The reality 

Looking at the "Reference Loan Fee Schedule" for mortgage loans at a bank branch in HCMC, Thuy Duong, 31, felt quite hesitant. According to the schedule, the fixed interest rate for the first two years is 8.9 percent per annum. In subsequent years, a floating rate applies.

Duong intends to borrow VND1.5 billion. According to the bank's calculations, with a minimum loan term of five years, her family would have to pay approximately VND30 million per month (including principal and interest). 

"VND30 million per month is within our financial capacity. But what worries me is that the floating interest rate could rise significantly in later repayment stages," she said.

Meanwhile, Khanh Huong, 29, who has just fully repaid her home loan after more than five years, has a calmer view.

From her perspective, interest rates do not significantly affect the decision to take out a home loan. Instead, what matters is how much the bank is willing to lend and how much the borrower wants to take on.

The key is to calculate the loan based on monthly repayment capacity while maintaining a safe financial position without excessive pressure.

Each person allocates budget differently depending on their life needs. In her view, a reasonable mortgage repayment should account for around 50 percent of monthly income, enough to achieve homeownership without undue stress.

“At the time of borrowing, I even considered scenarios where I could still pay both principal and interest if I were unemployed for two to three months,” she recalled. “I would not avoid buying a home just because of high interest rates. Borrowing is financial leverage. The longer you wait, the higher housing prices may rise,” Huong added.

Recently, the market has been stirred by reports that some credit institutions applied real estate loan rates as high as 15 percent per annum. 

However, Nguyen Van Hung from the Vietnam Association of Realtors (VARS) in HCMC, asserted: "The 15 percent interest rate is an isolated phenomenon and does not reflect the general picture."

Hung stated that this rate usually applies only to overdue loans, high-risk profiles, or loans from small, independent financial units. In reality, deposit and lending rates at major commercial banks remain stable to support economic recovery. Treating a few isolated cases as a general trend is inaccurate and may create unnecessary psychological pressure on homebuyers.

A credit officer at a joint-stock commercial bank also confirmed that mortgage rates vary depending on the borrower, loan term, and property quality. The 15 percent rate is not common.

Rates expected to stabilize soon

Also according to Hung, amid market fluctuations, cooperation between developers and banks has created “safety buffers” for buyers. Many large real estate projects are offering preferential interest rate packages lasting 24–36 months.

This model acts as a “shield” for homebuyers in three ways:

First, it fixes costs, protecting borrowers from interest rate increases in the early stage (often the period of highest financial pressure).

Second, it allows better planning, enabling customers to calculate monthly cash flow without worrying about floating rate risks.

Third, it creates momentum for accumulation. The first 2–3 years of interest support give buyers time to build financial reserves and reduce principal before entering the market-rate repayment phase.

For those planning to buy a home, Hung advises focusing on core factors rather than short-term fluctuations:

First, choose reputable developers with strong banking partnerships.

Second, maximize long-term fixed-rate packages (two years or more).

Third, assess actual needs and personal cash flow instead of following the crowd.

Sharing this view, Nguyen Tuan Anh, a finance lecturer at RMIT University Vietnam, said current rate fluctuations are just a “short bend” in a long-term financial plan. A mortgage typically lasts 15–20 years, while monetary tightening cycles usually last 12–18 months.

Despite some changes in deposit rates, liquidity in the commercial banking system remains stable, allowing banks to continue offering safe fixed-rate loan packages for the first 1–3 years (typically 6–8 percent per year) as a buffer for borrowers.

Therefore, if buyers have prepared a safe equity ratio (over 30 percent of property value) and can demonstrate stable income, long-term decisions such as home purchases or business expansion should not be delayed due to short-term cyclical concerns.

Hong Khanh