Home buyers nervous about interest rate fluctuations

Many commercial banks have recently begun adjusting their deposit interest rates upwards, leading to a corresponding increase in lending interest rates. This fluctuation has caused many people who have borrowed or are planning to borrow money to own a home to reconsider their financial plans. The increased pressure of monthly debt repayments not only makes things difficult for homebuyers but also puts the real estate market at risk of further liquidity decline.

Young people buying houses and apartments are the ones most affected by the move to increase loan interest rates (Minh Phuong Social Housing Area, Nong Trang Ward, Phu Tho Province)

Pressure to "float"

The financial market has recorded clear fluctuations in home loan interest rates in November 2025. The simultaneous increase in deposit interest rates at many commercial banks has led to corresponding adjustments in real estate loan interest rates.

The volatility is clearly demonstrated through the loan packages offered by many banks. For example, BVBank is offering a home loan package with a preferential interest rate of 8.49%/year for the first 12 months. However, from the 13th month onwards, the interest rate is applied at 14.8%/year, a figure that puts considerable pressure on borrowers, even though the loan term is up to 25 years and the maximum loan limit is 85% of the value of the collateral (maximum 10 billion VND). For home construction and renovation loans, the preferential interest rate is similar (8.49%/year for the first 12 months), but after that, it also floats at 14.8%/year.

Similarly,VIB offers more flexible options for customers to choose from: Fixed rate of 5.9%/year for 6 months, 6.9%/year for 12 months, 7.9%/year for 24 months, or 8.9%/year for the first 36 months. Of particular interest is the actual rate after the promotional period. With the fixed rate of 6.9% for 12 months, from the 13th month onwards, the interest rate will be calculated based on the base real estate loan interest rate (currently around 8.5%/year) plus a margin of approximately 2.8%/year, equivalent to an actual floating interest rate of around 11.3%/year.

Although some commercial banks still maintain preferential loan packages for young people (under 35 years old) with attractive interest rates of only 4%-6% per year for the first 6 to 12 months, in reality, the floating interest rate for home loans after the preferential period is trending upwards, commonly ranging from 12% to 15% per year.

Many commercial banks have increased deposit interest rates, causing lending interest rates to start rising as well.

This increase is causing anxiety among those who have borrowed money. Ms. Ha Thi Hong Thai (Son Luong commune, Phu Tho province), currently an employee of an export wood supply company, has a loan of 1.5 billion VND to buy an apartment, with an initial preferential rate of 5.5% per year. However, with the floating interest rate set to be implemented around May 2026 approaching, bank staff have informed her that the interest rate may increase to 9%-10% per year.

Ms. Thai said: “The increased interest costs force me to recalculate all expenses. This pressure will not be small, especially when my loan contract is disbursed according to progress and the interest rate is calculated according to the market at the time of disbursement.”

"Purifying" the real estate market

The move by banks to increase lending interest rates has had a direct impact, causing real estate transactions in the market to tend to slow down. Interest rates are always a sensitive macroeconomic variable, affecting the market immediately. When interest rates rise, the cost of capital for both real estate businesses and homebuyers increases, leading to weakened demand, tightened cash flow, and a sharp decrease in market liquidity.

Mr. Luu Cong Son, a real estate consultant in Phu Tho province, commented: “Interest rates are the most sensitive ‘regulating valve’ for the real estate market. When borrowing costs increase, house prices are unlikely to rise as sharply as in the previous period. Investors using high financial leverage will be forced to restructure their portfolios or sell off assets to reduce their debt burden, while those with a genuine need for housing will also have to recalculate their financial plans because the pressure of monthly debt repayments increases.”

According to financial experts, real estate businesses are the most severely affected due to their heavy reliance on financial leverage, with most projects being implemented based on bank loans and bond issuance. Rising interest rates are eroding profits due to increased financial costs, forcing businesses to cut expenses, delay projects, or restructure their investment portfolios.

Those who want to acquire real estate through financial leverage should carefully consider their options at this time.

Experts also advised those with genuine housing needs: "Rising interest rates shouldn't be a major concern, but careful consideration of long-term debt repayment capacity is necessary to avoid the mentality of 'buying at any cost.' During this volatile market period, buyers should prioritize projects with clear legal documentation, complete infrastructure, and especially those offering fixed interest rate support for the first 2-3 years to minimize financial risks."

The increase in deposit interest rates has led to an increase in home loan interest rates, putting home buyers in a difficult position regarding debt repayment costs and putting the real estate market at risk of liquidity decline.

This is also a purification mechanism that forces entities to restructure their finances. Experts recommend that real buyers carefully calculate their long-term debt repayment ability and prioritize projects with fixed interest rate support policies to maximize financial security.

Trang Thuy

Source: https://baophutho.vn/nguoi-mua-nha-thap-thom-truc-bien-dong-lai-suat-243931.htm