Getting a Better Bond with your Bank

Buying a home is a dream for South Africans, young and old. However, with the current economic scenario, the first priority is to lower costs in whichever way possible. Negotiating with your bank for a lower interest rate – even one percentage point less than your current rate can save you thousands of Rands in the long run. 


Don’t be stuck with a bond interest rate above prime – Gumtree gives you tips to negotiate with your bank effectively:


  1. Even in a buyer’s market where banks are offering 100% loans, we recommend putting in a deposit that proves you have sound financial habits. This gives you the upper hand during negotiations for a better interest rate with your bank.
  2. During months where you have some cash to spare, resist the temptation to spend it. Instead, direct this money into the bond repayments, which in turn, decreases the lending term.
  3. In some cases, you could submit a formal request to the bank to re-evaluate the interest rate. However, you must reiterate how regular you have been with your payments and are, therefore, a low-risk client.
  4. If the bank has rejected your request to re-evaluate the interest rate, you could approach other banks and financial institutions as a leverage to negotiate.


Once you have found the best fit for you, it is time to apply for the bond. The following are the documents needed for your bond application:

  1. A copy of your ID document
  2. A copy of the offer to purchase
  3. Proof of income i.e., salary slip not more than two years old
  4. Bank statements for the last 6 months


Now that you’ve got the knowledge, it’s time to shop! Head to or your Gumtree app (click for Apple & Android) and don’t forget to use your location settings to find homes close to home.


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