Difficulty in borrowing money to buy a house in the current context

Looking to buy an apartment in a project in Binh Trung ward, Ho Chi Minh City for about 3.4-3.5 billion VND, but for the past few weeks, Mr. Manh Nam has not found a suitable commercial bank to borrow capital.

All kinds of incentives but still difficult to borrow money to buy a house

Previously, Mr. Nam spent many months researching the project location, transaction price as well as living environment before deciding to invest. However, after asking 4-5 commercial banks that have preferential home loan packages such as Vietcombank, MB, HDBank , TPBank, only one bank agreed to support the purchase of the project apartment that he was interested in.

Difficulty in borrowing money to buy a house in the current context - Photo 1.

Many banks offer preferential home loan packages but meeting conditions is still difficult.

"Bank credit officers said that because this project does not have a pink book, it is on the review list and has temporarily stopped supporting loans. Currently, only TPBank accepts loans, with interest rates of about 6.6%/year in the first 12 months, 7.1%/year in the first 18 months and 7.9%/year in the first 36 months. After the preferential period, the interest rate margin will be adjusted to about 3%/year" - Mr. Nam informed.

Credit officers at some banks also "advised" customers that they could use real estate assets elsewhere as collateral to borrow money to buy apartments in the above-mentioned project. Mr. Nam wondered: "Not everyone has real estate to mortgage. Most borrowers often use the apartment they intend to buy as collateral."

The same situation also occurs with many customers who want to borrow money to buy apartments in projects that do not have pink books, only have sales contracts. In fact, in recent times, the authorities have made great efforts to remove difficulties and obstacles in issuing pink books. However, up to now, there are still many projects where people have moved in for many years but have not been issued books.

The latest figures from the Ho Chi Minh City Department of Agriculture and Environment show that the city still has more than 81,000 unresolved records due to problems in procedures for granting pink books at commercial housing development projects.

Not everyone has difficulty accessing capital to buy a house. Mr. Ngoc Quoc (residing in Hiep Binh Ward, Ho Chi Minh City) said that Vietcombank has just disbursed a loan of more than 1.5 billion VND to buy an apartment, with a preferential interest rate of 5.5%/year for the first 3 years, with a loan term of up to 40 years. On average, each month, he pays both principal and interest of more than 10 million VND, after which the amount to be paid will gradually decrease, with an interest rate after the preferential period of about 9%/year.

"Because my wife and I are both under 35 years old, we are eligible for a preferential credit package for young people. The loan application is not too complicated, and the loan term is up to 40 years, so we are quite assured," said Mr. Quoc.

Things to note

According to the reporter's records, a series of commercial banks such as Sacombank, BIDV, Agribank, TPBank, HDBank, VIB, SHB, VPBank, ACB... are launching many incentive packages for home loan borrowers, especially for young customers, in accordance with the policies of the Government and the State Bank.

These preferential packages mainly apply interest rates from about 6%-7%/year in the first 12 months, from 7.5%-8.5%/year for the next 12-36 months. After that, the interest rate will float, usually adding a margin of about 3%/year compared to the base interest rate. If customers pay off the debt early, the penalty fee is not as high as before, commonly from 1%-2.5% of the outstanding debt in the first 1-3 years.

In addition, the difference compared to previous credit packages is that many banks have extended the loan period to 30, 40, or even 50 years, helping customers reduce the pressure of monthly debt repayment and easily build long-term financial plans. Some banks also allow a principal grace period of 5-10 years if the loan is to buy a townhouse with a red book or a large loan value, from 10-20 billion VND.

However, Mr. Trinh Bang Vu, Head of Retail Business Division - Shinhan Bank Vietnam, said that home loan borrowers from now until the end of the year need to pay special attention to the interest rate factor. Because, at the end of the third quarter and the beginning of the fourth quarter, lending interest rates often increase.

"Borrowers should take advantage of the low interest rate period to take advantage of cheap capital, if they have a clear plan. Borrowers also need to consider the possibility of interest rate increases at the end of the year to consider their ability to repay the debt," Mr. Vu recommended.

Financial expert Dr. Huynh Trung Minh said that the lending interest rate level in the second half of 2025 and 2026 is likely to increase slightly. According to him, home buyers need to understand the nature of preferential interest rates. Very low interest rates, such as 3.99%/year or 5%/year, are usually only applied for the first 6 months to 2 years, after which they will switch to floating interest rates. At that time, the actual interest rate can increase sharply, depending on the base interest rate plus the margin (usually an additional 3%-4%/year).

Mr. Minh cited: "For example, in the 2022-2023 period, floating interest rates increased from 8% to 14%/year due to the sharp increase in reference interest rates - usually the 1-year term deposit interest rate - causing interest costs to increase by 30%-40%. Borrowers need to calculate their ability to repay debt under the scenario of increased interest rates."

In addition, borrowers should also carefully consider the terms of the credit contract, especially the penalty for early repayment (usually 1%-5% of the outstanding debt) and mandatory requirements such as loan insurance and early debt collection terms. Home buyers should consult at least 3 banks to find the most suitable package.

"Borrowers also need to pay attention to legal risks related to real estate, such as "suspended" projects or problems with sales contracts, to avoid the situation of paying but not receiving the house" - Dr. Minh noted.

Real estate business loans increase sharply

State Bank data as of June 30 shows that credit growth for the economy has reached over 17.2 quadrillion VND - an increase of 9.9% compared to the end of last year.

Credit growth mainly focused on priority sectors and production and business. Credit for real estate business activities alone increased by 18.47%.

Source: https://nld.com.vn/van-kho-vay-tien-mua-nha-196250710211945246.htm