HCMC – Vietnam has raised the interest rate for social housing loans to 6.6% per year as of August 1, leading to industry experts expressing concern over a heavier financial burden on homebuyers, reported the local media.
The new rate is higher than the previous 5% under a VND30-trillion housing support package, and not ideal for social housing loans, the Vietnam News Agency cited Le Hoang Chau, chairman of the HCMC Real Estate Association (HoREA), as saying.
The change follows Decree No. 100/2024/ND-CP, which came into effect on August 1. The decree sets the social housing loan interest rate in line with rates for low-income households. The overdue debt interest rate has also been adjusted to 130% of the regular loan rate.
Consequently, the lending rate for low-income households has increased from 4.8% to 6.6%, affecting those looking to buy or rent social housing. Financial expert Dinh The Hien noted that even the previous 4.8% rate was already considered high.
For new buyers, the higher rate may lead to reconsidering taking out loans. Meanwhile, Associate Professor Dr. Dinh Trong Thinh emphasized that the core issue is the limited supply of social housing, which has driven up prices.
Since the current rates are not attractive enough for social homebuyers, HoREA has proposed maintaining the 4.8% rate to ease financial pressure and has urged the Government to reduce the lending rate for low-income households to between 3% and 4.8%.
