The dream of homeownership for young people: A challenging journey, but a path forward

Owning an apartment is the dream of many young people.

When income can’t keep up with the market

Every evening after work, Minh and Hoa, a 33-year-old couple working as factory workers in Ho Chi Minh City, pass by an apartment complex near Phu Lam Park. Hoa often teases her husband: “One day, we’ll take our kids for a walk here - from our own home.”
Their combined monthly income of VND 30 million is not low, but saving enough to buy a home - especially at today’s prices - is no easy feat.

After nearly five years of renting, the young couple decided to plan for their first apartment. However, once they began researching, they ran into numerous obstacles: insufficient savings, concerns about monthly repayment pressure, and the unpredictability of interest rate fluctuations after the initial period.

“We’re not afraid of installments, but our biggest fear is managing cash flow. At this stage of our lives, we’re still young and have many responsibilities - raising children, planning for education, building our careers. If monthly loan payments are too high, it becomes very stressful.” Minh shared.

Minh and Hoa’s story is not unique. Nguyen Bao Tran, a 29-year-old single woman and marketing manager at a financial company in Hanoi, faces similar challenges. Despite saving nearly VND 500 million after five years of working, she has had to postpone her home-buying plans.

After years of renting, Tran realized that “pouring money into rent every month” could instead be an investment in herself - by purchasing her first home. “I don’t need a big or luxurious place. Just a private space - quiet enough for living, working, and occasionally hosting friends. I used to think I needed to save enough to buy outright, but with prices rising so fast, I knew I had to act sooner,” Tran shared.

However, with her current savings, buying an apartment in a major city remains a challenge. Properties ranging from 59m² to 70m² now cost between VND 2.9 and 4.5 billion - a figure that could take young people 20–25 years of income to afford. When considering loan options, Tran prioritized not just low interest rates, but also flexibility: high loan-to-value ratios, long repayment terms, and manageable payments during the early years.

More practical home loan incentives for young buyers

In February, the Prime Minister directed banks to develop preferential credit packages for people under 35. Following this, several banks introduced programs advertised as “super low-interest” loans with rates of 4–5%.

However, many experts and homebuyers noted that these packages weren’t entirely practical, as the promotional interest rates often lasted only 3–6 months before switching to floating rates.

Over the past five months, several banks have revised their policies to better support customers. Most recently, Sacombank launched its "Z Home" loan solution to ease financial pressure for young homebuyers. The program offers fixed interest rates of 6.5%, 7%, or 7.5% per year for 1 to 3 years, loan terms up to 40 years, a principal grace period of up to 5 years, and loans up to VND 10 billion or 85% of the collateral value.

Young homebuyers explore new loan packages at Sacombank.

In Tran’s case, the apartment she wants to buy costs VND 2.9 billion for 59m². With some savings already available, she plans to borrow VND 2.4 billion over 20 years, with monthly payments of about VND 15 million during the first five years. Currently, Tran pays VND 9 million per month in rent for a 35m² studio. Spending an additional VND 6 million to live in a space she owns - and twice the size - is a worthwhile motivation. “Five years from now, I’m not sure I could find a place this size at this price,” Tran shared.

Recent credit incentives have become more practical and supportive of young homebuyers. Fixed interest rates over multiple years, principal grace periods, and long repayment terms help reduce monthly pressures and simplify long-term planning. Additionally, borrowers now only need a minimum of 15% of the property’s value, eliminating the need for years of initial savings. This makes capital more accessible and speeds up the journey toward homeownership.