Major banks are no longer offering mortgages at concessional interest rates of below 6% and have hiked them to around 7%.
Hong Van, 30, who wants to buy a home in HCMC, was informed recently that state-owned banks have discontinued a low-interest mortgage program she had been eyeing.
Apartment buildings in HCMC in July 2025. Photo by Read/Quynh Tran |
BIDV, Vietcombank, VietinBank, and Agribank, the country’s four public banks, were offering loans at around 5.5% for three years since the first quarter following a government call to subsidize mortgages for young people looking to buy homes amid surging prices.
The 5.5% interest has been the most attractive in many years.
But Minh Tung, a credit officer at BIDV in HCMC, said the bank has called off the program because it was losing money, and is now offering at interest rates of 6-6.8% for a period of six to 18 months.
A VietinBank credit officer too said the lender has ended its 5.6% three-year program and replaced it with mortgages at 7.5% for 18 months.
Agribank announced the suspension of the concessional program in late October.
Some bank executives had earlier signaled an increase in lending rates, saying credit has been growing faster than deposits.
As of Oct. 30 banking credit growth for the year was 15%, and it is expected to rise to 20% for the full year, the highest in years.
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