How much you save on a R1 million home loan if you drop the interest rate by 0.5%

[BusinessTech]

How much you save on a R1 million home loan if you drop the interest rate by 0.5%

South African home buyers need to become more aware of the advantages of being offered a lower interest rate when they are initially approved for a home loan, says Rudi Botha, CEO of bond originator BetterBond.

 

[konfab]

What type of idiot doesn't know that getting a lower interest rate is better? Better yet is how a person who doesn't know what interest is is meant to earn about R33 000 a month needed to get a R1m bond?

 

[Mike Hoxbig]

By way of an example, a 0.5% rate concession on a new R1 million home loan will immediately reduce the minimum monthly bond repayment due by some R330 a month – and automatically generate an annual saving of almost R4,000 – without the borrower having to do anything.

In addition to this, it would cut R80,000 off the total amount of interest due over the 20-year life of the bond – again without the borrower being required to take any further action.

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