It’s great to have a selection of home loan quotes to choose from. You can save yourself significant amounts of money in the long-term by choosing the best home loan quote.
But how do you determine which one is the best? Compare the following factors:
- Interest rates. This is the main factor you should be looking at. Interest rates are determined primarily by two factors; the prime lending rate (in turn affected by the repo rate, which is set by the South African Reserve bank), and how much of a risk the bank considers you to be.
- Home loan term. This is the length of time over which you will be paying off the home loan with monthly instalments. The home loan term is usually 20 years, but you can get longer (30 year) or shorter (15 year) home loan terms. A 30- year term means you have more time to pay it, but the interest rates will be higher.
- Value of the loan versus the value of the property. The bank conducts their own valuation of the property, which may be different from the market value of the property. If the bank values the property at less than the market price, they won’t grant you a loan for the full amount. This can be frustrating.
So you want a home loan with the lowest possible interest rates, as close to the market value of the property as possible, and with a home loan term that suits your situation.
Give yourself with a choice between multiple packages by applying for a home loan with ooba Home Loans. We submijt your application to multiple banks, allowing you to compare the factors above and secure the best home loan deal.