Interest rates are back at pre-pandemic levels after the SA Reserve Bank hiked rates by 75 basis points, for a second time in a row with more hikes anticipated in the near future.

With electricity tariff increases, cost of living expenses spiralling upwards and fuel price hikes, it is even more important to budget and save costs where possible. If you are thinking of buying a home this year, your best investment would be to work with a bond originator who can secure the lowest interest rate to help reduce your monthly bond payment.

To place yourself in a position to get the lowest interest rate on your home loan, it makes sense to use a reputable bond originator like MultiNET Home Loans, which doesn’t cost you a cent. Banks are companies competing for your business, so you should shop around to see who offers you the best rate and MultiNET Home Loans will do this shopping on your behalf.

MultiNET Home Loans applies to as many as nine different banks and they then negotiate with these institutions on your behalf to secure you the lowest possible interest rate, which will significantly reduce the amount you have to pay on your bond each month.

“An interest rate concession (saving on your interest rate) will go a long way to making your ideal home more affordable as it will have a noticeable impact on your monthly bond repayments,” says Shaun Rademeyer, CEO of MultiNET Home Loans.

The interest rate on a home loan will vary depending on what the bank is willing to offer, and how much of a risk they consider you to be.

Other factors that can affect what interest rate you will be offered include:

• Your financial situation – this will affect the interest rate that the bank charges on your home loan.
• Your credit record – this is affected by things such as your level of debt, and how well you pay your bills. Anything above 670 is considered an excellent credit score and is likely to earn you lower interest rates.
• Your deposit – the size of your deposit will also affect your interest rate. The higher the deposit, the less risk to the bank, and therefore lower monthly repayments and interest rates.
• Using a home loan comparison service – one of the most effective ways to achieve lower interest rates is to use a home loan application service such as MultiNET Home Loans.

MultiNET Home Loans give you the opportunity to compare various deals offered by the banks and can assist you in choosing the one with the most favourable interest rate.

“We take pride in our commitment to educate home buyers and bond seekers by providing access to as much information as possible. We believe that an informed client is empowered to make the right choice when it comes to applying for the right home loan. Understanding what type of property, you can realistically afford is made easier with our pre-qualifying affordability calculator,” Rademeyer says in closing.

If you are looking at buying property MultiNET Home Loans can assist you in finding you the best home loan with the most favourable interest rate, for more information contact us 0861 54 54 44, Whatsapp 061 537 8778 or visit www.multinet.co.za