Home loan interest rates unexpectedly drop sharply for young people under 35 years old

Many banks reduce interest rates for home loans

On July 28, VPBank announced a number of new incentives for people aged 18 to 35 who borrow to buy a house. Accordingly, the bank offers a fixed interest rate of 6.1%/year for the first 12 months instead of only 3 months as before. In addition, borrowers are also granted a principal grace period of up to 24 months, a loan term of up to 35 years and a maximum disbursement limit of 80% of the property value. The program is applied in Hanoi, Da Nang and Ho Chi Minh City.

On the same day, Vietcombank also announced a reduction in home loan interest rates for people under 35 years old. Mr. Quoc Ngoc (living in Ho Chi Minh City) said he had just borrowed 1.5 billion VND from Vietcombank with a fixed interest rate of 5.5%/year for 3 years, then applied a floating interest rate of 9%/year. Now, the bank continues to reduce the interest rate by 0.3 percentage points, to 5.2%/year. According to Mr. Ngoc, this is a practical policy to help young people easily access capital to buy a house.

According to records, many other commercial banks such as Agribank, BIDV, SHB, ACB, Sacombank... also launched preferential home loan packages for young people in the context of the recent sharp increase in real estate credit in this segment.

Lãi suất cho vay mua nhà có diễn biến bất ngờ- Ảnh 2. — Many commercial banks are launching preferential home loan packages for young people.

A representative of Shinhan Bank Vietnam said that in just over the past two months, the bank has disbursed nearly VND90 billion to about 50 customers under 35 years old for home loans. The fixed interest rate ranges from 4.5%/year for the first 6 months or 6.9%/year fixed for 36 months, with an additional discount of 0.3% if the borrower is young.

Why do home loan interest rates keep falling?

According to data from the State Bank of Vietnam, the average lending interest rate is currently at 6.23%/year, down 0.7 percentage points compared to the end of last year. Notably, from July 1 to the end of 2025, the lending interest rate for people under 35 years old buying social housing will be adjusted down to 5.9%/year, 0.2 percentage points lower than the previous period.

Notably, the trend of decreasing loan interest rates is taking place in parallel with many banks slightly increasing deposit interest rates for short terms since the beginning of July.

According to Mr. Nguyen The Minh, Director of Personal Analysis at Yuanta Vietnam Securities Company, the increase in deposit interest rates reflects the increasing demand for credit capital. However, loan interest rates will remain low to support economic growth according to the Government's management orientation.