Home Loan Rate Review

So you managed to go and ask your bank for a home rate review and you were successful, but the amount just seems so small and you busy asking yourself, was that even worth it? Ndivhu did some calculations and I'm just here to show you that it was really worth it. Any amount of reduction in your interest rate is definitely worth it. So what is the scenario that I used? I used a bond of 1 million and originally the interest rate was prime at the moment, which is 10.75 prime at the moment. And this is, um, the remaining period at the time, 180 months. You can divide the 12 to see how many years it is. 180 months. And this is how much interest that person would have paid over the remaining period, right? Not from the beginning of the bond, but over the remaining period, which is 180 months. This is what they would have paid. Look at the portion that says interest. I've highlighted it. That's the amount of interest they would paid. They would have paid. So now this person goes to the bank and says, can I, can you review my rate? These are my reasons, motivate what, what, not all of that. Then after that the bank says, we're gonna reduce it by 25 business points, which is 0.25. Right now the interest rate is 10.5. The remaining balance is still the one million. The remaining period is still the 180 months. But additionally, what this person does is over the term, they are going to take the difference in their, in their installments, the installment before and the installment after the reduction of interest. They're gonna take 300. This is an example. They're gonna take 300 rand and start pushing it towards that bond. So that 300 rand is what the difference between what they were paying, an installment before their interest rate reduction. And now after the interest rate reduction, they take that 300 rand, they start paying it monthly. This is what happens to the bond. Look at the interest rate. Look at that interest rate. Total interest paid over the period. They get to save 100k. A whole 100k in interest. Now, if you are someone who's sitting there thinking, yeah, I got a 25 business points, ah, it doesn't really look like it's much, no. It is much. It could be 100,000 depending on your situation and how much you got an interest rate, how much remaining time you still have, what you do with the difference in the installment that you're getting from the bank after they reduce the rate. What you do is also quite important, as you can see here. So I just wanted to show you guys that so that you get to see. And if you wanna see these calculations, put in the comment section that you wanna see them. I'll put them in the link in my bio and you can have a look at them in your own comfort. And for those who don't know what I'm talking about in terms of home loan rate reviews, please, you can watch my previous videos. But also those who are successful because of my previous videos, please drop it in the comment section and just give them tips on what you said to your bank. How did you approach it? Did you send an email? Did you call? What did you tell them? But remember, you can't say exactly what the next person said because that's what applies to them in terms of their own personal finances. But it could give you tips on what you can use to motivate. So please, let's be helpful to other people and just drop it in the comment section with what you said to your bank. It could help the next person. But have a good day, guys. Do not be demotivated by the fact that they give you a small reduction. Any reduction matters. Just depends on what you do after that reduction. Have a good day, guys. Aa