With having a home loan, a large portion of your monthly income goes towards maintaining your home loan repayment. Wouldn’t it be great to know exactly what your monthly home loan repayments are? This will stabilise your monthly expenses / budget.
You can now fix your interest rate on your Absa home loan for a specified period of time - 1, 2, 3, 4 or 5 years. This would bring the certainty of knowing exactly what your home loan repayments are every month and your home loan interest rate stays the same for a specified period, regardless of whether the home loan rate rises or falls.
- Get protection against rising interest rates.
- Pay regular fixed repayments with no surprises.
- Improve your monthly cash flow management and budgeting since your instalments don’t vary with interest rate fluctuations.
- You choose a Fixed Interest Rate option depending on your financial position and your view on what will happen with interest rates in the coming months.
- Fixed Rate Application Process: An affordability assessment will be conducted on application and you will be required to complete and sign a Fixed Interest Rate variation agreement. You can visit an Absa Branch, closest to you, to assist you with this process. (If your loan was approved before 01 June 2007, you will also be required to complete and sign a new Mortgage Loan Agreement).
- Cancellation of Fixed Interest Rate: Should you decide to cancel your Fixed Interest Rate option (agreement) before the expiry date, your interest rate will revert to the variable interest rate applicable to the main agreement plus an additional percentage interest rate as determined by Absa.
- Expiry of Fixed Interest Rate contract: Once your Fixed Interest Rate contract has expired the following process will be applied:
- Your home loan interest rate will automatically revert to the variable interest rate applicable to the main agreement, on the day after the expiry period.
- You also have the option to re-apply for a new Fixed Interest Rate contract once your fixed interest rate has expired.