Fixed rates

The main advantage of fixed rate loans is the security they offer: when you take out your loan, you know exactly how much you will be paying back every month and how much your loan will cost. The rate and term of your loan do not change, no matter what happens on the markets. The fixed rate is set for a maximum term of 15 years and in some cases, 20 years. As the Bank has to protect itself from future rate increases, the fixed rate is usually slightly higher than an adjustable rate.

Adjustable rates

The starting adjustable rate is lower than on a fixed-rate loan. Plus you benefit from a rate that is in line with the European Central Bank refinancing rate. If the ECB rate is lowered, the rate applied on your loan is also lowered. However, if the ECB rate rises, you will also see an increase in the interest rate on your loan. The adjustable rate is suitable if you believe that the extra cost of a fixed rate solution is not worthwhile. It also means you can pay back your loan early without incurring a penalty.

Term and amount of your loan

The term of your loan depends on your age, the amount you wish to borrow and your ability to pay back the loan.

Getting your loan

Depending on your plans, it is often helpful to have immediate access to funds or to use the funds as needs arise. For example, when buying a home off-plan, you don't necessarily need access to all your cash. In this case, the money is made available to you in tranches and the interest on the loan as well as the final cost of your project to buy a home will be lower.

Repayments

The typical repayment frequency is monthly, but depending on your income, other repayment options (eg quarterly / annual) may be arranged. As well as this, you may also pay back significant amounts if you like. You may also pay off your loan before the end of the agreed term of your adjustable-rate loan. In the case of bridging loans, it is only possible to pay off the interest on a quarterly basis.