ABN AMRO starts offering interest rate averaging on 30 June 2016
- Housing Market
Jarco de Swart
Sr Press Officer Corporate Affairs, Finance, Legal and Sustainability
On 30 June 2016 ABN AMRO started offering interest rate averaging via Internet Banking. Clients with an ABN AMRO mortgage can now easily see how interest rate averaging will affect them personally and, if they choose to do so, can immediately submit a request for interest rate averaging.
ABN AMRO has developed a special calculation tool for this purpose. After entering their personal mortgage details in the tool, clients will see the costs of interest rate averaging for their specific situation and the benefits for their monthly expenses. The tool will also show the advantages to paying a penalty for buying off the current interest and fixing a new, longer-term interest rate. In practice, this is almost always a less expensive way to gain the security of a low interest rate for a longer period of time.
Interest rate averaging is beneficial for some clients, but it is not necessarily the best solution in every case. This depends on the client’s personal situation and possibilities.