Interest Rate Types
The interest rate type is one of the most important criteria when choosing a mortgage. It determines how much you'll pay monthly and how predictable your payments will be throughout the loan term.
Fixed rate
The interest rate stays the same for the entire loan term. This provides maximum predictability — you know exactly how much you'll pay each month, making family budget planning easier. Fixed rates are usually slightly higher than variable rates at the time of signing.
Variable rate
The rate changes periodically based on the RDNA index (Annual Nominal Interest Rate), set by the National Bank of Moldova. When RDNA drops, your rate drops; when it rises, your rate rises. Variations may also depend on other factors: your credit history, whether you receive your salary on the bank's card, or the loan amount.
Mixed rate
Combines both types: an initial period (usually 12-24 months) with a fixed rate, after which the rate becomes variable. It provides stability at the start, when home purchase expenses are highest, and flexibility afterwards.
How to choose the right type?
Choose a fixed rate if you want constant, predictable payments throughout the loan term.
A variable rate may be more advantageous for 5-10 year loans, where the risk of fluctuation is lower.
A mixed rate offers protection in the early years and potential savings later if reference rates decrease.
Compare the Annual Percentage Rate (APR) across offers — it includes all costs, not just the nominal interest rate.
Practical example
For a 500,000 MDL loan over 20 years: with a fixed rate of 9%, you pay ~4,500 MDL/month consistently. With a variable rate of 8% (RDNA + margin), you pay ~4,180 MDL/month initially, but the payment may rise or fall depending on RDNA changes. With a mixed rate of 7.9% fixed (24 months) then RDNA + margin, you get stability for the first 2 years, then the rate adjusts.
Tip
If you choose a variable rate, calculate your budget assuming a 2-3 percentage point increase from the current rate. This way, you'll be prepared for potential RDNA increases.