Mortgage quote in South Africa: 7.24% fixed for 15 years? [mixed-use building]

The monthly payment has to remain comfortable without assuming every part of the building produces optimistic rent. Against that constraint, I’m comparing finance for a Cape Town mixed-use property at roughly ZAR 21,750,000.

One quote fixes 7.24% for 15 years, although the lower advertised rate did not include the same fee and loan-to-value position. I’m thinking of requesting like-for-like cash-cost illustrations for both my likely ownership period and the full term. Should the comparison also model an early sale or refinance—for example, all payments, fees and exit costs after five years? Portability and overpayment conditions could affect that decision too.

Total cash cost over a realistic holding period would be my main comparison, with APR as a useful cross-check. Include the deposit, arrangement fees, monthly payments and any likely exit charge. A 15-year calculation can mislead if you may sell or refinance much earlier.

One missing detail: how long do you actually expect to own the building, and is the quoted monthly payment comfortable without relying on optimistic rental income? I’d request matching cost illustrations at several dates—perhaps your expected exit date and the full 15 years—using the same loan amount and loan-to-value assumptions.

I would not reduce this to total cash paid alone. That can make a loan with faster principal repayment appear more expensive even though you finish with less debt. Compare monthly affordability, outstanding balance at each chosen date, fees, and the cost of repaying or refinancing. Also confirm what “portable” means for this mixed-use property; the practical conditions matter more than the label.

Ask each lender for the same figures in writing: initial loan amount, all upfront fees, monthly payment, total paid, remaining balance at your likely exit dates, and early-repayment costs. Then run a second scenario in which refinancing is unavailable or more expensive. With such a long fixed period, the cheaper headline rate may be less valuable than flexibility if your plans change.

Try the 20 year, lowers 1.3% interest.