Mortgage Rates Still Sky-High — What Would I Do If I Needed a Loan Now?

This June, I sat down for coffee with a friend. She wanted to buy a VND 3 billion apartment, planned to borrow VND 2 billion. The bank quoted her 11% annual interest. She sighed: “Alva, the monthly interest alone is nearly equal to my salary.”

I stayed quiet. Because she was right.

And I knew — this wasn’t just her story. This is the story of millions of Vietnamese who want to own a home, but the market is shutting the door on them.

📌 What’s Happening

• Mortgage interest rates in early June 2025 remain at 10-12% annually — no signs of decrease
• Commercial banks maintain high rates despite pressure from a stagnant real estate market
• Bank liquidity has improved but lending capacity still prioritizes faster-return sectors — not long-term real estate
• Homebuyers must either accept high interest costs or postpone their homeownership plans

Source: cafef.vn

What Ho Alva Sees

I don’t own a home — I’ll say it straight. In 2022, when I lost everything because VN-Index dropped 40% and Mr. Pip scammed me out of hundreds of millions more, I had to accept: buying a home is a story for 5-7 years from now.

But 11% annual interest? I did quick math: borrow VND 2 billion for 20 years, total interest paid nearly equals the principal. You buy 1 home but actually pay for 2.

The question I ask myself: Is there another way?

Instead of carrying VND 2 billion debt with compounding interest, if you have VND 500 million — you could:

• Rent a good place, live comfortably
• Invest that VND 500 million in a long-term growth stock portfolio (if you know how)
• Wait for interest rates to drop — or property prices to adjust

I know this sounds counterintuitive. Vietnamese people are taught: “You must own a home.” Our parents said so because their generation lived through high inflation and instability. A home = real asset.

But the 2025 context is different. Inflation is controlled. Financial markets are developed. You have more options than the previous generation.

What matters: Don’t buy a home because of social pressure. Buy because you’ve calculated — and the numbers make sense.

For women, I see this story weighing even heavier. Many buy homes to prove financial independence. But if that home strangles your monthly cash flow, makes you afraid to quit your job, afraid to refuse bad projects, afraid to rest — then that’s not freedom. That’s a chain.

🔍 Which Number Deserves More Attention

Everyone only looks at the 11% interest rate. But I notice a different number: the rising non-performing loan ratio in real estate.

When high interest rates persist, many borrowers can’t hold on. They sell at a loss. Banks repossess assets. The secondary market floods.

This means: if you’re patient, hold cash or invest with stable returns, 12-18 months from now you could buy a home at better prices — without carrying debt that kills your cash flow.

The market doesn’t reward those who rush. It rewards those who know how to wait for the right moment.

I Once…

In 2021, when my portfolio was growing beautifully, I thought I’d buy a home in 2022. I had a detailed plan: 30% self-funded, 70% loan.

Then Q2/2022 came. VN-Index crashed. I lost everything. The home-buying plan vanished into thin air.

I was furious then. Angry at the market. Angry at Mr. Pip. Angry at myself for being too greedy.

But looking back now, I’m quietly grateful for that slap. If I’d bought a home in 2022 with high interest rates, then the market collapsed, I would’ve had to sell at a loss — or lose the home entirely.

Now I don’t own a home. But I have stable cash flow. I have an investment portfolio growing slowly but surely. I sleep better.

And most importantly: I learned that timing matters more than intention.

You want to buy a home? Fine. But ask yourself:

• At 11% interest — can I afford this for 5 years?
• If my income drops 30%, can I still keep the home?
• If home prices fall 20%, will I regret this?

If you answer “yes” to all 3 questions — then buy. But if you hesitate on even 1, then wait.

Because that home isn’t going anywhere. But your financial health — once lost — is very hard to recover.

Are you planning to buy a home this year? How are you calculating the interest rates? Or are you choosing a different path?

I don’t have the right answer for you. But I can sit with you — calculate together, ask hard questions, look straight at the numbers.

Schedule a free consultation — we’ll talk real, no sales pitch, no get-rich-quick promises.