Home & bond

Bond switching comparison

Compare the cash paths of two quoted home-loan rates, keeping the amount owed and remaining term equal and paying switching costs upfront.

Printed from Mzansi Tools: mzansitools.co.za/bond-switch-compare

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Your equal-term loan comparison

Use current written quotes. This holds both nominal annual rates unchanged and divides each by 12 for monthly interest.

Nominal annual rate means the quoted yearly rate before compounding. Don't use an effective annual rate or annual percentage rate (APR).

Same amount refinanced in both loans (R)R100 to R100 000 000. Hold this amount equal in both paths. It isn't automatically a complete bank settlement quote.

Current nominal annual rate (%)0 to 30%, up to two decimals. Enter your nominal annual rate, not an effective annual rate or APR.

Offered nominal annual rate (%)0 to 30%, up to two decimals, from your alternative quote. No market rate is supplied.

Same remaining term in months12 to 360 whole months. Both paths use this same remaining term.

Current separate monthly lender fee (R)R0 to R10 000, added to the loan repayment once each month. Enter 0 for none.

Alternative separate monthly lender fee (R)R0 to R10 000, added to the alternative repayment once each month. Enter 0 for none.

All once-off switching cash costs (R)R0 to R2 000 000. Combine all extra cancellation, registration and lender charges paid upfront, not financed. Enter 0 for none.

Are both quotes comparable for the same amount and term, with every separate cost included once?Confirm both nominal rates, separate monthly fees and all extra switching cash. No new borrowing, changed term or financed switching fee is supported.

Estimated difference over your chosen remaining termFill in the details

Enter both nominal rates, the same amount and remaining term, separate fees and complete upfront switching costs. Enter 0 where a rate or cost is zero.

Your financial figures stay only on this page. Reloading or leaving clears them.

How it's worked out

All rates, amounts and fees come from you. The regular repayment uses the standard fixed-rate loan formula, rounded once to cents with half cents up.

Each month, interest on the opening balance is rounded to cents, then the loan repayment is applied. The final month clears the exact remaining balance and interest.

We add the separate lender fee each month and the alternative's upfront switching cash once. The accumulated difference compares those actual modelled cash payments.

Recovery is the first nonnegative month-end difference that also remains nonnegative at the term end. A last-payment reversal isn't a lasting recovery.

This model excludes changing rates, extra payments, balloons, cash-out borrowing, different loan terms and financing the switching costs. Actual banks may use daily interest and different schedules.

Bond switching comparison

Your equal-term loan comparison

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