Posted on Aug 2, 2018
Grey Property and Realty Services
Repricing period, also referred to as cycle, tenor, or fixing period, is the period for which the interest indicated will apply. After this period interest rates will be repriced, to either go up or down depending on economic factors prevailing at the time of repricing. You probably have noticed that the longer the repricing period, the higher the interest rate which, at initial glance, could be a disadvantage for you. However, choosing a longer repricing period offers you the protection of having a fixed rate, regardless of any fluctuations, particularly upward movements, due to economic conditions. We advise that you consider and weigh all the factors that could affect rates in the future and strike a balance between paying a higher fixed interest rate as against hedging your bets for better and lower rates in the future.