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However, before borrowing, you need to carefully calculate the costs you will have to repay for your 500 million loan at the bank, considering various loan limits, different loan periods, and assessing your family's total income to plan the loan, find the best loan package, and the best loan period for yourself.
Credit score is the main factor affecting the approval of loan applications, the benefits of home loans from banks. If your credit score is high, your chances of being approved for a loan with your low interest rate will be higher and vice versa.
2. Interest rates for home loans at Vietnamese banks
Currently, Vietnamese banks offer many home loan packages with different preferential periods for customers. On average, bank interest rates when borrowing 500 million to buy a house before preferential treatment range from 7.7% - 11% per year, and interest rates after preferential treatment are around 10.5% - 21% per year depending on the bank.
Specifically, the interest rates for home loans at popular banks are as follows:
- BIDV's home loan interest rates range from 7.7% - 8.8% per year for the first 12 - 24 months, and the post-preferential rate is 10.5% per year.
- Vietcombank's home loan interest rates during the preferential period range from 8.1% - 12.2% per year.
- TPbank's average home loan interest rates range from 8.2% - 9.2% per year.
- Techcombank's home loan interest rates during the preferential period range from 7.99% - 8.29% per year.
- Vietinbank's home loan interest rates range from 7.7% - 8.62% per year depending on the loan term. After preferential treatment, an additional 3% - 4% per year will be added according to the bank's regulations.
Among the mentioned banks, those with many preferential home loan interest rates, widely chosen by individuals for borrowing money, include BIDV, UOB, EximBank, Techcombank, TPBank,...
Summary table of bank home loan interest rates of 500 million for buying a house in Vietnam
For detailed information about loan packages, home loan interest rates at banks, readers can explore the article sharing table of home loan interest rates at banks by Mytour.
3. How much interest do you have to pay each month for a 500 million home loan
Currently, banks are offering installment home loan packages with interest calculated on a reducing balance basis.
Specifically, the formula, how banks calculate interest based on reducing balance is:
- Monthly Principal Repayment = Loan Amount / Number of Months Loaned
- First Month Interest = Loan Amount * Loan Interest Rate
- Subsequent Months' Interest = Remaining Principal Amount * Loan Interest Rate
Example, for a bank loan of 500 million to buy a house, choosing BIDV bank's home loan package, with a preferential interest rate of 8.8% per year for the first 2 years, post-preferential interest rate of 10.5% per year, and a loan term of 3 years, then:
Amount to be paid in the first two years
- Total principal + interest to be paid in the first month is: 17,555,556 dong
- Total principal + interest for the second month is: 17,453,704 dong
Details of repayment terms, interest rates for a 500 million home loan, and the monthly payment amount for a 500 million loan at BIDV bank for the first two years have been compiled by Mytour in the table below
Interest rates for a 500 million home loan, and the monthly payment amount for BIDV bank for the first two years (preferential interest rate of 8.8% per year)
Starting from the third year, the loan interest rate increases to 10.5% per year, the remaining principal amount unpaid is 166,666,667 dong, with 12 months left to repay the loan. At this point, the total principal + interest you need to pay to the bank is:
Amount to be paid in the month for a 500 million home loan at BIDV bank
Amount to be paid for a 500 million home loan at BIDV bank in the final year (interest rate 10.5% per year)
Based on the illustrative example table on how to calculate installment home loan interest above, surely you have somewhat estimated the monthly payment amount for your home loan.
To find the best bank loan option of 500 million for buying a house, suitable for personal financial conditions without struggling to repay interest or being forced to sell the house to pay off the bank debt, Mytour offers some advice as follows:
- When borrowing 500 million to buy a house in installments at banks, the loan term will be the main factor affecting your monthly payment amount. If you have unstable income, choose a longer loan term to reduce the pressure of monthly repayment and prepare contingency plans to deal with potential risks.
- In addition to borrowing to buy a house at the bank, try to take advantage of low-interest loans from relatives, family members to reduce the pressure of debt repayment.
Here, Mytour has introduced detailed bank loan interest rates when borrowing 500 million to buy a house and illustrative examples for readers' easy understanding. Hopefully, the information in this article is helpful to you, helping you find the best 500 million bank loan solution for yourself. Also, you should keep an eye on bank interest rates to be able to save and spend money appropriately. Wishing you success.
