Home Loan Savings Calculator
Discover how much you could save on your home loan by securing a lower interest rate. Even a small reduction of 0.5% can save you hundreds of thousands over the loan term.
Understanding Interest Rate Impact
Why Rates Matter
Interest rates determine how much you pay to borrow money. On a home loan, even a small rate difference compounds significantly over 20-30 years. A 0.5% lower rate on a R1,000,000 loan can save you over R150,000 in interest.
How to Get Better Rates
Banks offer better rates to lower-risk borrowers. Improve your chances by maintaining a good credit score, saving a larger deposit (10%+), having stable employment, and shopping around with multiple lenders.
Prime Rate Explained
The prime lending rate is the benchmark rate banks use. Your home loan rate is typically quoted as "prime minus X%" or "prime plus X%". A prime-linked rate means your payments will change when the central bank adjusts rates.
Negotiation Power
Don't accept the first rate offered. Use quotes from multiple banks as leverage. Many buyers save 0.25-0.5% simply by negotiating. Over a 20-year loan, this small effort can save tens of thousands.
Disclaimer: This calculator provides estimates for illustrative purposes only and should not be considered financial advice. Actual loan terms, interest rates, and monthly payments may vary based on individual circumstances, lender policies, and market conditions. Please consult with a qualified financial advisor or mortgage specialist before making any financial decisions.