Interest rate hedging alternatives
Interest rate collar suits you if:
- you want to ensure that the interest expenses on your loan stay within certain limits
- you appreciate the possibility to make flexible changes in the loan's repayment schedule
- you do not wish to pay separate fees or cancellation costs.
Interest rate cap suits you if:
- you want to choose a short reference rate
- you want to secure at least part of your loan against rapid changes in the reference rate.
Fixed interest suits you if you want to know the amount of the monthly payment in advance.
- It is recommendable to fix the interest on half of the loan amount and to boost hedging with an interest rate cap or interest rate collar, if necessary.
- You may have to pay cancellation costs.
Advice Block title
With the right interest hedging products, you can protect your finances even when market interest rates change drastically.
FlexiPayment gives you leeway for your monthly loan repayment. Another alternative is to extend your instalment-free period. See which one suits you better.