With credit quotas limited and lending rates reaching 13-14 percent, many homebuyers are forced to restructure their family budgets and increase self-funded capital to avoid falling into a high-interest debt trap.

Borrowers grow uneasy

Thu Huong (Hanoi) is deeply worried about her more than VND4 billion loan at a Big 4 bank as home-loan rates at many lenders surge.

In August 2025, her family decided to buy a 100 sqm three-bedroom apartment priced at over VND6 billion to meet living needs as their children grew older.

With 30 percent of the apartment value from existing funds, the couple signed a bank loan contract for VND4.4 billion, enjoying a preferential interest rate of 6.3 percent per year for the first 12 months.

"After August 2026,  we will no longer enjoy the rate of over 6 percent. Current lending rates have nearly doubled, which truly worries us. The financial plan for bank debt repayment is no longer as originally intended; we must recalculate, or the pressure of paying interest will be overwhelming," Huong complained

Many people are "living in fear" like Huong, as 2026 is forecasted to be a year when real estate credit becomes much more expensive.

In 2026, the credit growth of the whole  banking system is set at 15 percent; in which, real estate credit basically must not exceed the general growth rate of each bank. In the context of limited credit room, credit institutions are forced to recalculate their structure and prioritize capital allocation.

Many banks have moved to increase home loan interest rates. For example, a Vietcombank branch in HCMC announced real estate lending rates at 9.6 percent per year fixed for 6 months, 9.9 percent per year fixed for 12 months, and 13.6 percent per year fixed for 18 months. Notably, the fixed interest rate for 24 months reached 13.9 percent per year.

The bank also announced a prepayment fee of 2 percent on the prepaid amount during the first 3 years, and 1 percent for the following 2 years.

At BIDV, the bank also increased interest rates for housing needs to a minimum of 9.7 percent per year for the first 6 months; a minimum of 10.1 percent per year for the first 12 months, and rates up to 13.5 percent per year for the first 18 months.

At Vietinbank, the lending rate is 10 percent per year for the first 36 months. Floating rates are calculated as the base rate plus 3.5 percent per year.

"Steering" cash flow to prevent market risks

Vu Cuong Quyet, CEO of Dat Xanh Mien Bac, said that over the past two years, real estate lending rates remained low, fluctuating around 6.5 - 7 percent per year. This was a very reasonable cost for homebuyers, contributing to market demand stimulation.

However, the situation of low supply versus high demand has pushed real estate prices continuously upward. Given the strong influx of capital into the real estate market over the past two years, the State Bank has had to implement measures to "steer" cash flow to prevent market risks.

According to Quyet, at the present time, high home loan interest rates are causing significant difficulties for buyers. Instead of the 6.5 percent rate as before, some banks have pushed lending rates up to 13 percent. This means that the interest payment amount for customers has doubled, thereby limiting buyer access due to excessively high financial costs.

However, this context will help buyers limit the abuse of financial leverage.

"Previously, customers only had 20-30 percent of the total amount to buy a house and could borrow the rest from the bank. Using financial leverage up to 70-80 percent poses a huge risk if the borrower faces difficulties in interest repayment. Therefore, a safer and more reasonable calculation in this period is for buyers to have good cash flow, steady income, and a self-funded capital ratio of at least 50-60 percent, borrowing only about 30-40 percent," the CEO of Dat Xanh Mien Bac stated.

Furthermore, tight credit control will play a role in adjusting the real estate market and preventing overheating. When bank capital costs are high and supply becomes more abundant, customers with available cash will hold more options.

At the same time, developers are forced to adjust their business strategies. Instead of focusing solely on high-end or ultra-luxury segments, businesses will have to boost investment in the mid-to-high-end segment to better suit actual needs, bringing positive impacts to the entire market.

Tuan Nguyen