Banks hike mortgage interest rates
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Several banks have increased mortgage interest rates by up to 1 percentage point amid credit tightening.
In mid-June Vietcombank hiked its from 9.2 percent to 9.8 percent for the first three years.
At least three other banks have increased its rates.
United Overseas Bank has raised its rate from 6.49 percent to 7.69 percent.
Vietnam International Bank has adjusted its rate up by 0.2 percentage points since last month to 8.7 percent.
Bank managements said the pressure of rising deposit interest rates and tightened credit has forced them to hike loan interest rates.
Trinh Bang Vu, head of retail lending at Shinhan Bank, said since there is little room left for lending this year and the State Bank of Vietnam has not increased quotas, banks have to be selective in their loans.
Some lenders like Orient Commercial Bank have not yet increased their mortgage rates, but expect to do so by 0.1-0.2 percentage points in the next few months.
SSI Securities analysts expect home loan interests to continue to rise even if new credit growth quotas are announced.
KB Securities analysts forecast a 0.4-0.7 percentage point increase in rates this year due to inflation.
Questions & Answers
Q.Which banks have increased their mortgage interest rates?
Which banks have increased their mortgage interest rates?
Vietcombank, United Overseas Bank, and Vietnam International Bank are specifically named as having increased their rates. The article also mentions that at least three other banks have raised their rates.
Q.What is causing banks to raise mortgage interest rates?
What is causing banks to raise mortgage interest rates?
Bank managements attribute the hikes to the pressure of rising deposit interest rates and tightened credit conditions. Limited room for lending and unchanged State Bank of Vietnam quotas also contribute to the increases.
Q.Are all banks increasing their mortgage rates immediately?
Are all banks increasing their mortgage rates immediately?
No, some lenders like Orient Commercial Bank have not yet increased their mortgage rates. However, they anticipate doing so by 0.1-0.2 percentage points within the next few months.
Q.What is the forecast for future home loan interest rates?
What is the forecast for future home loan interest rates?
SSI Securities analysts expect home loan interests to continue rising, even if new credit growth quotas are announced. KB Securities analysts forecast a 0.4-0.7 percentage point increase in rates this year due to inflation.