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Like most things, there are pros and cons when deciding between Fixed and Floating (or variable) interest rates.
You can choose between floating (variable) or fixed term GlobalPlus Home Loan interest rates and earn 1 Airpoints Dollar per $1,000 of average home loan outstanding per annum, which are rewarded monthly (around 150 Airpoints Dollars per annum on an average outstanding balance of $150,000). To make it easier to decide which is best for you, we've listed out the differences below.
GlobalPlus Home Loan with a Floating (Variable) Interest Rate
About Floating Interest Rates:
Floating interest rates move up or down depending on market conditions.
| Advantages Of: |
Some Disadvantages: |
- Flexibility - able to repay at any time with no penalties on repayments
- Progressively making partial drawdowns over time
- Paying less interest when market rates go down
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- Uncertainty - especially where future interest rate increases are concerned
- Paying more interest when market rates go up
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GlobalPlus Home Loan with a Fixed Interest Rate
Choose between fixed rate terms from 6 months to 7 years.
About Fixed Rates:
Interest stays fixed for the life of the fixed term.
| Advantages Of: |
Some Disadvantages: |
- Interest rate certainty
- Your nominated repayments do not change for the fixed term, which allows you to budget for the period
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- No Flexibilty – you are locked into the rate for the fixed term period
- Potential charges if you repay early and interest rates have gone down
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Click here for current BNZ interest rates.
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