The case against the banks adjusting home loan interest rates may not have had the outcome you hoped for, but there are ways you can get the upperhand with your bond repayments.
* Shop around for the best home loan rates before you sign up with
a bank;
* Negotiate the best rate you can - the first rate the bank offers you is
not necessarily the last;
* Once you have a loan, make an extra payment whenever you can. Even R20
extra a month on a R150 000 over 20 years makes a difference of R26 600 in
interest and you can slash the term of your 20 year bond by 14 months;
* If interest rates come down, continue to repay your loan at the same rate,
you will save yourself a substantial amount of interest;
* Try to make your home loan repayment before the due date each month - the
earlier you pay, the more you will save because your interest is calculated
on the daily loan amount outstanding;
* Consider locking yourself into a fixed rate if you want certainty for
your monthly budget; and
* You may be able to get a lower interest rate by consolidating all your
debt - home loan, overdraft, car, credit card - into one package. But these
packages are usually aimed at people with hefty incomes and assets.