Home Loan with a reviewable fixed rate
Do you intend to buy a house, an apartment, a plot of land or to build your own home? ING now offers you an innovative financing solution: the flexibility of variable rate financing combined with the security of fixed rate financing.
What are the advantages of the “reviewable fixed rate”?
The “reviewable fixed rate” is a fixed rate subject to periodical revision that allows you to secure your short or medium-term repayment capacity, whilst still maintaining the flexibility to go back to a variable rate for pre-defined periods in order to benefit from potential market opportunities.
- You are protected in the event of rate increases during your chosen fixed rate period (3, 5 or 10 years).
- You have the flexibility to choose the rate you want: upon expiry of each renewal period, you can either opt for a new fixed rate or change to a variable rate for the next period. This allows you to take maximum advantage of market opportunities.
- You have the freedom to choose without paying additional charges.
- You can change the type of rate for each renewal period.
- You can repay your loan early (fully or in part) without early repayment charges upon expiry of each renewal period.
- You benefit from transparency as regards the rate conditions applied throughout the duration of your contract.
We offer you guidance at pre-defined intervals, and offer you the chance to adapt your rate, taking account of your personal situation and potential market opportunities which may arise during the life cycle of your contract.
For additional information, do not hesitate to get in touch with one of our relationship managers.
How does this work?
This is a tailored package which allows you to keep a fixed rate for 3, 5 or 10 years. At the end of each period, it is you who decides whether to continue with a fixed or variable rate until the end of the next period, and so on. Let’s take the example of a 20-year contract with a review period of five years. At the end of the first five-year period, you kept a fixed rate for the second period. For the third period, you chose to change to a variable rate. For the fourth period, you go back to a fixed rate.
The protection offered to you by a fixed rate during the first period(s) of your contract is substantial. The interest due is actually higher at the start of the contract than at the end. This example is only a hypothetical situation, aimed at demonstrating the potential impact of a rate increase on a housing loan, and in no way binds ING as regards the rate to be applied by ING in the case of an effective increase in rates. In order to obtain a simulation, do not hesitate to use our on-line simulator or to get in touch with one of our advisers.
Often you hear people say: “Anyway, until I have paid off my home loan it’s the bank who owns my house”. But is it true?
It is always the same question that every one of us is asking before signing a home loan with his bank. To gain a more objective overview, let’s analyse them one by one with their respective advantages and disadvantages.
The rate remains fixed for a pre-defined period and, at the end of the period, is subject to a revision. The pre-defined period can vary from one bank to another but is generally 3, 5 or 10 years.