CAP Rate

Protect yourself against rising interest rates by capping your interest rate to control your monthly repayments.

What is the CAP product?

The CAP product is similar to an insurance policy.  You pay a once-off premium to protect yourself against the impact of future home loan interest rate increases, so it’s an ideal way to lock in low interest rates.

The basics of how the CAP product works

By CAPing your interest rate at 1% or 2% above your current home loan interest rate, your home loan interest rate will not go above your selected CAP rate for 2 years, however your rate will still go down when home loan interest rates decrease.

What happens when interest rates change?

When interest rates rise above the selected CAP rate, your instalment will increase in line with the rate increase. However, any interest paid in excess of your selected CAP rate will be immediately refunded to you. This refund will go into your debit order account or into your home loan – whichever you choose.

What does it cost?

You don’t have to outlay money to buy CAP, you may access available funds in your home loan to pay this once-off premium. The premium will be determined by the size of your home loan balance as well as your decision to CAP at either 1% or 2% above your current rate.

Call 0861 888 444 and talk to a consultant who’ll explain the options for you.

Terms and conditions apply to all products. The availability of lending products is subject to our credit policy as amended from time to time.