Since the SBV started to lower the interest rate early this year, many banks have also lowered their lending rates, fueling the real estate market.
Berriver Long Bien Project
BIDV set their annual interest rate at 16%, with maximum term of 15 years on loans customers who buy homes in the My Dinh urban area, while MB Bank has been loaning at 15% per year terms of 10-20 years.
When the governor of SBV lowered the deposit interest rate to 9% on June 11, the lending interest rate dropped to 12%.
Many banks include SeaBank, BIDV, VP Bank, Tienphong Bank saw this as a positive move and lowered their lending interest rates for cars and homes to 12-13% per year.
SeaBank announced that they will give lend at the rate of 11.99% for customers who purchase at the Berriver apartment project in Long Bien District, Hanoi with terms of up to 20 years. The bank said since the complex is only three kilometres from Hoan Kiem Lake, prices are reasonable and the project itself is viable.
A representative of SBV confirmed that they intend to keep interest rates stable throughout the year. Many experts have said this will be a positive change for the real estate market, adding that since enterprises can not only borrow and restructure their debts more easily, but also win back the confidence of retail customers and investors.
The former Deputy Minister of Natural Resources and Environment said 50% of the real estate investors will be able to access credit as a result of looser bank policies.
Lower interest rates and preferential loans for early buyers also tend to attract customers, they said.
Stephen Wyatt, CEO of Knight Frank Real Estate Agent said that the number of customers has increased since the interest rate cuts.
Lowered interest rates attract investors and customers