Homeloan Interest Rates

Dolby

Dolby

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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 ?
 
Well, my friend did get prime -1.5 a year or two ago. But he had a rather sizeable deposit.
 
Got prime -0.5 in 2016. I would imagine you can still get it - buyers need all the encouragement they can get.
 
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 .
 
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
 
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.
 
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.
 
Dolby said:
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
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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.
 
Grubscrew said:
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.
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Yea that's what I thought may be the case
 
Got offered prime -0.75 with nedbank if i started banking with them and with 10% deposit.
 
We got 100% bond and 7.9% interest from ABSA last November.
 
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
 
bromster said:
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 ��
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Is this based on any sort of actual info, or simply the bit you've formulated for yourself?
 
Dolby said:
your interest rate was going to prime + because of the general economy.
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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
 
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