Vietnamese banks are in fierce competition to attract young homebuyers by offering historically low mortgage rates, flexible repayment plans, and extended loan terms. Some packages now feature interest rates starting at just 3.6% per year, significantly reducing the financial burden on first-time buyers.

At a recent meeting with commercial banks, Prime Minister Pham Minh Chinh directed the State Bank of Vietnam (SBV) to introduce new preferential loan programs to support both housing supply and demand, particularly for buyers under 35. The move aims to stimulate the real estate market and improve access to affordable housing.

As a result, the SBV has instructed financial institutions to stabilize deposit interest rates and further lower lending rates. Since the central bank’s February 25 meeting with commercial banks, 16 banks have reduced deposit rates by 0.1-0.8% annually across various term lengths, paving the way for cheaper loans.

Banks roll out competitive mortgage packages

Several banks have responded with attractive home loan programs, including:

Asia Commercial Bank (ACB): Launched the "First Home" program for customers aged 18-35, offering mortgage rates from 5.5% per year with loan terms of up to 30 years.

LPBank: Introduced the "Settle Easily, Secure Future" package, allowing young buyers to borrow for home purchases, construction, or renovation at an interest rate starting at 3.88% per year, with repayment terms extending up to 35 years.

HDBank: Announced a VND 30 trillion ($1.2 billion) credit package targeted at young buyers in 24 major cities, featuring interest rates from 4.5% per year, repayment terms up to 50 years, and a five-year principal grace period.

SHB: Unveiled a VND 16 trillion ($640 million) loan program for young homebuyers, offering rates from 3.99% per year and up to 60 months of principal-free payments.

These programs, available until December 31, 2025, allow borrowers to secure up to 90% of their home’s value with no limit on the loan amount.

Ultra-low mortgage rates and flexible repayment options

Eximbank: Launched the "Stable Home, Secure Future" Y-Rise program with rates starting at 3.68% per year for the first 36 months.

Borrowers aged 22-35 enjoy fee-free early repayment from the fifth year onwards. 
Loan amounts can cover 100% of the home’s value.
Maximum repayment term: 40 years.
Principal grace period: Up to 7 years.

According to Eximbank’s Retail Banking Director, Luong Nguyen Minh Dang, "A VND 1 billion ($40,000) loan requires monthly payments of just VND 6-7.5 million ($240-$300). For a VND 3 billion ($120,000) home, payments range from VND 20-22 million ($800-$880) per month, while a VND 5 billion ($200,000) property can be financed without upfront capital, with monthly payments of VND 30-35 million ($1,200-$1,400)."

TPBank: Recently introduced a mortgage package with interest rates as low as 3.6% per year and loan amounts covering up to 100% of the home’s cost. 

Maximum loan term: 35 years.
Principal grace period: 5 years, with an option to pay only 5% of the principal during this period.
Open to customers under 35 years old.

These aggressive rate cuts demonstrate banks’ commitment to following the government’s directive to lower borrowing costs and stimulate homeownership.

The introduction of low-interest mortgage programs provides young buyers with unprecedented financial flexibility. These initiatives allow first-time homeowners to secure long-term, affordable financing with reduced initial payments, making it easier to step onto the property ladder without excessive financial strain.

Experts believe this wave of mortgage incentives will not only make homeownership more accessible but also boost Vietnam’s real estate market by increasing demand for housing, particularly in urban centers.

Tuan Nguyen