Fixed interest or variable
Two types of indexed property loans are offered by LSR. On the one hand, there are loans with interest rates that are fixed throughout the loan period, and on the other hand, there are loans with variable interest rates that are reviewed every 36 months but remain unchanged in between.
Fixed interest rates for the duration of the loan period provide more stability in the installments, because the loan interest will not change in line with the general trend of interest rates during the repayment period of the loan. The only change in installments will be due to inflation trends.
When taking out a loan with a variable interest rate, the interest rate is changed every 36 months. Various economic factors are taken into account when deciding on variable indexed interest rates for LSR. Thus, the interest rate can either rise or fall during the loan period, and fluctuations in installments are usually greater than on loans with fixed interest rates throughout the loan period. All interest rate changes are announced on the fund's website.
Development of interest rates on property loans
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Until 15 January, 2019, LSR offered indexed loans with interest rate revisions four times a year. These loans are no longer available when taking out new real estate loans, but the interest rates of such loans that were taken out at the time may change at the beginning of January, April, July and October each year.
The interest rate on these loans is currently 3.8%, but will change to 4.1% on January 1st, 2025.
Development of interest rates on older variable indexed loans