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.

 

[biblenewsfeed]

@bradleycox If I can ask, if this is your first bond -0.8 isn’t bad. I have -2 but I’m 45 and have had 6 bonds, that plays a role allso.

 

[kevin_67]

@bradleycox The best out there depends hugely on your personal situation, the property and risk profile. 0.8 might be your best, or it might not but you can't use someone random as a bench mark.

 

[magdaleen]

@bradleycox Also try SA HOME LOANS

 

[thewolfmotheracolyte]

@bradleycox No one mentioning that it depends on your credit score and the loan percentage?
You’ll get a better rate with a larger deposit.

 

[rr1111]

@bradleycox Are you using a bond originator? They usually help with finding best interest rates and it's free to use them

 

[livefreegirl]

@rr1111 Bond originators usually mean you get a worse rate, given that the value chain has an additional node…I would go each bank individually and see what the best rate they can give you is.

Prime less 0.8 is not bad at all though in this climate. You can also negotiate remember that!

 

[bradleycox]

@rr1111 Yes, initially I went directly to my bank to get preapproval, but I am making use of one now.

 

[appycatholic]

@bradleycox You should take the best rate to the other banks and negotiate a new rate.

The best rate I've heard of is prime minus 2%. If you work for the bank i think its prime minus 5% or something generous like that.

 

[aannl]

@appycatholic If you work for the bank, it's prime minus 2 too.