China
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.
How it works in Vietnam
In Vietnam, a home loan usually starts with a promotional rate fixed for a set number of months. The monthly payment is low and stays the same during that period.
After that the loan switches to a floating rate: the bank’s base rate plus a margin. The monthly payment usually goes up at that point. The calculator shows the payment before and after the switch side by side.
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.
- Base rate
A reference rate each bank sets and publishes for itself. A loan's floating rate is this base rate plus a margin.
- Margin
The fixed part added to the base rate to make the floating rate. The margin is written into the loan contract.
- Loan term
The time you have to repay the loan in full, counted in months or years.
Learn more
- Promo rate to floating rate in Vietnam: what you pay after
When the promotion ends, the bank resets your payment at the floating rate. A worked example on a 2 billion VND loan over 20 years, and what to ask first.