Cape Town mortgage quote: comparing a 4.85% three-year fix

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Homeowner
I want predictable borrowing costs for the first three years. The difficulty is comparing quotes once fees, loan-to-value bands and the balance left at the end are included.

The current offer is 4.85% fixed for three years on a Cape Town purchase of about ZAR 11,920,000. Although refinancing after the fixed period has been suggested, I need the purchase to remain affordable if that option is unavailable. Should I rank lenders by three-year interest, APR, or total payments plus the remaining balance? I’m also checking whether fees are added to the loan, whether the mortgage can be transferred to another property, and what early repayment would cost.
 
My concern is less about finding the lowest headline number and more about knowing what I’m committed to before the rate resets. I’m building an affordability case that assumes no refinance is available after year three. I’d appreciate suggestions for structuring that comparison without pretending to know future rates.
 
For the lender comparison, I’d use total cash paid over the three years plus the outstanding balance at the end. Otherwise, a lower monthly payment can look cheaper while leaving you owing more.

Also establish whether each arrangement fee is paid upfront or added to the loan. Are all the quotes based on exactly the same loan amount and loan-to-value tier?
 
I wouldn’t stop the calculation at the end of year three. That can favour a cheap fixed period followed by an unattractive reset. Model the full period you reasonably expect to own the property, with several post-fix rate scenarios and no assumed refinance. You don’t need to predict the correct future rate; you need to see where affordability becomes uncomfortable.
 
I partly disagree. Unknown future rates can make a full-term cost comparison look more precise than it is. I’d rank the offers using contractual costs during the fixed period, then run the later-rate scenarios as a separate stress test.

For portability, ask what actually carries across: the rate, the remaining fixed period, the loan amount, or merely the ability to apply for a transfer.
 
A simple sheet could have one column per quote: upfront fees, monthly payments for 36 months, any other compulsory loan costs shown in the quote, balance after month 36, and the cost of repaying or moving at a few possible dates. That should expose whether the advertised-rate difference is meaningful or just being shifted into fees.
 
Monthly affordability deserves its own line rather than being buried in total cost. Test the payment after year three at rates high enough to strain your budget, and consider how much cash remains after fees and the purchase. A mathematically cheaper offer may still be the wrong one if it leaves no room for a payment increase.
 
Before comparing 4.85% with the advertised figure, confirm that both are stated on the same basis and for the same loan-to-value tier. I’d also ask exactly when the fixed rate ends and what determines the rate after that. “Portable” and “early repayment allowed” are not enough by themselves; the cost and conditions are what matter.
 
The useful approach here seems to be two tests. First, compare only known three-year costs and the remaining balance, with every fee treated consistently. Second, stress-test the payment after the reset without relying on refinancing.

Then separately compare the flexibility clauses against your realistic possibilities: staying, selling, paying down the loan, or moving property. If one quote is only attractive when refinancing works perfectly, that is a real risk rather than a saving.
 
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