What is a good interest rate on a current homeloan?

[Rocket-Boy]

Random thread I know and some other stuff has been covered recently.
Im buying a 2nd property, the first one is paid off but I still have the bond open.

So when I bought my first property I was given prime -1.4%
Now I know things have changed substantially since I took that bond(6 years ago) and my financial situation is also much better. On the new bond I have applied for Im being offered a rate of 10%.
Now I cant tell if that is decent, there are so many different rates when I try and check with the reserve bank rates.

So what is the prime lending rate currently and would 10% be a decent rate with the current market?

 

[b_crazy]

0%

 

[ice_cubes]

9.25% is the current lending rate

 

[Rocket-Boy]

9.25% is the current lending rate

Ahh good stuff, thanks for that.

 

[Awesum]

I would push for below prime.

 

[supersunbird]

Random thread I know and some other stuff has been covered recently.
Im buying a 2nd property, the first one is paid off but I still have the bond open.

So when I bought my first property I was given prime -1.4%
Now I know things have changed substantially since I took that bond(6 years ago) and my financial situation is also much better. On the new bond I have applied for Im being offered a rate of 10%.
Now I cant tell if that is decent, there are so many different rates when I try and check with the reserve bank rates.

So what is the prime lending rate currently and would 10% be a decent rate with the current market?

-1.4 is good, so why don't you just redo the finance of the currently open bond. Less costs. Its against your current property and you buy the new one with that cash.

 

[bokdrol]

Mine is currently 7.25%. I don't know why.

 

[kdub]

Mine (which is a new bond - a few months old) is now 8.15%. I would definitely go with what supersunbird is suggesting.

 

[Pearson6]

I am on Prime minus 2.5%

 

[Wyzak]

Anything under prime these days is good, but get quotes from all the banks and play them up against each other.

All four big banks + SA homeloans

 

[ProfA]

I am on Prime minus 2.5%

Mind sharing what your secret is?

 

[Rocket-Boy]

-1.4 is good, so why don't you just redo the finance of the currently open bond. Less costs. Its against your current property and you buy the new one with that cash.

The problem is that the old bond is quite a bit smaller than the new one will be.
What I can do to lower cost is to pull a big chunk out of the old bond to lower interest on the new one.
The one one is with Sa homeloans who seems to use JIBAR rather than PRIME. PRIME is around JIBAR+3.5% atm and they are offering me JIBAR+3.9%

I cant understand why I would have got prime -1.4% last time as a first time buyer earning substantially less than I do now and this time I would essentially be getting prime+.75%
Makes no sense.

 

[MagicDude4Eva]

Random thread I know and some other stuff has been covered recently.
Im buying a 2nd property, the first one is paid off but I still have the bond open.

So when I bought my first property I was given prime -1.4%
Now I know things have changed substantially since I took that bond(6 years ago) and my financial situation is also much better. On the new bond I have applied for Im being offered a rate of 10%.
Now I cant tell if that is decent, there are so many different rates when I try and check with the reserve bank rates.

So what is the prime lending rate currently and would 10% be a decent rate with the current market?

I would do the following (unless you get a cheaper interest rate with the new bond) - most banks allow this : Do not pay off your first bond, take out an accessbond (this also assumes that your accessbond would cover the new house) and then use the money drawn to pay off the property immediately. (I was lucky when I took out my bond at prime - 2.5% and am hanging onto that bond for dear life - lol).

 

[Schizoid29]

I cant understand why I would have got prime -1.4% last time as a first time buyer earning substantially less than I do now and this time I would essentially be getting prime+.75%
Makes no sense.

I'm in a similar situation. Bought my first place ~6yrs ago and got prime-1.5%. Bond was fully paid off. Bought a new place recently and only got prime. I suspect that the difference may be due to getting the first place before the 2008/9 financial crises when the banks may have been less risk averse.

Anyway, I transferred all the available money from the access bond on the first place to the new one and topping off the difference with some money I had in shares. So now I need to pay off the first (lower rate) bond again, but since I intend on renting the place out, the interest payments become tax deductible.

 

[HavocXphere]

Prime - 1% or 2% used to be respectable but things have tightened up a bit so if you can get on the right side of prime then its decent.

 

[D4N]

Mind sharing what your secret is?

Probably this:

Anything under prime these days is good, but get quotes from all the banks and play them up against each other.

All four big banks + SA homeloans

 

[Komodo]

SA homeloan demands 10% deposit, Absa requires 15% deposit and Standard Bank requires 10% deposit as a rule.

Only FNB and Nedbank will consider giving 100% loans at this point in time.

 

[S1ght]

Is it possible to renegotiate your current bond rate?

 

[Rocket-Boy]

I'm in a similar situation. Bought my first place ~6yrs ago and got prime-1.5%. Bond was fully paid off. Bought a new place recently and only got prime. I suspect that the difference may be due to getting the first place before the 2008/9 financial crises when the banks may have been less risk averse.

Anyway, I transferred all the available money from the access bond on the first place to the new one and topping off the difference with some money I had in shares. So now I need to pay off the first (lower rate) bond again, but since I intend on renting the place out, the interest payments become tax deductible.

That is exactly what I am doing. First place will be rented out so I will get that bond up as much as possible for tax purposes and lower the one I will be living in.
I chatted to some people who work in the industry and they recon just getting prime is decent at the moment.
The fact that they are willing to let me leave my other paid up bond open makes it a decent enough offer.

 

[ProfA]

Is it possible to renegotiate your current bond rate?

no. Why would the bank want to lower the interest rate and thus make less profit on an agreement you signed?