Homeloan Interest Rates

Dolby

Honorary Master
Joined
Jan 31, 2005
Messages
27,066
I remember a few years back that no matter how good your credit rating, your interest rate was going to prime + because of the general economy.

Have things changed and banks a little better ?
 

phoneJunky

Executive Member
Joined
Apr 3, 2009
Messages
5,904
Well, my friend did get prime -1.5 a year or two ago. But he had a rather sizeable deposit.
 

3WA

Executive Member
Joined
Sep 25, 2012
Messages
6,323
Got prime -0.5 in 2016. I would imagine you can still get it - buyers need all the encouragement they can get.
 

Nevar

Well-Known Member
Joined
Jul 16, 2013
Messages
158
Manged to get prime -0.4 about 2 weeks ago . Some of the banks are insane thou giving you prime or prime -0.1 . Shop around .
 

Dolby

Honorary Master
Joined
Jan 31, 2005
Messages
27,066
Thanks.

And going direct vs originator?

The house is mine but I want to shuffle funds around, so I want to raise on my own place. No transfers or anything
 

Lupus

Honorary Master
Joined
Apr 25, 2006
Messages
16,173
2 out of 4 banks offered prime + 0.4, Standard offered prime and FNB offered prime -0.25% so I went with FNB, no deposit.
 

Grubscrew

Expert Member
Joined
Sep 15, 2008
Messages
2,284
We do about 30-40 transactions a month. The average rate is prime + 0.5/1% at the moment. Very few people get prime below.
 

Kosmik

Honorary Master
Joined
Sep 21, 2007
Messages
19,157
Thanks.

And going direct vs originator?

The house is mine but I want to shuffle funds around, so I want to raise on my own place. No transfers or anything
Shop around, direct with who you have a relationship with and originator otherwise. My experience is direct was cheaper but that supposedly bucked the trend.
 

Akafreakazoid

Well-Known Member
Joined
Sep 23, 2008
Messages
299
Got offered prime -0.75 with nedbank if i started banking with them and with 10% deposit.
 

bromster

Expert Member
Joined
Nov 2, 2012
Messages
4,366
50% deposit won't help in getting a lower interest rate because the bank will only have you as a client for a few years. They can't milk you for compound interest for the rest of your working life. Smh

Sadly, the people that scrape together 10% deposit and have to extend the bond to 25 or 30 years get better interest rates because the bank can make money off them for an additional 5 or 10 years.

When applying for any kind of finance, plead poverty until your name is on the dotted line. Then bring out all your hidden money
 

Speedster

Executive Member
Joined
May 2, 2006
Messages
7,811
50% deposit won't help in getting a lower interest rate because the bank will only have you as a client for a few years. They can't milk you for compound interest for the rest of your working life. Smh

Sadly, the people that scrape together 10% deposit and have to extend the bond to 25 or 30 years get better interest rates because the bank can make money off them for an additional 5 or 10 years.

When applying for any kind of finance, plead poverty until your name is on the dotted line. Then bring out all your hidden money ��
Is this based on any sort of actual info, or simply the bit you've formulated for yourself?
 

saturnz

Honorary Master
Joined
May 3, 2005
Messages
12,152
your interest rate was going to prime + because of the general economy.
note quite, its more to do with how much room banks have

so when prime was 13% there was much more room for banks to manoeuvre, but when prime is at all time lows, well then you can't really go lower
 
Top