Floating mortgage interest rates can rise sharply after the initial preferential period, reaching 12‑15 percent a year. Because these rates directly affect monthly repayments, understanding them is essential for anyone planning to buy a home.

Experts advise that total monthly principal and interest payments should not exceed 30‑35 percent of actual income. A household earning VND40 million a month should keep loan repayments around VND12‑14 million; exceeding 40 percent creates significant financial pressure.

Economist Ngo Tri Long illustrated the impact with a VND1.5 billion loan over 20 years. At a fixed 10 percent rate the monthly payment is about VND14.5 million, but if the rate jumps to 15 percent the payment climbs to roughly VND19.8 million.

He also pointed out that a family with VND3 billion in savings and a VND1 billion loan would face interest costs of more than VND10 million a month when borrowing at 13‑15 percent. By contrast, depositing the VND3 billion at 8‑9 percent yields about VND300 million a year, enough to cover rent comfortably.

These figures show that high floating rates can quickly turn a mortgage into a heavy financial burden. In such an environment, continuing to rent may be a safer way to protect your monthly budget.