Best Home Loan Interest Rates: Which Bank is Right for You? (May 2025 Update)

Are you looking for the bank offering the best home loan interest rates and policies? Stay updated with the latest interest rates for home loans.

As the old saying goes, "Settle down, then build a career." Indeed, a home is more than just a place to live; it's a sanctuary after a long day's work and a place to build a loving family. It provides the foundation for a stable career. Consequently, home and land loans have consistently drawn significant interest from families over the years.

One of the most frequently researched aspects is home loan interest rates. Where can you find the best rates? Which bank offers the most attractive incentives? Do you qualify for social housing loans with extremely low interest? Let VPBank guide you in finding opportunities to own your dream home at the best possible cost through the following insights!

1. Home Loan Interest Rate Landscape in May 2025

The demand for home loans is showing signs of recovery, albeit slowly, opening up positive opportunities for the real estate market. Furthermore, lending interest rates have cooled compared to previous years.

1.1 Latest Interest Rate Policies

Here are some of the latest updates on interest rates and policies related to home loans:

• Home loan interest rates currently range from approximately 3.99% to over 8%, depending on the bank and the promotional period.

• Banks are implementing numerous attractive preferential interest rate programs for individuals under 35, facilitating access to home loans.

• Real estate credit growth: As of the end of July 2024, real estate credit had increased by 4.6% compared to the end of 2023. Notably, real estate business credit surged by 10.3%, indicating strong interest from enterprises in this sector.

• Opportunity for housing price adjustments: Although current housing prices remain high, this presents an opportunity for the market to adjust and create more attractive financial solutions for buyers. Simultaneously, lending interest rates have begun to show signs of decline, offering better housing accessibility in the near future.

Deposit interest rates at banks show signs of increasing compared to 2024

1.2 Commercial Bank Trends

Deposit interest rates are tending to be slightly adjusted upwards to stabilize the economy and control inflation. However, the upward adjustment is minor, and production and social welfare activities, such as home loans, continue to receive active support from the Government and the State Bank.

In January 2025, financial experts predicted that home loan interest rates would not change significantly. Consequently, as of May 2025, interest rates at most banks have remained stable with minimal adjustments. Nevertheless, many banks are now applying various preferential policies, especially for medium and long-term loans like those for home and real estate purchases.

2. Which Bank Offers the Lowest Home Loan Interest Rates?

Source: batdongsan.com.vn

Note: Data updated May 2025, for reference only. Actual rates depend on credit assessment and may vary. Please contact the specific bank for precise figures and the best loan plan.

2.1. Top 5 Banks with the Best Home Loan Interest Rates

Currently, the banks with the lowest starting interest rates for home and land loans include:

• BIDV: 5.0%/year

• Vietcombank: 5.5%/year

• Woori Bank: 5.6%/year

• GPBank: 5.7%/year

• Vietinbank: 5.8%/year

Based on surveys, state-owned banks (Agribank, Vietcombank, Vietinbank, and BIDV) are offering favorable interest rates for housing loans, ranging from 5-7%/year. In May 2025, commercial banks also adjusted home loan interest rates downwards to stimulate demand. However, interest rates on older loans are experiencing a slower reduction, typically only 1-2%.

You should consider various factors when choosing a suitable bank for a home loan, especially for long-term repayment.

2.2. 5 Reputable Banks with Average Home Loan Interest Rates

When choosing a bank, consider those with average credit interest rates combined with a low adjustable interest rate margin. This is because home loans typically have long repayment periods. Calculated on the outstanding principal balance, the interest payable is often more manageable. Some popular banks in this category include:

• VPBank: 7.2%/year
• HDBank: 6.5%/year
• VIB: 6.5%/year
• TPBank: 6.6%/year
• Techcombank: 6.7%/year

These banks generally offer more favorable adjustable interest rate margins. For the most accurate and up-to-date information, it's best to contact these banks directly.

3. Key Considerations for Home Loan Interest Rates

Buying a home usually involves a large sum of money over a long period. Therefore, the loan interest rate is a critical factor. VPBank highlights the following important points:

3.1. Loan Conditions for Different Customer Segments

Banks typically offer the most competitive interest rates, but their lending conditions are also more stringent than other credit organizations. This particularly applies to requirements for a good credit history and sufficient income to cover principal and interest payments. Additionally, each bank has specific preferential policies for target customer segments:

• Individuals looking to purchase social housing.

• Military personnel and those working in the armed forces when borrowing from MB Bank.

• Farmers and those in agriculture when borrowing from Agribank.

3.2. Accompanying Conditions

Some banks may require you to purchase additional services, such as insurance, savings deposits, premium account numbers, or credit cards, to qualify for better interest rates. You should carefully weigh the benefits against the costs of these services to make an informed decision.

Some banks require borrowers to open a credit card in order to receive better loan terms.

3.3. Interest Calculation Method

This interest amount will decrease over time as the principal balance reduces. Typically, loan interest is automatically calculated and communicated to the borrower. However, you can use online tools or mobile apps to precisely calculate the actual interest payable.

3.4. Income Planning to Mitigate Repayment Pressure

While many focus on loan interest rates, it's crucial to ensure your repayment capacity and ability to meet basic living expenses. For a home loan, you'll need to pay both principal and interest monthly. It's advisable to allocate about 30-40% of your monthly income to meet financial obligations.

You may be interested in:

• What is saving? Why do we need to live a frugal life

• Check out the latest mortgage interest rates from various banks

• Mortgage loans using Red Book/Pink Book: Are the requirements and procedures difficult?

VPBank has provided you with the latest information regarding home loan interest rates. We hope you have found a suitable bank and loan plan to soon achieve your dream of owning a home.

If you need more information about home and land loans, please visit www.vpbank.com.vn/ca-nhan/vay/vay-mua-nha or contact our Hotline 1900 5454 15 for detailed advice at any time!