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Experts advise borrowers not to borrow more than 80% of the property value, and to keep total monthly debt service at or below 50% of income.
Mortgage rates are rising, but many banks continue to advertise rates ranging from 3.99% to 6% per year. Borrowers are urged to read the terms carefully, as these rates typically apply only during an initial period of 3 to 6 months.
After the promotional period, floating rates can increase to above 10% per year, and in some market conditions can reach 12% to 14% per year.
Banks may lend up to 80% to 85% of the asset value. However, experts recommend limiting borrowing to no more than 80% and ensuring that monthly debt service does not exceed 50% of income.
Homebuyers are encouraged to prioritize longer fixed-rate packages, prepare a contingency fund covering 6 to 12 months of debt service, and plan for scenarios of rising rates to reduce the risk of financial pressure later.
A leader of a state-owned bank said the decision to raise mortgage rates follows policy direction. The credit-growth limit for real estate this year is constrained, and higher mortgage rates for real estate lending are intended to redirect credit toward production and business activities.
Experts said the current rate environment will accelerate the market’s screening process. Short-term speculative capital is likely to retreat, while homebuyers will need to evaluate their income, debt-servicing capacity, and the true value of the product more carefully.
High rates are not expected to end the market, but they are likely to reduce easy speculation. The market is anticipated to recover more slowly and more sustainably, with fewer hot price surges than in the past.
Reported by Minh Trang.
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