Home Loan Tips:
Facing increasing competition and a slowing property market, the four major home loans providers in SA are having to rethink their long standing â€œgentlemenâ€™s agreementâ€ to discourage bond switching among their existing clients.
Now more than ever, home owners have the opportunity to collectively save millions of Rands in home loan interest repayments.
Bond switching â€“ or home loan refinancing â€“ is the practice of moving a home loan from one lender to another in order to take advantage of a better interest rate and lower your monthly bond repayments.
A 1% difference in your home loan interest rate can save you about R200 000 on a bond of R500 000. This is almost half the original value of the mortgage.
Despite the huge savings potential the practice of home loan switching is relatively small in South Africa.
Industry statistics show that less than 10% of all home loan advances in SA are switches.
Whereas in UK about 50% of all home loans granted each year are switches.
Lower Your Bond Repayments:
Interested in switch your bond to for a lower interest rate? Visit IBO HOME LOAN online, complete the form and a home lone consultant will assist you further.