Home loan rates ??

[Rhino]

So, I have 2 home loans with Standard bank. Both are for investment properties. I just received the notice for the .5 rate drop and my new rates. 1 is at 7.10% and the other is 6.90% interest i'm paying.

I am trying to find out what the average is these days - given that the prime rate is 8.5%

This may sound like a stupid question, but keep in mind that I don't live here year round as I work overseas and I am only back for a few weeks at a time.

Anything you can tell me - either good or bad - would be appreciated.

 

[Messugga]

Errr... I don't see a question?

 

[Rhino]

"I am trying to find out what the average is these days - given that the prime rate is 8.5%"

 

[Messugga]

"I am trying to find out what the average is these days - given that the prime rate is 8.5%"

Oh, right. Pretty much prime or prime +0.5. The days of getting well below prime are long gone I'm afraid. If you're lucky you'll get up to prime -1, but that's pretty rare from what I gather.

 

[SinghDude]

@ OP

You have done well to secure such good rates.

Prime - is hard to come by these days.

 

[Speedster]

So, I have 2 home loans with Standard bank. Both are for investment properties. I just received the notice for the .5 rate drop and my new rates. 1 is at 7.10% and the other is 6.90% interest i'm paying.

I am trying to find out what the average is these days - given that the prime rate is 8.5%

This may sound like a stupid question, but keep in mind that I don't live here year round as I work overseas and I am only back for a few weeks at a time.

Anything you can tell me - either good or bad - would be appreciated.

What you have there (prime less 1.4% and prime less 1.6%) is very good.

 

[Rhino]

Given that I have 2 already, if I apply for a 3rd, will they take the existing rates into account ? Or do they not place any weight on it ?

 

[SinghDude]

Dependant on credit profile.

If you are over-indebted there is no guarantee of a good rate.

 

[Rhino]

Dependant on credit profile.

If you are over-indebted there is no guarantee of a good rate.

Actually, on that note. The credit reports you can get online. Are those an accurate reflection of your credit profile ?

 

[Rhino]

I get them from credithealth.co.za

 

[Rhino]

My last XDS score was 931 in June.

 

[czc]

It's good dude, I got Prime last year.

 

[^^vampire^^]

Just applied for a bond. ABSA gave me Prime - 0.5% and FNB gave me Prime.

 

[ToxicBunny]

You will be lucky to get Prime these days, even if you have 100 bonds with the bank at Prime -2%

 

[Dr Who]

If you clever you can just keep rolling the existing bonds and possibly keep the low interest rates.

 

[Speedster]

If you clever you can just keep rolling the existing bonds and possibly keep the low interest rates.

This would be your best bet. Maximise the loan amount on your existing loans and use that cash to buy the property. If nothing else it'll decrease the amount you need to loan on the new loan, which will help in obtaining a better interest rate.

 

[noxibox]

Given that I have 2 already, if I apply for a 3rd, will they take the existing rates into account ? Or do they not place any weight on it ?

None whatsoever.

This would be your best bet. Maximise the loan amount on your existing loans and use that cash to buy the property. If nothing else it'll decrease the amount you need to loan on the new loan, which will help in obtaining a better interest rate.

Seems to make little positive difference these days.

 

[Rhino]

I applied for another loan this morning. The same amount as the other ones. Lets see what they come back with.