Check your bond statement or call your bank
Current prime = 10.25%. Use your best offer or prime as a target.
Bond registration + cancellation fees typically R15,000–R25,000
Enter your current rate, new rate and bond balance, then click Calculate to see whether switching is worth it.
Ready to switch to a better rate?
ooba negotiates with all major SA banks on your behalf — for free. They can often secure a better rate than going directly to a bank, and manage the switch process end-to-end.
Start your free bond switch with ooba →Is Switching Your Bond Worth It?
Many South African homeowners are paying a higher interest rate than necessary. If you took your bond several years ago, had a lower credit score at the time, or simply did not shop around, there is a good chance you are paying prime + 1% or more when you could qualify for prime today. A bond switch — transferring your home loan to a new lender at a better rate — can save you significant money.
The Cost of Switching
Switching is not free. You will need to register a new bond (bond registration attorney fees + Deeds Office fees) and cancel the old one (bond cancellation attorney fees + 90 days notice or penalty). In total, expect to pay R15,000–R25,000 in legal costs, plus a new initiation fee (capped at R6,037.50 including VAT). These costs must be recovered through your interest savings before a switch genuinely benefits you.
Negotiate Before You Switch
Before committing to a switch, always try to negotiate a lower rate with your current bank first — it is faster, free, and avoids legal costs. Contact your bank's retention department directly, or have a bond originator negotiate on your behalf. Banks are often willing to reduce rates for customers with good payment history or improved credit profiles, to avoid losing the account entirely.
When a Switch Makes Clear Sense
A bond switch typically makes clear financial sense when: the rate reduction is 0.5% or more; your outstanding balance is R500,000 or above; you have at least 10 years remaining on your bond; and you plan to stay in the property for at least 2–3 years (to recover switching costs through savings). Use this calculator to find your personal break-even point.
Frequently Asked Questions
A bond switch transfers your existing home loan from one bank to another at a better interest rate. You do not need to sell your property — you simply move your bond. It requires a new bond registration and cancellation of the old one, which incurs legal costs of R15,000–R25,000.
Expect to pay R15,000–R25,000 in bond registration and cancellation fees plus Deeds Office costs, plus a new initiation fee (capped at R6,037.50 including VAT). These costs are typically recovered within 12–24 months on a meaningful rate reduction.
Yes — and this is always worth trying first. Contact your bank's retention department directly, or have a bond originator negotiate on your behalf. Banks often reduce rates for customers with good payment history who threaten to switch elsewhere.
Use a bond originator like ooba to apply to multiple banks simultaneously. Once you have a better offer, the originator manages the legal process. Give your current bank 90 days written cancellation notice to avoid a penalty.
It depends on the rate reduction, your balance, and remaining term. A 0.5%+ reduction on a balance above R500,000 with 10+ years remaining typically recovers switching costs within 1–2 years. Use this calculator to see your specific numbers.