What is an interest rate?

An interest rate is what the bank charges over and above the cost of the loan itself.

Basically, the interest rate is what the bank is charging for the risk of lending to you.

Your interest rate will be determined by

• The national interest rate (known as the prime lending rate), which is determined by the South African Reserve Bank.
• How much of a risk the bank considers you to be. This is based on their assessment of your credit record.

You can obtain lower interest rates by applying with ooba Home Loans. We submit your application to multiple banks so you can compare the deals they offer and choose the one with the lowest interest rates.