Demand for mortgage loans in Vietnam remains low despite interest rate cut-Xinhua

Demand for mortgage loans in Vietnam remains low despite interest rate cut

Source: Xinhua

Editor: huaxia

2023-10-27 09:52:19

Photo taken on June 23, 2023 shows a train running on the Cat Linh-Ha Dong urban railway line in Hanoi, capital of Vietnam. (Xinhua/Pham Dinh Duc)

HANOI, Oct. 27 (Xinhua) -- In spite of interest rate cut by 1-3 percentage points per year, demand for mortgage loans in Vietnam remains low, Vietnam News Agency (VNA) reported Thursday.

Recent surveys at many banks show the current home loan interest rates standing at 8-10 percent per year.

According to the VNA, foreign-owned banks in Vietnam have reduced mortgage loan interest rates.

The agency cited a leader of a state-owned bank, who declined to be named, as saying that the low demand for mortgage loans by individual customers was due to the economic difficulties that affect people's income.

Even though there is demand for housing, it is difficult for banks to stimulate demand for home purchase credit currently. On the other hand, the real estate market remains slack, so individual customers are not interested in borrowing money to buy houses. They expect house prices and interest rates to decrease further, the lender said.

According to the Ministry of Construction, outstanding loans for real estate business activities in Vietnam reached nearly 986.5 trillion Vietnamese dong (40 billion U.S. dollars).


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