Repayment methods

Equal payments is a good option if you want to know exactly when the loan period ends and if your repayment ability can withstand a potential rise in interest rates.

When you choose equal payments as your home loan repayment method:

• All your monthly payments will be equal at the beginning of the loan period. Your monthly payment includes both the instalment and interest.
• The repayment will only change if the interest rate changes.
• Initially, the proportion of the instalment is small, but it increases during the loan period as the proportion of interest decreases.

Equal instalments is the best choice for you if you want to make larger payments at the beginning of the loan period.

• The instalment is always the same, but the monthly payment varies based on the interest: If the reference rate rises, the monthly payment increases; if the reference rate decreases, the monthly payment decreases.
• If the interest rate remains the same, the proportion of interest decreases as the loan principal decreases.

Fixed equal payments is a fitting option if you want to know the exact size of your monthly payments well into the future, and the duration of the loan period is not as important.

• All your monthly payments will be equal.
• If the reference rate rises, the loan period is extended, and if the reference rate falls, the loan period shortens. 
• The monthly payment is always at least equal to the amount of interest.
• If the interest rate level is very low at the time you draw down the loan, a rise in interest rates may extend the loan period unreasonably, slowing down the amortisation of the loan. In such an event you should contact us and agree on a new repayment plan.