Interest Rate Caps, Floors and Collars
Interest Rate Caps, Floors and Collars are option-based Interest Rate Risk Management products.
These option products can be used to establish maximum (cap) or minimum (floor) rates or a combination of the two which is referred to as a collar structure. These products are used by investors and borrowers alike to hedge against adverse interest rate movements.
A Cap provides variable rate borrowers with protection against rising interest rates while also retaining the advantages of lower or falling interest rates.
FAQs about Interest Rate Caps, Interest Rate Floors and Interest Rate Collars - Borrowers.
- Who uses Interest Rate Caps?
- How does an Interest Rate Cap work?
- How much does an Interest Rate Cap cost?
- Over what period can I obtain a Cap?
- Is there a minimum amount for an Interest Rate Cap?
- What happens if I repay my loan early? Can I cancel the Cap?
- Are there any risks associated with an Interest Rate Cap?
- What other information is required?
- How do I arrange a Cap?
- Who uses Interest Rate Collars?
- How does an Interest Rate Collar work?
- How much does an Interest Rate Collar cost?
- Over what period can I obtain a Collar?
- Is there a minimum amount for an Interest Rate Collar?
- What happens if I need to repay my loan early? Can I cancel the Collar?
- Are there any risks associated with an Interest Rate Collar?
- What other information is required?
- How do I arrange a Collar?
- Who uses Interest Rate Floors?
- How does an Interest Rate Floor work?
- How much does an Interest Rate Floor cost?
- Over what period can I obtain a Floor?
- Is there a minimum amount for an Interest Rate Floor?
- What happens if I require my funds early? Can I cancel the Floor?
- Are there any risks associated with an Interest Rate Floor?
- What other information is required?
- How do I arrange a Floor?
Need more information?
If you have any questions or want more information, you can contact us online or call us toll free on 1300 550 244.
Read the Product Disclosure Statement.