- The interest rate collar stabilises changes in the reference rates and you can be certain that the reference rate will not increase above the agreed level.
- The interest rate hedge can be taken for a shorter period than a housing loan, as the amount of interest makes the most difference at the beginning of the loan period when the loan principal is high.
- During the validity of the interest rate hedge the reference rate will not exceed the agreed maximum level. If the interest rates fall, the reference rate of your loan may fall to the minimum level of the interest rate collar.
- The bank charges no separate hedging fee for the interest rate collar.