Realistic rate for a bond

[bradleycox]

I'm in the process of financing a home, went to as many banks as possible for the best rate. The best so far is prime -0.8. I don't think its bad, but it can be better. What is the best rate I can realistically get. Bond is for R2.5m

 

[resjudicata]

@bradleycox Got -0.82 on R1.8m at FNB. So about right. Once you pay off a chuck they will improve it on request.

 

[aleena]

@bradleycox Take the best offer to your current bank and ask them to beat it or you'll switch banks, works every time. Got - 1.13 a month ago after getting -0.65 initially , the other banks offer was - 1.1 lol.

 

[jpk7742]

@aleena 60% of the time, it works every time

 

[bradleycox]

@aleena That was the plan, but the bond originator feels strongly that she can get a better rate just doing her thing. I think she was annoyed that I went directly to a bank in the first place. I think they aren't allowed to get a second quote from a bank you already applied at.

 

[livefreegirl]

@bradleycox Obviously. Because she’s not getting a piece. I personally avoid middlemen as I have historically always gotten a worse rate through them.

 

[definitecomet]

@bradleycox Back in my day, originators also had an adverse effect on your credit record from the number of inquiries they put on. I don't know if that's still true though.

 

[arrabon]

@bradleycox We got prime -1.42%
Standard Bank gave us an extra - 0.33% off just because I opened a bank account with them.
The best I heard of from my bond originator was prime —2.5%

 

[bradleycox]

@arrabon Thanks for the reply. I had a feeling -0.8 was not the best out there.

 

[arrabon]

@bradleycox We only got this because our term was 20 years.
If we wanted 30 year term they would have dropped the percentage I suspect. It also depends on your credit score, and how much of a bond you are requesting, and how much of a deposit you are putting down.

 

[livefreegirl]

@arrabon Yes. And rinsed you on interest for another ten years.