Negotiating interest rates with banks

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Spitshot

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Hi Everyone,

Has anyone had luck trying to negotiate interest rates with banks in South Africa. I have had a loan with a bank now for 3 years and I want a better interest rate. In the good old days one could go and sit with a bank manager and negotiate. Is there any way of negotiating these days with any of the banks for a non business account?
 
Get a quote for a loan from another bank and then use this to request an adjustment of the interest rate with your bank. If they don't give it, then you can probably just take out the loan with the better rate and pay off the other one, assuming there aren't any penalties for it.
 
I think SA Homeloans can also help you to move your bond from a bank to them
 
The banks decide their rates on algorithms, and the manager has very little leeway, and will need to justify it if he goes against the "system". It's possible but not likely, and will be a very small difference.
 
In the first four or so years of my home loan I managed to get a consolation prize of 0.25% off every year but then last year I tried again and Nedbank simply stated they no longer negotiated. I made a huge fuss about it and was told I would be contacted by a senior party...still waiting.

So the only way to do it now is go to a competitor and get a better quote and then either move your loan there or then get your own bank to jump.

It does cost a fair bit of money to move it though, but often it's still worthwhile.
 
Another reason for that personal banker.

I've been able to negotiate better rates on two of my credit facilities. I drop her an e-mail, telling her to please quote me a better interest rate, usually with a small little motivation, e.g. "I paid off my credit card last month, please give me a better interest rate, seeing as I'm a responsible debtor, blah blah".

They base the rate very heavily on your usage of said facility. If you hardly use it, chances are you won't get better rate, because they won't make money off of you. If you've been paying it like clockwork, you might get a better rate.
 
As stated in another thread.

I asked for a rate reduction 6 months into my bond and was successful, I asked for another reduction 6 months after that and was also successful. Total reduction in the interest rate of 70 basis points.

If your credit score improved over the period of the loan, they may be willing to come down with their rates.
 
Awesome so their is hope. I will contact my banker. I ask for reductions in my premium for insurance all the time and it works. Just never tried with banks.

Has anyone had luck reducing their personalised rate at FNB?
 
Spitshot said:
Awesome so their is hope. I will contact my banker. I ask for reductions in my premium for insurance all the time and it works. Just never tried with banks.

Has anyone had luck reducing their personalised rate at FNB?
Click to expand...

I had my home loan rate reduced by 70 basis points by FNB.
 
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