A variable interest rate is a fluctuating rate linked to the prime lending rate, as set by Absa from time to time. If interest rates change, so do your monthly repayments. By default, your Absa home loan will have a variable interest rate.

Interest rate

Variable interest rate fluctuates with the prime lending rate.

Qualify for a rate discount

You may qualify for a rate discount on the bank’s mortgage lending rate.

Switch rate options

You can switch from this rate option to a fixed rate option at any time.

How to get it and what you can expect

  • What you get

    Choosing a variable interest rate is a good option if you think interest rates will be dropping in the short to medium term.

    • An interest rate based on your personal risk profile and the property details.
    • An interest rate that fluctuates with the prime lending rate.
    • The ability to switch from this rate option to a fixed rate option at any time.
       
  • How does it works

    Any fluctuations in the bank’s mortgage lending rate would influence this interest rate option.  You can switch from this rate option to one of the fixed rate options at any time.

    • The variable interest rate is a fluctuating interest rate, which is linked to the bank’s mortgage lending rate as it changes from time to time.
    • Any fluctuations in the bank’s mortgage lending rate would influence this interest rate option.
    • You can switch from this rate option to one of the fixed rate options at any time.
    • You may qualify for a concession (a rate discount) on the bank’s mortgage lending rate, such concessions will be based on your portfolio with the bank, income, the loan size and the amount of the loan relative to the value of the property.
    • A concession could be negotiated when we provide you with a quote on your new home loan and /or Further Advance application.

    This is the default interest rate option available on:

    You may qualify for a concession (a rate discount) on the bank’s mortgage lending rate, such concessions will be based on your portfolio with the bank, income, the loan size and the amount of the loan relative to the value of the property. A concession could be negotiated when we provide you with a quote on your new home loan and /or Further Advance application.

    Once you’ve taken out your initial home loan for the repayment term that you can afford, you should review your bond arrangements often. Aim to shorten your repayment period at a future date, as this will save you interest.

    Related or alternative product

Need more help?

Let one of our consultants help you get the best home loan for your needs.

Call us on:

0860 111 007

E-mail us at:

home@absa.co.za

Visit your nearest branch