VariFix, the new 20-year fixed rate home loan
VariFix is SA Home Loansâ€™ (SAHL) innovative 20 year fixed rate mortgage product. VariFix allows new and existing home owner the opportunity to fix part or the full mortgage for a maximum term of 20 years.
SAHL are the only mortgage providers in South Africa to offer 20 year fixed rates. The benefits of VariFix is that you can choose to fix your home loan rate now to protect it from future interest rate hikes while still benefiting from any possible rate decreases.
At first appearances it may seem is if youâ€™re getting the benefit of both worlds – protection from further rate hikes and benefiting if rates decrease â€“ but economists point out that unless youâ€™re expecting a major interest rate hike in the near future, this is not a wise option.
Finance Expert’s Warning:
Speaking to Person Finance in Aug 2005 financial Planner, Greg Sneddon explained that if SAHL is prepared to offer a 20-year fixed rate, they are not doing it out of the goodness of their hearts.