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The more you pay, the lower your interest rate
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Tiered Rates

Traditionally home loans have always retained the same interest rate throughout the lifecycle of your bond. But we’re changing that! Standard Bank will reward you with a reducing repayment and effective interest rate as your loan is being paid off. 

Some of the benefits

Reduce minimum repayment

Your minimum repayment will reduce as you move to the next tier

Less interest on your loan

As your interest rate lowers, so will the interest on your loan

Pay it faster

The opportunity to pay off your bond faster as your repayments minimise


Clear and achievable goals on your bond repayment to strive for

How does it work?

The interest rate offered on your new bond agreement will consist of up to three milestones. As you pay off your loan and progress to new tiers, the interest rate on your loan will reduce too. 

  • The minimum repayments will reduce whenever the loan amount is recalculated. 
  • A monthly instalment recalculation occurs, the repayment will however only reduce when the reduction in repayment is more than 3%. 

We will also recalculate the repayment when interest rates change or when you request a recalculation of the repayment.

The interest rate on a R1 million loan will be broken up into up to three parts: 

  • Tier 1: R800 000 to R 1 000 000 will be priced at 10.50%. 
  • Tier 2: R600 000 to R 800 000 will be priced at 10.25% 
  • Tier 3: R 0 to R 600 000 will be priced at 10.00% 
  • Weighted average rate: 10.15%

About tiered ratings 

  • Tiered rating is optional.
  • You can achieve an immediate interest rate reduction with additional monthly or once-off payments into your loan.
  • The single interest rate is always equal to the tier 1 rate.


  • Your interest rate will reduce as you repay your bond 
  • Your minimum repayment will reduce with each new tier you achieve  
  • You will save on interest charges as your loan is repaid

Who does not qualify? 

  • Existing home loans do not qualify
  • Applications with more than 40% deposit, building loans, vacant land, development loans and Easysell loans do not qualify. 
  • Loans on behalf of a juristic person also do not qualify for tiered ratings including JumpStart loans and applications for cost inclusive loans.

What about access bonds and prepayments? 

  • The weighted average rate is linked to the outstanding balance
  • When you make additional payments into your home loan, the weighted average rate will adjust accordingly and reduce.
  • When you do a Re-advance, the weighted average rate will increase in line with the increase in your outstanding balance.
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