Interest rate hedging makes life secure
You should consider securing the repayment of your loan already when you are applying for it. Market interest rates may fluctuate significantly, but you can avoid surprises by hedging your interest.
An interest rate hedge may cover 3 to 15 years, depending on your needs. The hedge may be valid for a shorter period than the loan, as the amount of interest makes the most difference at the beginning of the loan period when the loan principal is large.
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.
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.
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 on housing
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.