Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, said that the credit package of 120 trillion dong does not meet the criteria of a preferential credit package for social housing. — VNA/VNS
HANOI: Experts on the property market are proposing interest rate cuts to loans for investing or buying social housing products to 4.5% to 6% per year from 8.2% to 8.7% at present.
According to a survey from the Vietnam Real Estate Association, investors and buyers of social housing projects must take loans with high interest rates.
Specifically, the interest rate is 8.7% per year for investors and 8.2% for home buyers.
These interest rates have made it difficult for investors and buyers.
Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, said that the credit package of 120 trillion dong does not meet the criteria of a preferential credit package for social housing.
A preferential credit package for social housing projects must meet two important criteria: low interest rates and long-term.
According to Chau, the commercial banks’ average interest rate of 8.2% per year for buyers is still too high compared to the financial ability of low-income people.
Nguyen Chi Thanh, deputy chairman of the Vietnam Real Estate Brokers Association, agreed that the interest rates for eligible buyers of social housing projects are still high.
According to several studies, the income of workers is often very low.
About 75% of them have to borrow money to pay for their living costs, the Vietnam General Confederation of Labour reported.
“With the loan interest rate at 8.2% a year, they cannot buy social housing,” it said.
For someone with a stable income of 12 million dong a month, it will take up to 37 years to pay off the loan with a high interest rate.
However, if they can borrow at a lower interest rate of 4.5% a year, the payment period will be shortened to about 19 years. — Viet Nam News/ANN
