HÀ NỘI — Homebuyers remain under pressure even as deposit interest rates continue to cool, with mortgage rates at some banks still climbing to 14-15 per cent per year after promotional periods, keeping financing costs high amid rising property prices.

While lower deposit rates have reduced returns for savers, borrowers – especially young and middle-income homebuyers – continue facing difficulties accessing affordable housing loans as banks maintain relatively high lending rates and tighter credit conditions.

According to a recent 2026 housing market outlook report by VIS Rating, average mortgage rates this year are expected to remain 3-4 percentage points higher year-on-year as real estate credit stays tightly controlled and banks’ funding costs remain elevated.

VIS Rating said that although housing supply is improving, high borrowing costs and rising property prices will continue weighing on demand. Apartment absorption rates fell to 95 per cent in 2025, reflecting increasingly cautious buyer sentiment.

In Hà Nội and HCM City, apartment prices have risen around 20 per cent year-on-year, making home ownership increasingly difficult, especially for young and middle-income buyers.

Commercial banks currently offer fixed mortgage rates of around 8-10 per cent per year, while floating rates after promotional periods can climb to 14-15 per cent annually.

Several banks, including Vietcombank and Techcombank, have introduced home loan packages starting from 3.99 per cent per year, though these preferential rates only apply during initial fixed-rate periods before switching to floating rates. Agribank’s mortgage rates currently range from 8-9.8 per cent annually.

Although banks continue rolling out low introductory-rate packages to stimulate demand, most incentives only last six to 24 months. Afterward, loans shift to floating rates based on deposit rates plus margins of 3-5 percentage points, potentially pushing borrowing costs sharply higher.

Nguyễn Văn Đính, chairman of the Vietnam Association of Realtors, said mortgage rate fluctuations directly affect people’s ability to buy homes, especially young buyers and middle-income households that rely heavily on bank loans.

He advised buyers to carefully assess long-term repayment capacity rather than focusing solely on initial promotional rates.

According to Phạm Chí Quang, director of the State Bank of Vietnam (SBV)'s Monetary Policy Department, if lower deposit rates continue spreading through banks’ funding structures, lending rates could have more room to decline in the coming period.

However, SBV stressed that interest rate cuts must go hand in hand with exchange rate stability and maintaining the attractiveness of the Vietnamese đồng to limit dollarisation.

Meanwhile, deposit interest rates have continued to cool, with 42 banks cutting rates by 0.1-0.5 percentage points since the SBV Governor met commercial banks in early April 2026.

Despite the broader downward trend, several smaller lenders are still competing for medium- and long-term deposits through selective high-rate offerings and promotional schemes.

Saigonbank recently raised its 13-month online deposit rate to 7.9 per cent per year, currently among the highest on the market, while Bac A Bank increased its 13-month rate to 7 per cent annually for certain deposits.

Banks are also rolling out promotional savings products to attract customers. Vietcombank launched a flexible savings product offering rates of up to 7.4 per cent per year, while digital bank Cake by VPBank is offering bonus rates that could push returns to nearly 9 per cent annually for some customers.

However, analysts said most of these incentives are temporary and do not signal a broad rebound in deposit rates.

While eight banks offered deposit rates of 7 per cent or higher for 12-month terms in early April, only a few still maintain such levels.

Vietcombank Chairman Nguyễn Thanh Tùng said a new wave of deposit rate competition is unlikely this year as state-owned banks are coordinating to maintain stable market conditions. — VNA/VNS