Home Loan Interest rate

That was 2010... the banks are being monumental hard asses about things now.

I bought in 2010 and am Prime - as well.
 
surface said:
Only a Bank employee would get such rates IMO.
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Or rich dad ;)

There are so many aspects that need to be taken into account when applying for a home. property valuation, credit rating, deposit, interlending rate between banks, etc. Currently, the rate is between -1% and +1% of prime, but when things were going well in the middle 2000s, prime -2% was achievable. Unfortunately, due to laws and macro-economic climate, the interest rate contingency is now limited.
 
Out of interest: how often should you try to renegotiate the interest rate? And how does one go about it?
 
I tried recently to renegotiate with FNB (on prime -1.1, 90% loan, 3 years down the line) and they said sorry...

I would try to switch, but it so much hassle to fill in all those forms...
 
jano said:
I tried recently to renegotiate with FNB (on prime -1.1, 90% loan, 3 years down the line) and they said sorry...

I would try to switch, but it so much hassle to fill in all those forms...
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Was told the same, also going on 3 years. The consultant even suggested that switching was my only option at the time, i.e. take my business elsewhere, but it's so damn expensive that I haven't considered it again.
 
jano said:
I tried recently to renegotiate with FNB (on prime -1.1, 90% loan, 3 years down the line) and they said sorry...

I would try to switch, but it so much hassle to fill in all those forms...
Click to expand...

Had the same issue with Nedbank, they flat out told me they don't negotiate the rate at all.
 
I got offered 10.7 by Standard Bank.. after I had been dealing with them for more than 20 years. SA Home Loans offered me 9.6 after a half hour conversation on the phone.. go figure. Eventually went with FNB who offered me 8,9.. but mostly coz my bro works there.
 
KingBel said:
I got offered 10.7 by Standard Bank.. after I had been dealing with them for more than 20 years. SA Home Loans offered me 9.6 after a half hour conversation on the phone.. go figure. Eventually went with FNB who offered me 8,9.. but mostly coz my bro works there.
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Same with me. So I switched from Std to FNB, who gave me prime -1.3%, as long as I made FNB my main banking account, ie my salary goes there every month.
Std lost out big time, and this after I had been a premium client for more than 10 years.
 
There's definitely no loyalty points in banking (not talking about rewards systems like ebucks)
 
Colleague recently applied for a home loan. Seems the banks are currently only giving 90% loans if you already have a home loan with them. New buyers can get 100% from what he was told.

Interest rates I don't know about though.
 
Dolby said:
As a first time buyer 3 years back, they gave me prime + 0.2 ... drives me mad!

It should be HALF percent increments!
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I also got prime +0.2% a month ago, I'm happy with what I was offered. The other bank offered me prime +1.25%.
 
Mike Smit said:
I pay a flat 6% :)

/Whispers... Perk cause wifey works at the bank.
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Yep. Prime -2.5 here too as regulated. Its called the FBT rate, or Fringe Benefit Tax rate and is the most the bank can offer employees. Makes a big difference and is one of the reasons I don't plan on leaving my current employer for some time. Those benefits add up over time.
 
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