Ridiculous Mortgage bond interest rate

I have an existing home loan with Absa at an interest rate of 8.9%. I took out the loan in 2009, so effectively 9 yrs. I currently want to do improvements on the house. I enquired with the bank on a further loan. I was advised on 2 options. one being, they can grant the additional loan added on the remaining balance and giving me the new interest rate on the overall amount. another being a multi-plan as they call it and my existing facility continues on the current interest rate and the additional loan becomes a separate facility with its own interest rate. On the 1st option, they quoted me interest rate of 10,9%. On the 2nd option, they quoted interest rate of 10,65%. Prime is 10%. Needless to say, i rejected the both options. I asked the customer consultant to take back the multi-plan option on review. He comes back with a new approval of 10,55%. Wow Absa Wow! On his attempt to convince me, he tells me that multiplan interest rate is non-negotiable. Also, when a bank gives you an interest rate of prime less, the bank does not make any money from the deal. Maybe I may seem stupid, but no bank would make a deal if they lose money. So in my current home loan the bank is losing money. Never felt so insulted. Actually having a loan for 9 years that I have never defaulted on, regulations allow me to approach the bank for them to review my interest rate. I could never accept an interest rate over prime on a home loan when even on my car it is prime less 2%. Absa let me know, if you want me to move on....that I can do!