Strong incentives for home loans

Many banks continue to adjust their home loan interest rates. Accordingly, since the beginning of March, a series of banks have lowered their preferential home loan interest rates by 0.3-2% per year.

Commercial banks reduced preferential interest rates for home loans by 2 percentage points, from 11.5%/year to 9.5%/year.

Illustration photo. Source Internet

Some foreign banks also joined the race to reduce preferential interest rates for home loans, sharply reducing 2.21 percentage points for home loans, from 8.7% to 6.49%... These banks already had low preferential interest rates, after the adjustment, the interest rates at these banks became even more attractive.

Although home loan interest rates vary from bank to bank, according to experts, due to slow credit growth and limited output for production and business loans, banks are focusing on home and car loans. Therefore, most banks are lowering loan interest rates to attract customers.

However, this is only the initial preferential interest rate, after that banks will float it, calculating based on the average mobilization interest rate plus 4-5% or even 7%. This can cause interest rates to skyrocket. This is what makes it difficult for home buyers to choose a place with a long-term commitment to feel secure when borrowing money to buy a house.

Notes when borrowing to buy a house

Many experts say that home loan interest rates are at their lowest level in many years, so this is an opportunity for many people to own their dream home.

However, when buying a house, it is necessary to carefully calculate the value of the house and the amount of money needed to borrow. Customers need to calculate their financial capacity and debt repayment ability to choose the appropriate loan amount. The larger the loan amount, the higher the total interest to be paid to the bank. Therefore, customers should choose a suitable home loan package to avoid paying too much interest.

You should also not borrow beyond your current financial capacity and future capabilities, to prevent risks that may cause you to lose the ability to repay the debt. The house will be confiscated and foreclosed by the bank.

In addition, you should carefully study the loan term. If your income is low, you should choose a loan with a long term to reduce the pressure of monthly bank debt repayments.

At the same time, it is necessary to clearly understand the loan interest rate in each period. At first, the interest rate is always attractive, but then the interest rate will gradually increase over time.

In addition, customers need to understand the principal and interest repayment schedule, related fees such as prepayment penalties, property insurance fees, and other types of contracts such as credit contracts, mortgage contracts, etc. to avoid future problems.