12.5% Interest Rate on Homeloan, arent I getting shafeted?

[starring]

So I have been applying for a homeloan since January this year, got rid of retail account, study loan and a credit card. 3 dog ugly son of goat banks denied me a mortgage loan and Standard Bank was the only bank to the party with 12.5% for a R540000 loan. Doesnt that sound much like serious shafting for a first time buyer. I need advise, Im thinking I continue renting until I at least get prime minus something or prime at most, please advise

[Pakka]

My wife and I just bought a house and got 8.5% on a loan of R830k. She's a teacher and I m a programmer. Both of us have been working for less than a year and we've been using our credit cards wisely go build up a credit record. This was from absa, who both of us bank with

[kotesh]

Try sa home loans

[zizo911]

Try sa home loans

Don't they charge extra?

[ambroseg1]

So I have been applying for a homeloan since January this year, got rid of retail account, study loan and a credit card. 3 dog ugly son of goat banks denied me a mortgage loan and Standard Bank was the only bank to the party with 12.5% for a R540000 loan. Doesnt that sound much like serious shafting for a first time buyer. I need advise, Im thinking I continue renting until I at least get prime minus something or prime at most, please advise

you are not being shafted.....you are being screwed over

[Sinbad]

you are not being shafted.....you are being screwed over

Without lube

[snail]

SA home loans only offer a loan to a max of 20 years so if you want anything more than that then it aint gonna happen with them. There are also other factors....are you paying the legal fees in cash, or do you require a personal loan to do this? Have you ever been listed within the past 2 years? Do you meet all your payments on time? Has any payment ever bounced? There are many factors they consider when processing a home loan application. I'm applying for a home loan right now and to be honest I wouldn't consider anything above 9%

[supersunbird]

Don't they charge extra?

Charge extra what?

[volstruis]

Deposit?

[eehellfire]

Try sa home loans

Prime + 1 is what you will get from SA Homeloans (below R1m loan; you won't get better from them)

[supersunbird]

Prime + 1 is what you will get from SA Homeloans (below R1m loan; you won't get better from them)

My prime- rate disagrees....

and other banks also want depostis.

[The_Mowgs]

I recently got 104% at 10.18% from SB.

[marco79]

Factors influencing the rate you received are the way you have been treating your accounts. Banks don't want you to prematurely close accounts or pay off your accounts ASAP cause they loose interest. Another factor is the amount of credit checks on your account in the last year or 2. 1 check by each bank per month up to now is about 24 to 28 credit checks this year alone. Another factor is your payment to disposable income ratio. There are a number of other factors I cannot recall at this moment.

[marco79]

Late payments are kept on your credit record for at least 2 years.

What I done before applying for a homeloan was to get a credit report from ITC and Experian and checked where the problems were on my credit profile. Done the same for my wife. Checked every 3 months until everything on our credit profiles looked good. Then applied.

We still only received finance from SA Homeloans with a 10% deposit at prime + 0.13. The other banks didn't want to look at our application cause I was at my current employer less than a year.

[The_Mowgs]

How reluctant are banks to change your interest rate after say 6 months? I was told that due to the extra 4% on my loan, they can only offer 10.18% but when I paid the extra 4% they will lower my rate. Is this just BS or what?