After an extended period of low interest rates, many commercial banks have begun adjusting mortgage terms. Short-term promotional rates have narrowed, while variable interest rates have become less predictable. For borrowers taking long-term home loans of 20-25 years, early-stage interest rate fluctuations can pose financial risks, particularly as buyers also manage ongoing living expenses.
In response, developer (Phu My Hung and Nomura Real Estate Vietnam) and Standard Chartered Bank have launched a loan program for purchasers of Hong Hac City in Bac Ninh Province, 25 kilometers from central Hanoi. Under the arrangement, buyers may borrow up to 75% of the value of the collateral property, with loan tenors of up to 25 years. From now until the expected handover date in June 2027, borrowers will benefit from a grace period on both principal and interest, with a 0% interest rate applied during this phase.
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Nearly 200 guests attended Phu My Hung’s event at the Hong Hac City Sales Gallery on Dec. 20, 2025. Photo courtesy of Phu My Hung |
Following handover, customers will be offered the interest subsidy of 3% on a portion of the buyer’s loan during the first 12 months. During this period, borrowers will pay the remaining interest after the subsidy while repaying principal according to the bank’s repayment schedule. The arrangement is intended to reduce cash-flow pressure during the initial year of full repayment.
Standard Chartered Bank is offering fixed-rate mortgage options under a three-year structure, with interest rates set at 6.9% in the first year, 7.3% in the second year, and 7.4% in the third year. When combined with the developer’s interest subsidy, the effective borrowing rate in the first year after handover is estimated at approximately 4.3-4.4%.
By fixing interest rates during the early years of the loan, borrowers are better able to forecast repayment obligations and manage household finances amid market volatility. The fixed-rate period begins from the first loan disbursement. According to the developer, this approach is intended to support buyers in selecting financing plans aligned with their long-term financial capacity.
A representative of Phu My Hung said the cooperation reflects a shared focus on providing stable and sustainable financial solutions in a changing interest rate environment. Working with an international bank, the company aims to ensure consistent implementation of financial commitments throughout the project timeline.
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Festive decoration clusters at the Hong Hac City project site. Photo courtesy of Phu My Hung |
Hong Hac City is Phu My Hung’s first large-scale urban development in northern Vietnam, covering more than 197 hectares with a total investment of nearly US$1 billion. The project is being developed in cooperation with Nomura Real Estate Vietnam.
Planned as an integrated urban area with a construction density of about 27% and an expected population exceeding 27,000, Hong Hac City is set to benefit from upcoming infrastructure projects, including Ring Road 4, Gia Binh Airport, and key regional transport links.
The development will offer low-rise housing products such as townhouses, semi-detached villas, and detached villas, alongside internal facilities including schools, healthcare centers, commercial services, and green spaces. According to the developer, the first phase of low-rise units has completed legal procedures and received individual pink ownership certificates, supporting mortgage access and long-term financing arrangements.
