Comments on: Which factors affect the interest rate on your Home Loan

By: Labius

Labius — Wed, 02 Nov 2011 15:22:40 +0000

Hw much home loan do I qualify for if earning is R6024 and R1650 living out allowance per month? And hw much do I have to pay per month insurance included?

By: Gino S

Gino S — Thu, 20 Nov 2008 06:03:42 +0000

Hi Nikki,

That is an excellent question.
Your credit rating is affected negatively by unpaid debit orders and/or skipped payments. Also, if you don’t have any credit credits or loans you will not build up your credit profile.

Generally, the banks will grant you a home loan with a poor interest rate if you can afford the bond, but have a low credit rating.

With a low credit rating you’re a higher risk to the bank, and therefor are given a poor concession (interest rate discount).

By: Nikki

Nikki — Fri, 07 Sep 2007 07:49:33 +0000

When the banks say “doesn’t meet credit criteria” or “poor scoring” what does that mean exactly? If I was granted a loan but was given a very poor concession rate, what would the reasons for that be?