This Blog is dedicated to the people who live in and around Harfield Village, the articles herein have been written by locals who either work or live in the area. It is run in conjunction with the Harfield Village website and regular Newsletter and is sponsored by Norgarb Properties.
South African home buyers need to become
more aware of the advantages of being offered a lower interest rate when they
are initially approved for a home loan, says Rudi Botha, CEO of BetterBond,
SA’s leading bond originator.
“As consumers, we all waiting to see
whether the Reserve Bank might raise rates to try to contain inflation later
this month, or possibly lower rates to try to boost economic growth and job
creation – and most of us know that whatever decision is made will affect us in
terms of our monthly repayments on existing debts like car finance and credit
card balances as well as home loans.
“Generally, we are all also aware of the
need to cut expenses wherever possible in order to cope with the rising cost of
living, especially given the VAT, fuel and municipal increases that have taken
place this year. But among prospective borrowers, we are finding that there is
not enough awareness of the really substantial savings to be made by securing a
new bond at a lower rate from the outset.”
For example, he says, a 0,5% rate
concession on a new R1m home loan will immediately reduce the minimum monthly
bond repayment due by some R330 a month – and automatically generate an annual
saving of almost R4000 - without the borrower having to do anything.
“In addition to this, it would cut R80 000
off the total amount of interest due over the 20-year life of the bond – again
without the borrower being required to take any further action – and if you
were to offer consumers similar savings on their cell phone bills, for example,
or on the eventual cost of their car, we have no doubt they would be queueing
up for the opportunity.
“We have also seen the insurance companies
get very good at making consumers aware of how much they could potentially save
by comparing various short-term insurance offerings. But we don’t see the banks
advertising competitive rates for home loans in the same way, and in fact most home
buyers still seem to have the impression that they are ‘lucky’ to be approved for
a bond at all, on whatever terms the lender chooses to offer them.”
However, says Botha, that is patently not
true. “Despite the current economic conditions, BetterBond is currently able to
secure approval for more than 80% of the bond applications we submit, which
just goes to show how keen the banks are at the moment to lend to home buyers.
Indeed, we have not experienced this consistent rate of approval since before
the global financial crisis of 2008/09.
“What is more, our multiple bank approval
process ensures that we are able to offer every applicant the lowest interest
rate available to them from a range of options. And since the variance in the
rates and rate concessions offered averages around 0,5%, the majority of our
clients are able to access significant savings opportunities as outlined above.
“This is a compelling reason for home
buyers to always enlist the help of a bond originator like BetterBond when
applying for a home loan rather than trying other means, especially since our
service is free to potential borrowers.”
Issued by etc
Anne-Marie Bamber is Norgarb Properties dedicated Home Loans Consultant. She has over 15 years’ experience in assisting clients with their Home Loan needs and has placed many happy families in their dream homes.
Contact her today for no cost stress-free home-buying.
Home Loans consultant
Tel: +27 (0)21 851 3568 | Fax: +27 (0)21 441 1494 | Cell: +27 (0)82 071 1665