How can I make sure that I am getting the best bond interest rate with my bank?

[scannon586]

@hsrl Yes definitely going to negotiate the rate once I've got feedback from the other banks as well, thank you!

 

[outofthemire93]

@scannon586 With a bond originator already submitting your application, you won't be able to approach the banks. Conflict if interest for the Bank, so they won't consider. It's the same at a dealership. I always advise going to all the banks directly yourself (you can do this online or telephonically) - remember that these guys earn a commission for each sale, so going directly saves the bank money, giving you a lot more room to negotiate on rate.

 

[scannon586]

@outofthemire93 I've checked the application and I don't see any clause stating that I can not approach the banks myself. I think I'll try my luck and just check with my bank myself.

 

[rebekahbell]

@scannon586 Use a bond orginiator. Shop around.

 

[scannon586]

@rebekahbell Thank you! Doing exactly this was very helpful in the end!

 

[mariamka]

@scannon586 When we bought 18 yrs ago, I went to every bank myself and just shopped around. We got prime -2.38% - got lucky there!

 

[sharrylee]

@mariamka What was prime then? I guess very low?

 

[scannon586]

@mariamka Wow I wish I could be so lucky I am definitely looking into approaching the banks directly at this point yes.

 

[kempertod]

@scannon586 Of course out a deposit down . You will earn your return for every R100 you put it it the bond. It will lower your interest and payment period dramatically. Spare change ? Put it in the bond!.
To see this effect in real-time play around with numbers on this website : https://www.drcalculator.com/mortgage/old/

I showed my business banker this website, as she was buying a house too , and she was blown away at what a quick difference it can make in the first couple of months of a new bond. You will save indefinitely. (This from someone in the banking sector ??)
Compound interest is a thing , and at high interest rates , you can make it work for you .

Write a motivational letter to your bank and go direct . Know what you want and ask for it . No reason you can’t get prime less 1% if you got history and bank with them already.
Good luck

 

[scannon586]

@kempertod This website it great!! I'm definitely going to spend some time with it. Thank you so much for all the helpful tips