Earlier in 2018, Tanger's JV that owns the outlet centre in Charlotte, North Carolina completed a 10-year USD100.0m mortgage loan with a fixed interest rate
of an estimated 4.3%.
Should the owner ride the rising interest rate tide and refinance at the end of its fixed interest rate
period at 7 to 8 percent or should the owner refinance the loan now, while the rate may be 5.5 percent and lock it in for a five- or 10-year period?
In case of EvoSupersmart loans, the customers pay monthly instalments with a fixed interest rate
during the initial promotion period.
Lenders will also be required to increase the portion of fixed interest rate
loans in order for households to be prepared of possible rate hikes.
The bonds were issued simultaneously in two series: the Series A bonds due on 2021 with a fixed interest rate
of 5.205 percent per annum, and the Series B bonds due on 2026 with a fixed interest rate
of 6.100 percent per annum.
The analysis uses a 30-year fixed interest rate
of 4.46 percent for homes purchased in Q4 2013, and a 3.35 percent 30-year fixed interest rate
for home purchased in Q4 2012.
The five-year bond was rated investment grade BBB- with a Positive Outlook by Capital Intelligence and was issued in fixed and floating rate tranches of which, one will pay a fixed interest rate
of 5.75 per cent per annum, while the second tranche will pay a floating interest rate of 3.25 per cent over the CBK discount rate, provided that the rate shall never exceed 1 percent per annum over the fixed rate for the fixed tranche.
"A fixed interest rate
loan is a straightforward retail product whereby a rate of interest for your borrowing is agreed for a fixed period of time," Mr James said.
According to the REIT, the loan carries a fixed interest rate
of 4.90% per annum, with principal and interest based on a 30-year amortization.
PT Bank Central Asia Tbk (BCA), the country's largest private bank, offer a fixed interest rate
of 8% on KPR for 55 months with credit of at least Rp250 million.
The notes have a variable interest rate and a fixed interest rate
of 4.27% on average, which is below the interest rate of the bond that Stada has issued as another refinancing option.