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Secure your home with interest rate hedging

If you are taking out a home loan, you should get an interest rate hedge, too. It will keep the monthly payment on your home loan within the agreed limits throughout the hedging period, so there won’t be any unexpected changes to it. Read more about the different interest rate hedges and choose the one that best suits your needs.

Why should you hedge your home loan against rising interest rates?

When you add an interest rate hedge to your loan, you will protect your loan from changes in its reference rate and will no longer need to worry about interest rates rising. The monthly home loan payment is often the largest single expense in a household, which is why it makes sense to hedge against the risks it involves.

It is actually worth locking in an affordable interest rate hedge right now while interest rates are low. This will allow you to continue to enjoy the current low rates in the future, securing the monthly payment on your loan for years to come!

The interest rate cap is ideal if:

  • you want to benefit from low reference rates
  • you want the reference rate of your loan to decrease when interest rates fall
  • you want to make sure that the interest costs of your loan remain in check regardless of the market situation
  • you appreciate the possibility of making changes to your loan repayment schedule flexibly
  • you are willing to pay a fee for an interest rate hedge.

Read more about the interest rate cap

A fixed interest rate is ideal if:

  • you want to know the exact amount of your monthly loan repayment in advance
  • you want to have your interest rate fixed for 3, 5, 7 or up to 15 years
  • your loan amount exceeds 20,000 euros
  • you are ready to pay for the possible penalty fees arising from early repayment.

Please note that you won’t be able to make flexible changes to the loan’s repayment schedule when the interest rate is fixed.

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