|SA home loans are one of the best financial institutions in South Africa as they provide home loans at an affordable rates. The SA home loans interest rate offered are the cheapest among other banking or financial enterprises in the entire country. The SA home loans were established in the year 1999 and every since their establishment, they have given tough competition to other banks in South Africa. If we look at the history of interest rates, initially when all the banks were charging 23% per annum as rate of interest, the SA home loans introduced the same at 19.6% per annum. This was the first change they brought in to the financial segment of the country.
SA Home Loans Interest Rates
As we already know that SA home loans provide the cheapest interest rate possible on home loans availed. They offer interest rates in two types. They are given below:
The base interest rate charged on all home loan is 10.50%. SA home loans have all the right to change the rate of interest without giving any prior notice to the public. It is always better to contact the bank officials directly for current interest rates. Any change in the interest rates are always lower than the rates offered by other banks. This is because, the sole motive of SA home loans is to provide shelter to all the people of South Africa at affordable rates.
Fixed Interest Rates: Fixed interest rates are the rates that remain the same for a fixed period. It can be for 5, 10 or 20 years. After the completion of a particular period the interest rates can be changed from fixed to variable interest rate. The fixed interest rate may even decrease after a particular period but it will never increase.
- Variable Interest Rates: Variable interest rate change according to the payment option chosen by the customer. The customer can decide to finish off the loan by paying a lump sum amount in the beginning and then reducing the installments there after. Variable interest rates can be chosen by the customers themselves.
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