What is a good interest rate on a current homeloan?

[S1ght]

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

My first guess would be to stop me from wanting to move my bond over to another bank?

 

[the eskimo]

Just accepted Prime+0.25 with FNB on a 95% bond. (They initially offered prime+0.7)
ABSA declined on "Poor History" (One bureau reports my Edgars and Telkom Accounts were at some stage 1 month overdue - Maybe I paid late, but I was never in the 30+ days category)
Nedbank declined on poor bureau score
Standard bank initially offered Prime+2 on 80%, and then Prime+3.5 on 95%

I bank with FNB which is why the originator said we were able to negotiate a bit more off the rate.

 

[ProfA]

My first guess would be to stop me from wanting to move my bond over to another bank?

They couldn't care less, I guarantee you. In fact, other banks will probably in all likelihood offer a worse rate. Have never heard of anybody successfully doing this besides about 7-8 years ago when a colleague moved to to SA Home Loans for a better rate, but haven't heard of it since then.

 

[ice_cubes]

whats the maximum bond % will a bank grant if I want to buy a vacant land (free standing residential area) ?

 

[Pitbull]

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.

You putting down a big deposit? They see that as opportunity to rape you. Since the amount financing is lower. Which is a win/win for them as it also mitigates the risk with a big deposit... Skelm moere.

 

[Pitbull]

whats the maximum bond % will a bank grant if I want to buy a vacant land (free standing residential area) ?

On the land 100% but will only give you a second bond once there is a building standing on the property. So you will need to start building part of it before you can apply to have funds to build.