An annuity loan means that you repay the loan in an equal amount every month until the loan is paid down – and this is the most common form of loan. At the beginning, the instalment part is small, while the interest rate part is large. Gradually, the instalment share increases, while the interest part decreases. Because you pay the same amount every month, annuity loans make it easier to keep track of your finances. If the interest rate changes, the monthly amount also changes, but that’s the same for all loans – unless you choose to fix the interest rate.