My mother used to have this saying: “Wors is wors.” Now, for most people (especially non-South Africans), this might not make much sense. But to us, it was used whenever you could not do anything about a situation – you just had to grin and bear it. It brings back memories of youth, and that time of the month when the money in your parents’ bank accounts was tighter than your skinny jeans, and all that was left was that piece of sausage known as “boerewors” in the bottom of the freezer.
Yeah, that’s the same feeling you get when you see your personal interest rate skyrocketing. But wait, can wors really be wors? Can your personal interest rate be lower?
Is there any way to make it more favorable than a sunny day in Cape Town? Well, buckle up and let’s find out!
Your personal interest rate is like a complicated puzzle with five pieces. One wrong piece and you end up paying a fortune in interest. But fear not, young grasshopper! Here’s what you need to know to ace this puzzle:
If you have a good credit score, a fat deposit (20-70%), a short loan term (5 to 10 years), a low repayment-to-income ratio, and your bank account is with the provider, congratulations! Your interest rate will be lower than prime. Now go treat yourself to some biltong and a cold Castle Lager.
But if you have a bad credit score, no deposit, a long loan term (25 to 30 years), a high repayment-to-income ratio, and your bank account is not with the provider, well, my friend, you’re in deep trouble. Your interest rate will be higher than the Table Mountain.
If you fall somewhere in the middle with these factors, then you will probably get close to prime. That’s okay, but not great. It’s like getting a B- in a test. You can do better, champ!
Now, here’s the best part: you can actually improve your personal interest rate!
It’s like playing a video game where you can level up. Check your credit score (for free every 12 months), pay off your bad debts and start saving some cash for a deposit. You got this!
And when you’re ready to buy a house and apply for a bond (or reapply for a better rate), use a bond originator who knows the ins and outs of the game. They’ll help you get the best interest rate possible, just like Rocket properties will help you find your dream home! So go ahead, live your best life, and crush that personal interest rate puzzle!