Thursday, May 23, 2024
Thursday, May 23, 2024
Home » Demand for Mortgage Loans in Vietnam Remains Low Despite Interest Rate Cut

Demand for Mortgage Loans in Vietnam Remains Low Despite Interest Rate Cut

by Long Nisay
0 comment 50 views

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).

Source: Xinhua

You may also like

Hanoi Observer is a global leader in the online news. We seek to inform and engage with our readers. Staffed 24 hours, seven days a week by a dedicated team around the globe, we deliver news from journalists around the world. We are contrarian truth-seekers and truthtellers. We are journalists united by a mission to inform and engage with our readers.

We bear witness to history as it unfolds and explain not just what happened, why it happened and what it means to our readers and the public.

We are contrarian, we are committed to the news, speaking truth to power.

Hanoi Observer, A Media Company – All Right Reserved.