In a non-indexed fixed interest loan, the interest rate is fixed for the entire life of the mortgage and the fund is not linked to the index, therefore the amount of the monthly repayment is fixed. Peace of mind is the most important advantage of this route.
The interest rate in this route is slightly higher than the variable interest rate.
In this route, the monthly repayment is high compared to variable interest, since there is a cost to fixing the repayment. However, in a general calculation throughout the life of the mortgage, this is actually an advantage because the increase in interest rates in the economy will not affect the repayment.
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