There are many different home loan options available in South Africa. It is crucial when shopping around for one that you chose the best one for your needs. There are four main types of SA homeloans, guaranteed decreases, fixed interest rate, capped rate, and variable interest rate. The guaranteed decreases type of loan is offered occassionally and it promises that the interest rate will incrementally decrease over the period of one to five years. With a fixed interest rate the interest rate will not change for a period of two years even if the country wide base rate goes up. The capped rate bond puts an upper limit on the interest rate of the loan and allows for decreases if the country wide base rate falls. And finally the variable interest type links your interest rate to the country’s base rate and it is adjusted up or down periodically according to this.

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