Homeloan Interest Rates

144Vuma

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Feb 26, 2017
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Who in their right mind will still be buying property in the current environment in SA?
Me! Also just sold a property on 1st show day for full asking price in a buyers market.

Lots of potential in SA property, its just in this current climate and SA consumers debt problems it doesnt look good. Best investors by in a difficult market and make profits years later.
 

Corelli

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Jun 20, 2008
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I got prime from Std Bank, even though I gave 1/3 cash deposit, and paid for all the fees myself.
 

Corelli

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Jun 20, 2008
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But when I sold my property 7 years later, its value increased by 3x. So didnt mind.
 

Lupus

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Apr 25, 2006
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15,421
My prime minus at 9.85 doesn't look so bad now. My first one was 0.75% higher
 

zerocool2009

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FNB has a nice rule .... If you pay 15% in year 1 .... they WILL lower your rate !
 

Thor

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Any banks that still do 30 year bonds?

I think I only saw absa.

Will 30 vs 20 have an effect on the interest rate I can get?
 

beefymoocow

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Jun 19, 2006
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461
No . ... if your bond is R1kk, and you pay R150 000 (and that exclude the deposit), they will gladly review)
But it has to be after two years. I phoned FNB. They refused to review my bond until my bond is older than 2 years. Paid about an extra 40% into my bond so far. Not even sure I will have a bond to pay off in 1 years time.
 

Lupus

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Any banks that still do 30 year bonds?

I think I only saw absa.

Will 30 vs 20 have an effect on the interest rate I can get?
Yes 30 year has higher interest rate as it's longer period so higher risk.
 

WAslayer

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May 13, 2011
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Any banks that still do 30 year bonds?

I think I only saw absa.

Will 30 vs 20 have an effect on the interest rate I can get?
Standard bank offered me a 30 year bond in 2015.. no idea if they still do.. the big difference is that, it lowers your repayment monthly at the same interest rate if over 30 years, obviously paying way more interest..
 

beefymoocow

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Jun 19, 2006
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461
Standard bank offered me a 30 year bond in 2015.. no idea if they still do.. the big difference is that, it lowers your repayment monthly at the same interest rate if over 30 years, obviously paying way more interest..
I don’t see why people won’t choose a 30 years bond if everything is the same except the term. My dads 20 year bond is coming to an end in 8 years time and I would of preferred if it was a 30 year bond. Because his monthly service fee is like R20 but if he has to apply for a new bond it will be R65.

And the interest rate he got was really good at prime minus 1.8 just before the market crashed.

So my advice will be go for a 30 year loan if everything else is the same and just treat it as a 20 year loan and pay extra.
 

Thor

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Jun 5, 2014
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Yes 30 year has higher interest rate as it's longer period so higher risk.
30 years will incure more interest due to time, does not mean it has a highest interest rate my thinking is perhaps they'll go a little below prime as they make it up in the extra decade.
 

bromster

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Nov 2, 2012
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30 years will incure more interest due to time, does not mean it has a highest interest rate my thinking is perhaps they'll go a little below prime as they make it up in the extra decade.
Exactly what I did.

Nedbank offers 30 years, so I took it to get a LOWER interest rate. Then I just paid it off quickly as originally planned.

The bank assumes that they will have you as a client for an extra decade and uses a lower interest rate to attract your business. You're quite correct.
 

calypso

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Feb 10, 2009
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But it has to be after two years. I phoned FNB. They refused to review my bond until my bond is older than 2 years. Paid about an extra 40% into my bond so far. Not even sure I will have a bond to pay off in 1 years time.
They use that 2 year nonsense just to buy time. When you call them back after 2 years they have a new excuse. Money talks and all the banks care about is losing the deal which means you need to go through the effort of getting additional quotes from other banks.
Bring in a cheaper rate and FNB will match on the spot, 2 years or not.
 
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