have set even higher rates, such as VPBank at 13.2% for a 12-month fixed loan, while MSB and ACB offer rates around 11%. VIB's rates are at 11.1% for a 12-month term and 12% for 24 months.

Conversely, only a few banks maintain fixed rates below 10% for 12 months, including HDBank at 9.8%, VietBank at 9.5%, and Woori Bank at 9.3%. This current level is significantly higher than in the second quarter, when a survey by the Vietnam Real Estate Market Research Institute (VARS-IRE) indicated that borrowers could access promotional loans for 12 months at rates between 8.5% and 9.2% per year.

Data from Dat Xanh Services shows that compared to the second quarter, the average promotional rate for 12-month loans at eight banks surveyed increased by approximately 0.6 percentage points in the third quarter and nearly 1 percentage point since the beginning of the year. Specifically, among state-owned banks, Agribank saw the most significant increase, with its fixed rate for the first year rising from 8.2% (in the second quarter) to 9.5% per year. BIDV remained stable at 10.8%, while Vietcombank slightly increased from 9.8% to 9.9%. VietinBank maintained its rate at 10% after previously increasing it to 10.5% in May.

In the private commercial bank sector, many banks such as Sacombank, TPBank, and SeABank are listing promotional rates for fixed loans of 12-18 months at around 11-13% per year, increasing fixed loan rates by an additional 0.8 to 1.1 percentage points. Foreign banks have also seen significant adjustments, with Standard Chartered raising its promotional loan rate from 7.5% to 9.8% per year, an increase of 2.3 percentage points. Hong Leong Bank increased its rate from 8.9% to 10.5%, an increase of 1.6 percentage points, while Shinhan Bank also raised its 12-month fixed rate to around 10%.

This trend indicates that the cost of borrowing for home purchases is gradually moving away from its previously low levels. Promotional fixed rates below 10% per year, once considered the norm, are becoming increasingly scarce. Instead, many banks have raised their promotional loan packages to between 10-13% per year, resulting in higher costs for leveraging home purchases.

However, the actual interest rate that customers receive may differ from the listed rates, depending on credit profiles, loan-to-value ratios, collateral, and the policies of individual banks. Borrowers purchasing real estate in projects linked to the bank may benefit from lower interest rates. Some loans may also incur additional costs for loan insurance or property insurance. According to DKRA Consulting, the cost of loan or life insurance at several banks typically ranges from 0.5% to 1% of the loan value, depending on the profile. Borrowers may also incur fire insurance costs for the mortgaged property.

In light of rising promotional interest rates at many banks, experts suggest that buyers need to calculate the total borrowing costs, including interest rates and related fees, to proactively manage their finances throughout the loan period. Additionally, promotional interest rates apply only for a limited time, after which the loan typically shifts to a floating interest rate, which can rise to 12-16% per year depending on the bank and calculation method.

The increase in interest rates amid high housing prices complicates financial planning for buyers relying on loans. A consumer sentiment report from PropertyGuru indicates that over 80% of home buyers and investors are only willing to borrow when interest rates are below 9% per year, with most considering a suitable rate to be between 5-9%. When rates exceed 11%, many tend to limit their use of leverage. Therefore, home buyers need to assess their repayment capabilities based on both the post-promotional interest rate and the initial borrowing costs.