Home Loan Interest rate

[Mars]

We have just been approved for our bond and they are offering an interest rate of 9.7%.
I said that seems a little high and they came back now with 9.4% Is that a good rate?

 

[ToxicBunny]

Prime is at 9% atm isn't it?

If so, then either rate is pretty decent, 9.4% is obviously the best.

 

[xrapidx]

How is pime+ decent on a bond?

Tell them you want prime - 0.5%.... shop around.

 

[Mars]

I'll wait and see what the other banks say.

 

[Ancalagon]

What deposit are you putting in? What percentage of the purchase price does your loan value form?

 

[MrR]

I'll wait and see what the other banks say.

Always shop around and don't take the first loan you are offered. A few years ago, I went back and forth with the banks and ended up with an interest rate around 1.3% lower than what was initially offered.

Anything below prime + 0.5% sounds reasonable (more so if you are a first time buyer or credit record not sufficient to profile you).

 

[ToxicBunny]

How is pime+ decent on a bond?

Tell them you want prime - 0.5%.... shop around.

If its a first time buyer, good luck getting anything other than prime + these days....

 

[MickeyD]

So 7.45% is good?

 

[Dolby]

As a first time buyer 3 years back, they gave me prime + 0.2 ... drives me mad!

It should be HALF percent increments!

 

[Napalm2880]

Get a bond originator to do the dirty work for you. You should find you get the best interest rate from your own bank as they have your credit history.

I'm a first time buyer and just applied for a home loan and got prime less 0.5%. So yes it is possible but will depend on your credit history, the size of your deposit etc.

 

[Bargain_hunter]

Get a bond originator to do the dirty work for you. You should find you get the best interest rate from your own bank as they have your credit history.

I'm a first time buyer and just applied for a home loan and got prime less 0.5%. So yes it is possible but will depend on your credit history, the size of your deposit etc.

yeah don't do that. using a bond originator is quite daft. you will ultimately pay for the fee charged by the originator to the bank through a higher interest rate. plus using a bond originator affects your risk profile...

choose two banks that you feel would give you a good rate and approach them directly...

 

[xrapidx]

yeah don't do that. using a bond originator is quite daft. you will ultimately pay for the fee charged by the originator to the bank through a higher interest rate. plus using a bond originator affects your risk profile...

choose two banks that you feel would give you a good rate and approach them directly...

Really? I've seen bond originators get much better rates than some people managed by themselves.

 

[xrapidx]

If its a first time buyer, good luck getting anything other than prime + these days....

You need to bargain better, and be prepared to let the deal for through. I don't accept more than prime on any type of finance.

 

[Mars]

Ok, so thats about the best I'm going to get for now.

We where approved for about a 130% bond because we want to renovate. The house was valued by the bank at R1.8m and we are paying R1.3. We applied for R1.7m.

Once the renovations are complete we can have the house revalued and renegotiate the rate. Apparently there is no way you will get below prime if you are applying for anything above 90%.

 

[SauRoNZA]

If you are getting anywhere remotely within a percentage of Prime then you are scoring a bargain.

Don't buy for a second that you can actually renegotiate the rate (depending on the bank) because it's a cluster**** of throwing your toys to even get 0.25% off.

 

[HavocXphere]

9.4 seems solid to me...

So 7.45% is good?

Was a while back / fixed, no?

 

[xrapidx]

Yeh, if you're going for 130% that's not bad...

 

[ToxicBunny]

You need to bargain better, and be prepared to let the deal for through. I don't accept more than prime on any type of finance.

If you have a decent deposit and such yes you can negotiate... but first time buyers are usually in the 95 to 100% ltv ratio so banks won't negotiate

 

[MickeyD]

9.4 seems solid to me...


Was a while back / fixed, no?

Yes... 15yrs. Variable!

 

[xrapidx]

If you have a decent deposit and such yes you can negotiate... but first time buyers are usually in the 95 to 100% ltv ratio so banks won't negotiate

Like I said, negotiation - also finding the right property to get a decent ltv ratio (these days, that is not difficult). My first property was -1.0% last year when I moved, -1.25%.

Very shortly I'm asking for a revue of that rate.