Buzz
For a long time, getting a bank loan to buy a house has been a viable financial solution that many people choose to realize their dream of owning their own home. However, amidst numerous options for loan packages, loan terms, and different banks offering loans, most people are unsure whether they should borrow money from a bank to buy a house. Which bank offers the lowest interest rates for home loans? Fortunately, you will quickly find the answer in the article below by Mytour.
Should you finance a house purchase through a bank loan? List of banks offering the best home loan interest rates.
Benefits of the project:
- Ensures legal safety and feasibility of the housing project. Helps you swiftly acquire your dream home and utilize its value.
Risks involved:
- Interest rates for loans at banks are only favored for a certain period (6 months - 3 years). After the preferential period ends, loan interest rates will be adjusted upwards based on the basic lending rates at banks. This poses issues for borrowers who lack financial capability to repay. Loan procedures and conditions at banks are quite complex. Most banks will approve loan applications based on collateral value, loan duration, and customer repayment capability. In case of early repayment of bank loans for house purchase, you will incur prepayment penalties. Many individuals borrowing bank loans to buy houses lack financial planning skills and fail to devise contingency plans for unforeseen circumstances such as unemployment, divorce, or the death of a spouse, affecting the bank loan repayment process in the future.
Is it worth it to get a bank loan to buy a house? Pros/cons of getting a bank loan to buy a house.
2. Some considerations when getting a bank loan to buy a house
After thoroughly considering various financial options and solutions for purchasing a house, if you still decide to get a bank loan to buy a house, there are some points to keep in mind:
- Choose a house that suits your conditions, usage needs, and personal financial capabilities. At a minimum, when deciding to buy a house, you should have savings equivalent to 1/3 of the house value. It's even better if the amount you have is equivalent to 1/2 of the house value.
- Before applying for a home loan at any bank, you need to consider your ability to repay the monthly debt based on your income and personal/family expenses.
- Before deciding to borrow money from any bank, make sure you understand the conditions, loan procedures, interest rates, loan duration, maturity dates, etc., and establish a financial plan, identify potential risks, and necessary contingency plans.
3. Banks offering low-interest home loans
According to experts, the key to securing low-interest home loans is to hunt for 'special offer' home loan packages from banks.
Surveying the home loan packages offered by banks reveals that, to facilitate quick homeownership, many banks have introduced home loan packages with preferential interest rates (starting from 5.9% per annum), flexible loan terms, ranging from 3 months to 20 years. Moreover, interest rates for home installment loans at banks are also adjusted downwards over the first 6 months to 3 years to ease repayment pressure for customers.
To learn more about low-interest bank loans, flexible loan terms, please refer to the summary table below:
Summary table of preferential loan interest rates at various banks.
Based on the data in the table above, we observe:
- The interest rates for home loans at state-owned banks such as Vietinbank, Vietcombank, and Agribank range from 8% per annum to 9.2% per annum for preferential loan periods from 12 months to 36 months.
- At BIDV bank, the preferential home loan interest rate is 7.8% per annum for a 12-month period and 8.8% per annum for a preferential period of 24 months.
- At TPBank and LienVietPostbank, the preferential bank interest rate is applied for the first 6 months at 6.9% per annum and 10.25% per annum, respectively. The post-preferential interest rate will be adjusted according to the basic interest rate +% interest rate as regulated by each bank.
- Notably among the home loan packages, we must mention two foreign banks, Shinhan Bank and Standard Chartered. Specifically, Shinhan Bank offers preferential loan packages with interest rates of 6.9% per annum, 7.7% per annum, and 8.8% per annum for periods of 12 months, 24 months, and 36 months, respectively. With Standard Chartered bank, the home loan interest rates have a high differential ratio at 6.49% per annum (for a preferential period of 12 months), 8% per annum (for a preferential period of 24 months), and 9% per annum (for a preferential period of 36 months).
Therefore, if you need a home loan, you can consider preferential home loan offers at both domestic and foreign banks such as Vietinbank, Vietcombank, Agribank, BIDV, Shinhan Bank, and Standard Chartered, among others.
Important Note:
- The table of home loan interest rates from the banks above was compiled by Mytour in T7/2020. Actual bank loan interest rates may be adjusted up or down at certain times. For details on current bank loan interest rates, please contact the bank hotline or visit the nearest bank branches/offices for consultation and support.
- After determining the desired loan amount, you need to understand how banks calculate installment loan interest to estimate the loan period and monthly payments corresponding to the loan term. If you're unsure how to calculate the interest rate for your loan amount and specific loan term, you can find answers in our article on interest rates for a 500 million VND home loan at banks.
Above, Mytour has shared useful advice for answering the question of whether to get a bank loan to buy a house or whether to get a bank loan for installment payments on a house. We hope the information in this article will help you address any questions, concerns, and make the most financially sound decisions for yourself.
In addition to exploring home loan interest rates, you can also consider interest rates for car loans, business loans, construction loans, home improvement loans,..., in the content of the article which bank should you borrow from for low interest rates shared by Mytour earlier.
