Over the last two years, commercial banks have run many promotion programs to help people buy houses amid of difficulties caused by Covid-19.

However, interest rates are no longer low as some commercial banks have raised home loan interest rates by 0.2-2 percent per annum.

Shinhan Bank, which had offered home loans with the most attractive interest rates, has raised its lending interest rates to at least 8 percent per annum. 

Its 12-month interest rate has risen from 6.2 percent to 8.2 percent per annum, and 36-month from 7.6 to 8.9 percent and 60-month from 7.8 to 9.5 percent.

UOB has raised its home loan interest rate from 6.49 percent to 7.69 percent. VIBBank has raised the interest rate by 0.2 percentage point compared with the last month to 8.7 percent. 

Meanwhile, Vietcombank has  announced an interest rate increase from 9.2 to 9.8 percent, fixed for the first three years.

The lowest home loan interest rate in the market, 4.99 percent per annum, is offered by Maritime Bank (MSB). However, the interest rate is only applied to more than 24-month loans and the borrowers buying houses from January 10, 2022 to December 31, 2022, which will be fixed for the first three months. The interest rate will be floating from the fourth month.

The bank offering the second lowest interest rate is PvcomBank. It offers preferential loans at an interest rate of 5 percent per annum for the first six months. After that period, borrowers have to pay 12 percent per annum.

Other banks are also offering loans at reasonable prices, such as TP Bank (5.9 percent per annum), VP Bank (5.9 percent), BIDV (6.2 percent), OCB (6.99 percent). Some foreign banks, including Woori Bank, Hong Leong Bank and Standard Chartered, are also lending money at good interest rates of 6.1-6.49 percent per annum.

Meanwhile, home buyers complain that it is more difficult to access bank loans.

Tran Nam Trung in Hanoi decided to borrow VND1.5 billion from a bank to buy an apartment in Ha Dong district with installment payments. The loan, disbursed in January 2021, had an interest rate of 5 percent in the first six months. Since July 2021, the interest rate has risen to 12 percent. 

Financial experts said home loan interest rate increases are inevitable as the economy is recovering after a long time of coping with Covid-19. 

When capital increases, banks have to pay more for deposits and then set higher lending interest rates.

Hanh Nguyen