Home Loan Tips: Switching homeloans
Home Loan Switching particularly relates to home owners who have had their mortgages for at least 6-months. The process of Switching a Bond refers to the transfer of your current home loan from one lender (bank) to another.
Although many home owners are totally unaware that this option is available to them, Home Loans Switching is a growing trend in South Africa. Customers is starting to relieze the potential of switch their home loans to another bank.
Advantages of Switching HomeLoans
- The most obvious reason to switch your bond is the possibility of getting a lower interest rate from another bank. If your current bank is not prepare to give you a discounted rate on your mortgage, and another bank is willing to do so , then is may well be worthwhile switching.
Is slight difference in your homeloan interest rate can add up to a considerable amount of money over the period of the loan.
- As the number of home loan providers continues to increase, banks are having the rethink their approach to home loans. To attaching new customers many banks will offer you addition banking features and benefits for simply switching over.
Also, the types of home loan products of begin to differ quiet a bit and you may need to switch you home loan to a bank that is able to able you an account that better suits your needs. It’s best to consultant with a mortgage originator to get a better idea of the mortgage products offered at the different banks.
- Another reason to switch is that, if your property value is increase dramaticall since you bought it â€“ you will be eligible for a larger loan or even a second bond. You will be able to decide how much youâ€™d like to borrow during the switching process.