FINANCE
One the FLISP subsidy of R89 187.00 is paid into the home loan of Tumelo , his financial situation will change .
The risk for the bank now also changed and reduced and with the FLISP deposit paid into the home loan , the bank ought to consider a reduction in the home loan interest rate for the client .
This seldom happens , as the home owners are not aware they can ask the bank for such reduction .
Herewith the possible savings , if the interest rate can be reduced to the current prime lending rate of 10.5 %
These are the savings
• Total repayment on 11,2 % x 20 years = R 1 519 755.00 Less
• Total repayment on 10,5 % x 20 years = R 1 450 797.00 Total amount saved = R68 958.00
The opportunity to renegotiate a lower interest rate is open and available for all home owners , and they must make use of such opportunity as the ever increasing interest rates are adding more pressure to the budgets of home owners .
SA Real Estate Investor Magazine FEB 2023 43