Prime vs. CL: the differences that are important to understand before choosing
Comparison between a prime route and a non-linked fixed interest route in terms of interest rate changes, certainty, flexibility and cost.
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A prime route is not linked to the index, but the interest rate changes with the prime interest rate, so the return may increase or decrease. KLC provides a stable nominal interest and return, but is often priced in advance for certainty and may have an early repayment fee. The right choice is usually a combination that suits risk and flow.
Written and professionally reviewed by the Ailon Financing Solutions team
Compare risk and not just interest
Prime provides flexibility and exposure to interest rate changes. KLC buys certainty. A good mix checks how a change in the interest rate affects the entire loan, and what will happen if you want to refinance or pay off early.
use theThe mortgage calculator and inThe comparison tool with the same amount and the same period. Check payment, total cost and change scenario, not just an interest title.
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