Mortgage Advice: Switch my home loan
As an existing homeowner you have bargaining power. Over the years your property value has risen sharply while your bond has grown smaller – it’s time to use your bargaining power to secure a lower interest rate and save on bond repayments.
Let’s look at why and how to switch your mortgage and secure an even lower rate.
The Background:
The South African Home Loans industry is a highly competitive market. This is good news for homeowners since the banks are competing to secure your business, and therefore they’re more inclined to offer lower interest rates and better value added products.
About 5 or 6 years ago the banks held the advantage over their customers since most home owners were unable to negotiate for a really low rate. More recently, these existing clients – and new mortgage clients – are applying for their home loans through a Bond Originator.
Bond Originators have empowered mortgage clients by supplying them with all the relevant information and stream lining the bond application process. By applying through a Bond Originator the client is assured of securing the best bond deal, since the originator approaches each bank and motivates your application for a low rate.
Why:
By switching your existing homeloan to another bank you’re activating the benefits of your credit profile. After years of paying your bond every month you’ve built up a strong credit profile and while your mortgage was being paid off, your property value has been steadily increasing.
By using your improved credit profile and increased property value your bond consultant will be able to negotiate – with either FNB, ABSA, NEDBank or Standard bank – for an even lower rate on your mortgage.
Besides securing a better rate, switching also allows you to apply for additional funds which can be used to pay off other high interest debts such as credit cards, motor vehicle finance and/or pay for a family holiday trip. Using the extra funds to consolidate debts is actually the first step to better managing your mortgage.
Speak to a Consultant:
Click Here and complete your contact details on this short form. A bond consultant will contact your with more information about how to switch your bond.
Related Articles:
- How to better manage your mortgage and saving thousands on interest and other payments
- Switching Home Loans
- 3 Reasons to switch to SA Home Loans
NEXT – I’ll explain the Home Loan Switching process and give you a cash-back offer.
I have a home but would like to know if I change to SA Home Loans how do I benefit?