Interest rates for home and property loans are currently at their lowest in many years, ranging from 5-6 per cent per annum at several banks.

Among Vietnam's four largest state-owned commercial banks, BIDV is offering a housing credit package with interest rates starting from 5 per cent per annum for terms up to 30 years, and a maximum limit covering 100 per cent of the capital needs.

Vietcombank has allocated $2.08 billion for personal loans to buy houses, renovate houses, purchase cars, and for consumer loans, with preferential interest rates starting at 4.9 per cent per annum for the first 6 months for loans under 24 months, and from 5 per cent per annum for the first 12 months for loans over 24 months.

At Agribank, home loans with a minimum term of 3 years have a fixed interest rate of 6.5 per cent per annum for the first 12 months. For loans with a 5-year term, the rate has been set at 7 per cent per annum, fixed for 24 months.

VietinBank is offering short-term home loan interest rates starting from 5.2 per cent per annum, and medium- to long-term loans from 5.8 per cent per annum.

Among the commercial banks, SHB is offering a preferential interest rate starting from 5.79 per cent per annum for home loans, with loan terms up to 25 years and a maximum loan of up to 90 per cent of the asset's value.

BVBank has interest rates ranging from 4.9 per cent per annum, fixed for 6 months at 7.49 per cent per annum, and fixed for the first 18 months for loans over 24 months.

Sacombank has set aside $416.67 million for preferential loans for customers needing to purchase, build, or renovate real estate, and to buy cars, with interest rates starting from 6.5 per cent per annum.

PVcomBank is offering interest rates of 3.99 per cent per annum for the first 3 months, 5.99 per cent for 6 months, and 6.2 per cent for 12 months.

At Techcombank, the rates are 5 per cent for the first 3 months, 6 per cent for the first 6 months, 6.3 per cent for the first 12 months, and 6.8 per cent for the first 18 months.

HDBank is offering interest rates of 5 per cent per annum for the first 6 months, 6.5 per cent for the first 12 months, and about 8 per cent for the first 24 months.

However, under Circular 22, effective from early July, commercial banks are only allowed to lend to individuals for the purchase of completed homes ready for handover, otherwise known as available housing.

Regarding this regulation, financial experts believe that this circular poses difficulties for the real estate market, limiting individuals' access to bank credit.

Additionally, concerns about higher home-loan interest rates after the preferential period are making many people hesitant to take out home loans at this time.

"Although home loan interest rates have decreased, these are only preferential rates applied for a certain period depending on the credit package. After the preferential period, interest rates will float according to the base rate formula or 12-13 month deposit rates plus the usual margin of 2-3.6 per cent per annum, so they will be high," said Dinh Minh Tuan, director of Batdongsan.com.vn in the southern region.