Following the PM’s directive at a February 11 conference with commercial banks, (see Page 16), Asia Commercial Joint Stock Bank (ACB) launched the first home loan package for young individuals aged 18-35 with stable jobs and also a regular monthly income, starting from February 13.

Lenders support dreams of homeownership for youth, Source: freepik.com

The loan offers a tenure of up to 30 years, and a preferential rate starting at 5.5 per cent for the first three months. After the initial three months, the interest rate is determined based on the base rate plus a margin of 3.5 per cent.

Borrowers can also choose fixed interest rate packages ranging from 12 to 60 months, with rates varying from 6.5-8.7 per cent per annum..

“For young individuals with stable employment and a long working horizon, the risk associated with these loans is relatively low. Moreover, the first home loan package can also be considered a financial solution to ensure stable housing, facilitate career development, and improve quality of life,” said an ACB representative.

After launching a credit support programme for young homebuyers, ACB is taking the lead in partnering with real estate developers to finance mid-range housing projects, making it easier for young people to own their first home.

“ACB will work alongside real estate developers to increase the supply of mid-range housing by providing funding for reasonably priced projects, along with dual credit packages that support both investors and homebuyers,” said chairman Tran Hung Huy. “A comprehensive partnership between the bank and major real estate corporations ensures construction progress and price control, enabling young people to achieve homeownership more easily.”

Commenting on the preferential home loan policy for individuals under 35, Tran Manh Hoang Viet, financial planner at wealth management firm FIDT, argued that reduced interest rates alone were insufficient.

“For the policy to be truly effective, the loan process must be simple and transparent, minimising procedural barriers that hinder accessibility. Additionally, the quality of affordable housing must be controlled to ensure buyers are not exposed to legal or construction risks. Simultaneously, a flexible financial support mechanism should be in place for borrowers facing temporary difficulties, preventing an increase in bad debt or defaults,” he added.

PVcomBank is currently offering a real estate loan package with an interest rate starting at 3.99 per cent per annum for the first three months. The loan term extends up to 35 years, featuring a flexible repayment plan tailored to borrowers’ financial capacity.

The bank also provides a principal repayment grace period of up to 36 months, a maximum loan limit of $2 million, and a maximum loan-to-value ratio of 85 per cent. For borrowers opting for a fixed interest rate, the rate is 6.2 per cent for 12 months and 6.99 per cent for 18 months.

SHB has also introduced an interest rate ranging from 6.2-9.5 per cent per annum, with a post-incentive margin of 3.0-3.9 per cent per year, depending on the lending package and customer’s credit rating.

Several banks are offering extended loan terms of up to 35 years, with a maximum principal repayment grace period of five years. Borrowers can schedule repayments flexibly, choosing from options such as equal principal payments, step-up principal payments, or payments aligned with their cash flow on a monthly, quarterly, or semi-annual basis.

At ABBANK, home loans are available for up to 35 years. Under its latest preferential credit programme, customers can secure a home loan with an interest rate starting from 7.3 per cent per annum.

“With a simplified loan process and ultra-fast approval within just five hours, covering up to all the financing needs, customers can secure their dream home without financial worries,” said an ABBANK representative.

Meanwhile, some other major lenders have stated that they are awaiting specific guidance regarding the scale and interest rates of the new loan package for young first-time buyers.

On February 12, the Ho Chi Minh City Real Estate Association submitted a proposal to the prime minister and the Ministry of Construction, recommending a mechanism allowing young individuals aged 18-45 to purchase their first home with an interest rate of 6-7 per cent per annum, secured by the purchased property, over a 10-15 year term.

Hoang Tien Dat, a clerk at Techcombank, noted that the primary concern when taking a home loan is financial planning.

“Financial leverage is only suitable within a 5-7 year timeframe because extending beyond this period results in a substantial total expenditure. Moreover, once the low fixed-rate period ends, the interest rate becomes variable, aligning with market rates,” Dat said. “This floating interest rate can escalate to 9-10 per cent, imposing a significant financial burden. Youngsters tend to sell houses after a few years due to overwhelming financial pressures.”

Pham Duc Toan, CEO of EZ Property, suggested that an appropriate interest rate for young homebuyers would be around 5.5 per cent per annum, as at this rate, a young family would only need to pay $280-320 per month in both principal and interest.

“If banks nationwide implement preferential home loan packages for individuals under 35, it would provide significant social security benefits for young people struggling to secure stable housing. This group represents the core workforce, and prioritising their housing needs would allow them to focus on their careers and contribute effectively,” added Toan.

Phi Duc Anh, tour guide I am considering a mortgage to purchase my first home. I have been saving for several years, but with rising property prices, it is nearly impossible to buy a house outright. A bank loan would allow me to secure a home now, rather than waiting many more years to accumulate enough funds. My main concern is ensuring that the monthly repayments remain manageable while still allowing me to maintain my current lifestyle and savings. I am also looking at various mortgage packages to compare interest rates, repayment terms, and fees. Given the current market conditions, a well-structured loan is almost essential for young professionals like myself who wish to own property rather than continue renting indefinitely. It could be a good opportunity, but it depends on an individual’s financial situation. Tran Luu Ly, lecturer, Thuy Loi University Currently, I am not planning to take out a loan for a home, but it is something I have been thinking about for the near future. While owning a home is an important goal for me, I want to be certain I can comfortably afford both the down payment and the monthly instalments. Additionally, I am closely monitoring the real estate market to see whether conditions become more favourable for buyers in the coming years. It really depends on one’s financial readiness. While it is true that property values tend to rise over time, taking on a mortgage too early could put unnecessary financial strain on young buyers. Some people might be better off waiting a few more years to strengthen their financial position rather than rushing into a commitment that could become difficult to manage. Ngo Nhat Linh, legal consultant Several banks like Vietcombank, BIDV, Techcombank, and MBBank have introduced home loan schemes with low interest rates applicable for an initial period ranging from six months to two years, after which the rates are subject to increase. These packages present a noteworthy opportunity. However, it is crucial to evaluate both the potential benefits and associated risks when assessing a loan. For instance, if one possesses a stable income and a clear financial plan, this could represent a prudent step towards securing long-term housing, rather than perpetually renting a property. Nevertheless, such an opportunity is only advantageous if the prospective buyer is well-prepared financially, with savings amounting to at least one-third of the property’s value and a stable income. Ngo Quoc Viet, freelance real estate agent The current preferential policies represent a promising opportunity for young individuals seeking to acquire their first home. Following a period of stagnation in the real estate market, property prices have now adjusted to more reasonable levels, while banks are introducing a variety of incentives to stimulate demand. For those who have accumulated an initial sum of savings, coupled with a stable income, this is a favourable chance to establish long-term residence. The home loan packages are highly attractive, with a 30-year repayment term helping to alleviate the burden of monthly debt obligations. Furthermore, the fixed interest rate of 5.5 per cent for the first three months is relatively competitive compared to the prevailing market rates. Ta Hoai Thuong, marketing specialist, Shopee Given the current preferential policies, this is perceived as a relatively suitable time for young individuals who have accumulated some capital. Although property prices, whether for land or apartments in the city centre, remain high, it appears that Hanoi will have numerous new apartment buildings this year. Should additional bank loan packages with preferential interest rates become available, it would represent an excellent opportunity for my family to acquire our first house. The loan scheme is particularly appealing, especially with its extended repayment term of up to 30 years, which would alleviate the pressure of monthly repayments. The fixed preferential interest rate during the initial five-year period provides borrowers with a greater sense of security, particularly for those whose situation is not entirely comfortable.