Homeloan Interest Rates

McGuywer

Executive Member
Joined
Jun 28, 2006
Messages
6,612
How long can you fix your home loan interest rate? From what I have seen from the major banks, you can only do it for 5 years of the loan.
 

Jehosefat

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May 8, 2012
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1,383
How long can you fix your home loan interest rate? From what I have seen from the major banks, you can only do it for 5 years of the loan.
That's about the max that I have seen. But there usually isn't much point since the fixed rate is normally about 2-2.5% above the floating rate that they would charge you from day 1.
 

beefymoocow

Expert Member
Joined
Jun 19, 2006
Messages
1,007
So I contacted FNB asking them about fixing a bond ...

The prime lending rate is currently 7.25%
My bond is prime less 0.75%

The results of fixing my bond:
7.80% -> 60 months
7.35% -> 48 Months
6.95% -> 36 months
6.65% -> 24 Months
6.55% ->18 Months
6.50% ->12 Months
Not bad. If you renting the property out and have a flexi bond. You can profit quite nicely if you fix the rate take the cash and put it in African 5 year fixed deposit at 10.25%. Easy 2% gain. And if you renting your property out that’s like another 4%
 

Grubscrew

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Joined
Sep 15, 2008
Messages
2,421
So I contacted FNB asking them about fixing a bond ...

The prime lending rate is currently 7.25%
My bond is prime less 0.75%

The results of fixing my bond:
7.80% -> 60 months
7.35% -> 48 Months
6.95% -> 36 months
6.65% -> 24 Months
6.55% ->18 Months
6.50% ->12 Months
Well since the house never loses, that should give you an indication of what the banks are thinking the interest rates are going to do.
 

L-Dog

Expert Member
Joined
Oct 25, 2017
Messages
1,175
So I contacted FNB asking them about fixing a bond ...

The prime lending rate is currently 7.25%
My bond is prime less 0.75%

The results of fixing my bond:
7.80% -> 60 months
7.35% -> 48 Months
6.95% -> 36 months
6.65% -> 24 Months
6.55% ->18 Months
6.50% ->12 Months
Very good deal, would probably fix for 36 or longer (What type of loan do you have?)
 

PsYTraNc3

Expert Member
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Jan 4, 2012
Messages
3,225
So would fixing an interest rate for the longest time possible be the best thing to do right now?
I am in the market and hoping to apply for finance in the next few months.
 

beefymoocow

Expert Member
Joined
Jun 19, 2006
Messages
1,007
So would fixing an interest rate for the longest time possible be the best thing to do right now?
I am in the market and hoping to apply for finance in the next few months.
Na not yet. There still room for a rate cut in the coming months. It’s always safer not to fix it.
 

zerocool2009

Expert Member
Joined
Sep 4, 2009
Messages
4,592
Read 2 articles today.... more rate cuts on the cards

The only thing that I dont like about fixing a rate... you totally lose your flexi leg

Personally for me, you can score and save much more using your flexi smartly
 

hj2k_x

Honorary Master
Joined
Jan 22, 2006
Messages
31,222
Read 2 articles today.... more rate cuts on the cards

The only thing that I dont like about fixing a rate... you totally lose your flexi leg

Personally for me, you can score and save much more using your flexi smartly
When is the next meeting at which rate cuts are proposed meant to happen? Are they normally every 3 months?
 

Sinbad

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Joined
Jun 5, 2006
Messages
72,429
I just fixed my car loan rate...can't see rates staying this low for more than a year or two
 

richjdavies

Senior Member
Joined
Sep 9, 2013
Messages
936
Not bad. If you renting the property out and have a flexi bond. You can profit quite nicely if you fix the rate take the cash and put it in African 5 year fixed deposit at 10.25%. Easy 2% gain. And if you renting your property out that’s like another 4%
You can... but if African goes pop [again], you'll still owe the money!
 

hj2k_x

Honorary Master
Joined
Jan 22, 2006
Messages
31,222
I just fixed my car loan rate...can't see rates staying this low for more than a year or two
Did you refinance your existing deal with the finance house, with them agreeing to change from flexi to fixed?

My challenge is that I fixed my car loan when the rates were high, and got prime plus 1 at that stage :(
 

Kosmik

Honorary Master
Joined
Sep 21, 2007
Messages
20,988
Did you refinance your existing deal with the finance house, with them agreeing to change from flexi to fixed?

My challenge is that I fixed my car loan when the rates were high, and got prime plus 1 at that stage :(
Look at refinance with another provider even and have it switched, banks are hungry for business.
 
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