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 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 to the loan's repayment schedule
  • you do not wish to pay separate fees or cancellation costs.

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Interest rate cap suits you if...

  • you want the reference rate of your loan to decrease when the interest rates fall
  • you want to prevent the reference rate of your loan from rising above a certain level when the interest rates rise
  • you appreciate the possibility to make flexible changes to the loan's repayment schedule
  • you are willing to pay a fee for an interest rate hedge.

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Fixed interest suits you if you want to know the amount of the monthly payment in advance

  • You can fix the interest of your loan for 3, 5, 10 or 15 years.
  • After the fixed interest period, the reference rate will be the Prime rate, but you can exchange it free of charge for the 12-month Euribor if you want.
  • If you repay the loan prematurely during the fixed interest period, you may be charged early closure fee.
  • You will not be able to make flexible changes to the loan's repayment schedule when the interest is fixed.