The fixed interest rate of the loan can be changed to a floating interest rate.

A fixed-rate mortgage is a personal housing loan in which an individual and a bank agree when signing a loan contract that the borrower will pay interest at the agreed interest rate within a certain loan period, regardless of changes in market interest rates.

A floating interest rate is an interest rate that can be adjusted periodically during the loan period, and is usually calculated by adding a base interest rate. According to the agreement between the borrower and the lender, one party will make adjustments based on a certain market interest rate at a specified time. The general adjustment period is half a year.

Floating interest rates increase costs due to complicated procedures and diverse calculation bases. Therefore, they are mostly used for loans of more than 3 years and in international financial markets.