Would you like the certainty of knowing your home loan repayments are the same every month? You can fix the interest rate on your Absa home loan for a specified period of time - 12, 24, 36, 48 or 60 months.
With a fixed interest rate, your home loan interest rate stays the same for the specified period, regardless of whether home loan rates rise or fall. Fixing your interest rate is a good option if you are refinancing at a time when interest rates are comparatively low.
- Protection against rising interest rates
- Regular payments with no surprises
- Better budgeting and cash flow management, since your instalments don’t vary with interest rate fluctuations
- You can apply to fix your interest rate on any loan amount
- Your home loan will automatically revert to the prevailing home loan variable rate the day after expiry
- You can 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
- 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
A penalty will be charged to your account. This penalty will be applied on a pro rata basis for the unserved period on the outstanding balance.