Fixed vs Variable Rate

Same house. Same loan. €151 more every month.

€100,000 over 25 years, for example:

At 1% a year: €377 a month.

At 4% a year: €528 a month.

With a variable rate, that jump can happen while you are paying.

From 2022 to 2023 the ECB moved its rate from −0.5% to 4%.

Do you know if your loan's rate is fixed or variable?

Education, not investment advice.

Read the sheet as text

Fixed vs Variable Rate.
Two ways a loan's interest can work. Only one of them can change.

Fixed: the rate stays the same. You know every payment ahead. Often a bit higher at the start. €424 every month at 2%.
Variable: the rate follows the market. It can go down, or up. Your payment moves with it. €377 can become €528 if 1% becomes 4%.
2022 to 2023: the ECB's rate went from −0.5% to 4%.

For example: +€151 a month. €100,000 over 25 years: at 1% a year €377 a month, at 4% €528.
Example rates. Variable loans follow a market rate such as Euribor, plus the bank's margin.

Sources (1)

Key ECB interest ratesEuropean Central Bank, current table: the deposit facility rate was −0.50% until 27 July 2022 and reached 4.00% on 20 September 2023. Checked 2026-10-30.