China
Base rate
A reference rate each bank sets and publishes for itself. A loan's floating rate is this base rate plus a margin.
How it works in Vietnam
In Vietnam there is no single base rate for home loans: every bank calculates its own and decides when to change it. The loan contract says which base rate applies and how often it is reviewed.
The calculator does not know your bank’s base rate. Add the base rate and the margin, then enter the total in “Floating rate per year”.
Related terms
- Floating rate
The rate a loan pays after the promotional period: the bank's base rate plus a margin. When the base rate changes, the monthly payment changes too.
- Margin
The fixed part added to the base rate to make the floating rate. The margin is written into the loan contract.
- Promotional rate
A lower interest rate, fixed for the first months of a home loan. When the promotional period ends, the loan moves to a floating rate.