Fix your Home Loan at below Prime Rates

Mortgage News: ABSA Home Loans – Fixed Interest Rates
www.absa.co.za

The question of whether homeowners should fixed their Home Loan Interest Rates is again being discussed. The general rule is that one should opt for a fixed rate if you’re expecting interest rates to increase in the near future, to peg your rate at a preferred level. Although if rates begin to drop your fixed rate could mean you’ll be paying more interest than someone with a variable rate option.

But this rule does not take into consideration factors such as affordability and security. Often homeowners prefer having peace of mind with regard to their monthly bond repayments. A fixed rate means you’re better able to budget your expenses, secure in the knowledge that your monthly repayment won’t shoot up suddenly due to a rate hike.
Another factor to consider is the latest offering by ABSA Home Loans a first in South Africa) – fixed interest rates at up to 2.25% below prime.

Traditionally, Fixed Rates in South Africa are offered for a period of up to 5years at about 1% above the present Prime Rate. ABSA has completely transformed this by offering to fix your home loan at below prime rates for up to 10 years.

This means your could secure your repayments for the next 10years at 11.75%

Below is an example of a 20yr Bond fixed for 10 years at 11.75%
Bond Amount: R510 000
Fixed Term: 10years
Interest Rate: 11.75%
= Monthly Repayment: R5 530

Note these rates are subject to change, and are correct at the time of writing.

Use this Mortgage Bond Calculator to calculate your Bond Savings.