The market is still difficult, investors are worried about “holding debt”
Ms. Hoai Thu (living in Binh Thanh district, Ho Chi Minh City) said she has finances of about 4-5 billion VND and wants to buy an apartment or townhouse to invest but does not dare to “spend money”. “Many credit officers advised me to borrow about 1.5-2 billion VND more to buy high-end real estate because the seller “cut losses” and waited for the market to recover to sell for a profit.
But I realize that in the current real estate market in Ho Chi Minh City, it is still not vibrant, buying “surfing” investments is very difficult right now. “Unfortunately, the interest rate incentive period ends and the house cannot be sold. At that time, we have to bear a large amount of debt and interest rates” – Ms. Thu analyzed.
In fact, according to records, up to this point, there are still many investors who are having to “hold” real estate and have to pay dozens of percent of bank interest during the past 2 years since the market froze.
Some people even borrow money to buy 2-3 pieces of land or apartments; Collecting money with friends to buy real estate in the province worth tens of billions of dong… when the market was hot, now prices have dropped very deeply, unable to cut losses, have to hold on to debt and pay billions of dong in interest every year.
Regarding floating interest rates, a senior leader of Vietnam Bank for Industry and Trade (VietinBank) said that many banks have long relied on the average interest rate of 12-month term deposits of 4 large banks (Vietcombank, Agribank, VietinBank, BIDV) to announce base interest rates.
Home borrowers can monitor savings interest rate trends at major banks to know the base interest rate, then calculate the loan interest rate. From there, calculate the monthly debt repayment amount after the fixed interest rate period ends.
In order not to “fail” when borrowing to buy real estate, a Vietcombank transaction manager recommends that in addition to interest rates and loan-related costs, borrowers need to carefully consider other factors such as stable income or not. , the family’s living expenses (child’s tuition, learning needs to improve knowledge, health training, reserve money for force majeure expenses…) will account for what % of income? . “From there, borrowers can choose the loan interest rate and fixed interest rate period to suit their financial capacity” – a head of Vietcombank’s transaction department said.
Prepayment is made difficult
Recently, Nguoi Lao Dong Newspaper received a number of complaints from home borrowers about suddenly receiving notice of an increase in loan interest rates without knowing the basis for interest calculation.
There are previous home loan customers who still have to pay interest up to 12%-13%/year, even though lending interest rates have dropped sharply since half a year. In addition, some people reported that credit officers made it difficult for them to close their home loan application before the due date; Borrowing from other banks to repay debt early is also made difficult, not allowing settlement…
