BIDV: Top loan for young buyers – home ownership is becoming cheaper!

BIDV: Top loan for young buyers – home ownership is becoming cheaper!

In Vietnam, the Bank for Investment and Development (BIDV) introduced a new preferential loan package for young private customers up to 35 years old in March 2025. This offer is intended to encourage the purchase of home ownership and comes at an opportune time while building interest rates fluctuate in many markets. In Germany, ING recently reduced building interest rates, but increased some conditions for building financing.
BIDV offers a fixed interest rate of 5.5% per year for the first three years of the loan. This is considered particularly attractive because financing options for young buyers are often limited. Borrowers also benefit from a five-year repayment exemption and a loan term of up to 40 years.

Pham Phuong Lan, deputy head of BIDV retail banking, highlights that the bank wants to create favorable financial conditions. “We encourage our clients to identify their needs and financial capacity and create a concrete debt repayment plan,” she says. Within a few months of the introduction of the loan package, over 2,500 loans had already been granted - a sign of the high demand.
The (forward-looking) approach to making it easier for young people to access housing comes in the context of rising building interest rates in other markets, where the first adjustments can already be observed. While KfW in Germany raised interest rates for certain support programs on May 15, young buyers at BIDV can still enjoy temporarily low interest rates.

Current developments in building interest rates

Building interest rates have shown different developments in the last few weeks. While ING increased building interest rates for loans with fixed interest rates over five years by 10 basis points on May 6th, PSD Bank lowered the conditions for building financing on May 14th, especially for fixed interest rates from 15 years. These trends give potential buyers pause.
After the increase, ING's current conditions for a loan amount of 300,000 euros with a fixed interest rate of 15 years are a fixed interest rate of 3.81%, which corresponds to an increase compared to the previous rate of 3.71%. Experts estimate that the effective building interest rates are currently around 3.5% on average. In the long term, 80% of market analysts expect building interest rates to rise to 4% for 10-year loans.

These developments could affect the plans of young buyers, especially those who want to take advantage of BIDV's temporarily attractive offers. The bank also offers a digital solution through the BIDV Home app, which allows users to view housing information and calculate a debt repayment plan. Registering for loans is easy and can be done online or directly at the nearest BIDV branch.
BIDV has focused on customer service: a call center that is available around the clock supports potential borrowers with questions about procedures and documents. This customer-centric approach could represent a key advantage in a rapidly changing financing environment.