Finance your Home


Fix the interest rate on your home loan

Would you like the certainty of knowing your home loan repayments are the same every month? With an Absa Home Loan you can fix your interest rate for a specified period of time - 12, 24 or 60 months.


  • You are protected against rising interest rates
  • You can budget and better manage your cash flow, since your instalments don’t vary with interest rate fluctuations

How does it work?

With a fixed interest rate, your home loan interest rate stays the same for a specified period, regardless of whether home loan rates rise or fall. Your monthly instalment therefore doesn’t change during the fixed period.

When your fixed rate contract expires:

  • Your home loan will automatically revert to the prevailing home loan variable rate, the day after expiry
  • You may apply for a new fixed interest rate contract two days before your current fixed interest rate contract expires
  • If you accept the quotation, the new contract will only take effect after the expiry of the old contract and at the prevailing fixed interest rate

If you cancel your bond:

  • The fixed interest rate option will end when you sell your home or when your bond is fully paid up
  • Early termination interest will be levied if you cancel or suspend the agreement
  • We require at least 90 days' written notice of your intention to settle your home loan. Should you not give the required notice, we may charge you the 90 days' interest

If you cancel the fixed interest rate option

A penalty fee will be charged to your account as follows:

  • For 12 or 24-month fixed interest rate options this will be no less than 1% above the variable rate quoted at application, on the outstanding balance for the unserved period, on a pro rata basis
  • For 60-month fixed interest rate options a flat fee of 1% for the unexpired period of the fixed-rate contract will be charged

FlexiReserve option:

  • By depositing extra funds into your Absa Home Loan, over and above your regular repayments, you save on interest and can withdraw your extra funds at a later date for any purpose
  • FlexiReserve is available with 12 or 24-month fixed interest rate options, but is excluded from the 60-month fixed interest rate option


  • If the value of your property has increased or you want to improve your property, you can register a higher amount on your bond and have access to that equity
  • FurtherAdvance is available on all the fixed rate options

Fixing the interest rate of your home loan could be the right choice if you:

  • Prefer regular payments with no surprises
  • Have a limited or fixed income and want to be protected against rising interest rates
  • Are refinancing at a time when interest rates are comparatively low
  • Would like your home loan repayment to remain constant

Contact Home Loans
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Applying for a bond? You can either track the status of your home loan application, or complete your saved application online.

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