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When you apply for a Nedbank home loan, you can choose between Variable and Fixed interest rates.
Your home loan repayments are initially based on a variable interest rate, which is linked to the prime lending rate determined by the South African Reserve Bank (SARB).
When the prime lending rate changes, your home loan interest rate will be adjusted accordingly. This means your monthly instalment could increase or decrease depending on the prime rate changes determined by the SARB.
It is important to put funds aside for an increase in your instalment should the interest rate go up, so that you will be able to pay the higher amount
.If there is a decrease in the interest rate, we recommend that you save the surplus funds for potential increases in the future.
You have the option to fix your interest rate for a set period. Your interest rate will not change during this period, regardless of the prime rate changes from the SARB.
The benefit of a fixed rate is that even if interest rates rise, the interest rate on your home loan will not change, and you will pay the same instalment every month. A fixed rate allows you to budget more effectively. Once the set period expires, your interest rate automatically returns to the variable rate.
You will then have the option to agree to a new fixed rate. Nedbank currently offers fixed rates for 12, 24, 36, 48 or 60 months.
To switch to a fixed interest rate call 0860 555 111.
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