Home Loan Interest Rates In South Africa
Lowest Home Loan Interest Rates In South Africa Since 1973
The lowest home loan interest rates in South Africa for almost 50 years means that now is a good time to buy.
Furthermore, the latest interest rate cut by the SA Reserve Bank not only provides relief to existing homeowners by reducing their bond repayments, but it offers a fantastic property buying opportunity.
This is especially true for first time home owners who should take advantage of these exceptionally low home loan interest rates to own their own property.
225 basis points is how much the home loan interest rate has fallen this year alone giving South Africans a great incentive to own their own homes rather than rent their properties.
3. Good Reasons To Take Advantage Of the Record Low Home Loan Interest Rates In South Africa
Despite the economic recession, these factors should provide further motivation for you to do everything you can to buy your own home now.
1. The Current Property Market In SA
Due to the economic recession & the Covid-19 lockdown, property prices are at the lowest they’ve been for ages, making it a buyers market.
Therefore, without even considering the home loan interest rates, it’s still a good time to invest in your own home.
2. Home Loan Interest Rates
Another significant reason to buy now is to take advantage of these record low interest rates due to the repo rate cuts announced by the SARB.
Depending on the price of the property, you could be saving thousands a month in your bond repayments.
3. Exemption From Paying Transfer Duty
For first time home owners there’s a huge incentive to buy a property for less than R1 million in order to qualify for the transfer duty exemption.
Furthermore, you can get a modern spacious 2 bedroom apartment in a well run estate for less than R1 million.
Therefore, considering the above factors, they’ve almost created the perfect storm to making it the perfect time for buying your own home.
Which Bank Has the Lowest Interest Rate On Home Loans In South Africa
So now that we’ve established that we have the perfect home buying opportunity, we need to see which bank has the lowest interest rate on home loans in South Africa.
This is all about maximising our savings and getting the best deal when it comes to financing our property purchase.
A Sunday Times survey found FNB to be the most popular bank among the youth of South Africa who largely represent the first-time home buyer.
A good place to start would be with your current bank as they may give their clients preferential rates.
However, you should still shop around as your bank may give you the feeling that they’re looking after your best interests, they may not be giving you the lowest interest rate.
3 Things To Consider To Secure the Lowest Interest Rate On Your Home Loan
- Not all banks are equal as they usually have different lending criteria, which means you could quite easily get a better deal from a bank that you’ve never banked with before.
- Another factor to take into account is how the bank treats its clients in terms of general performance and customer satisfaction ratings for banks in South Africa as you don’t want to deal with a lender that has a terrible customer service record.
- Using a bond originator could be the easiest way to accomplish this task of ensuring you get the lowest home loan rate, as they’ll apply, on your behalf, to multiple banks to secure the best deal for you.