First home loan: direct with bank or through bond originator?

zerocool2009 said:
Take it and run! As in the best offer

What I have learn’d over 20 years, you can simulate a prime less 5%, en 6% if you are smart! (Just prepay your flexi bond).
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Nope, the opportunity cost of the funds that you fund into the flexi bond still means that a poor rate remains a poor rate
 
zerocool2009 said:
The thing with FNB, they do things right. Inspect actually properties etc.

Just a note: not alot of clients know it!

Push your bond 15% in year 1, and they must review and give a better rate!
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OK so I have a new bond starting by the beginning of next month. Once I push an extra 15% or more into my access bond, do I just reach out to my banker and say, "hey is there some sort of a better rate I can get because I paid in 15% of the homeloan value"?

Is there not the chance that they then want to lock down the extra 15% (or more) paid in if they readjust rates?
 
thunder&milkshakes said:
So I ended up applying directly to FNB, and then letting a bond originator who was recommended by a family member apply to the others. She managed to get me a really good rate, at the end -1.75 with Nedbank as their 'main' banked offer (no need to switch salary though, just need to open an account and let the debit order go from there).

FNB was pretty terrible, not only did they take forever, they couldn't even match the other offers and after multiple attempts they only offered -1.6 (including main banked rate).
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If you can get the Nedbank Private Client bank account, it has a lot of benefits. I switched from Std Bank to them and couldnt be happier, sure no ucount but plenty of benefits Standard never had or planner to have.

I applied to FNB for a home loan way back, 2 weeks before any real answer. Their rates were terrible.
 
RogueTr00per said:
OK so I have a new bond starting by the beginning of next month. Once I push an extra 15% or more into my access bond, do I just reach out to my banker and say, "hey is there some sort of a better rate I can get because I paid in 15% of the homeloan value"?

Is there not the chance that they then want to lock down the extra 15% (or more) paid in if they readjust rates?
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It may reduce payments.

Make sure you have money in a backup emergency account, you dont want to touch your bond, but slap money into the total amount. Generally for the first 10 years of a 20 year bond its mainly just interest. So if you can knock that down a bit and keep paying extra where you can, you will eat away at the capital amount quick. Many dont. But if you slap in the 15% upfront, you would reduce your remaining term by about 5 years without any additional extra payments. Its a big difference.
 
RogueTr00per said:
OK so I have a new bond starting by the beginning of next month. Once I push an extra 15% or more into my access bond, do I just reach out to my banker and say, "hey is there some sort of a better rate I can get because I paid in 15% of the homeloan value"?

Is there not the chance that they then want to lock down the extra 15% (or more) paid in if they readjust rates?
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I think they will lock it in, but you can always apply again to have it available. (Its not a train smash at all).

I wonder sometimes who uses their bonds like I am, as I see my bonds as saving accounts rather than bonds
 
Carl_Johnson said:
And your debit orders?
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When I tested this theory, it was 2003 actually.

I move my full salary into my bond. And know exactly what debit orders when goes off.

I paid my first home off in 5 years.

Then since 2010, got 2 more bonds (and R2 000 000 borrowed). Today, 16 years on, I still owe R2 000 000, but bought 7 more properties cash! ;) (with over R10 000 000 in value).

Use the bank towards your advantage in a sensible way
 
mr_norris said:
Instead of money in my normal savings account, I put it in my bond. And transfer it out when I need to.

I can't say that I see my bond as a normal savings account, but I use it like one.
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You save on interest. Once the bug bite you ... you are hooked!
 
Kelvinfin said:
If it’s your first home loan, this question comes up a lot—and there isn’t a one-size-fits-all answer. Both options can work, but they serve slightly different purposes.

Going directly to a bank can feel more straightforward. You deal with one institution, and if you already bank with them, the process might be familiar. In some cases, they may also take your existing relationship into account when assessing your application.

Using a bond originator, on the other hand, is more about comparison and positioning. They typically submit your application to multiple banks at once, which can:
  • Save time applying individually
  • Potentially give you access to different rate offers
  • Help with structuring the application before submission
From what I’ve seen over the years, many first-time buyers underestimate how much presentation and timing affect the outcome. Two people with similar incomes can get very different offers depending on how their application is structured.

A practical approach some people take is:
  1. Understand their affordability and credit position first
  2. Get a sense of what their own bank might offer
  3. Then compare that with broader options through an intermediary

That way, you’re not guessing—you’re making a decision based on actual offers.

Also worth noting: not all financing solutions sit strictly within the traditional bank route. Some buyers (especially those with unique income structures or tighter affordability) explore alternative funding structures to better align the deal with their situation. These are usually more relationship-based and less “one-size-fits-all,” so they’re not always as visible as standard bank products.

At the end of the day, the best option is the one that gives you
  • A rate you’re comfortable with
  • Terms that fit your cash flow
  • And a structure that you can sustain long-term
For a first home, clarity and flexibility usually matter more than just chasing the lowest rate on paper.
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If you dont bank with all off then, it wouldn’t be competitive

99.9% if a non banking bank gives you a good rate, they want you to move all accounts over

The bank who you choose via a MO, gets paid a fee. In short … going direct, you get that fee.

You can even apply via EasyEquities now a days, and personally get paid R5000

At the end of the day: your internal bank scoring plays the most vital role!

I got Standard Bank clients converting to FNB lately, who are over the moon on how easy it was to switch a bond yourself
 
zerocool2009 said:
I think they will lock it in, but you can always apply again to have it available. (Its not a train smash at all).

I wonder sometimes who uses their bonds like I am, as I see my bonds as saving accounts rather than bonds
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I assume there's costs involved though when applying to make the funds available again?
 
Thought I'd swing by the MyBB great minds

We did a OTP yesterday, the seller accepted. The agent emailed us the signed OTP today at 13:33 pm, then I noticed the following

My condition was, that the amount is applicable to 10.5% or better, just to safeguard us. Submitted everything to Betterbond around 13:50 pm today, and I got a call from the lady at BB "Why is it set to the 17th? Banks usually take a few hours to review credit, statements etc. and then get back on a principal pre-approval"

She stated that 24-72H's are standard, not a full day and some hours to spare.

Now i'm wondering if the agent didn't think about the public holiday - I could probably call her and ask her to extend this to the 18th due to the public holiday?

My biggest concern is that there's no way this is enough time for banks to review and get back to BB, especially with the public holiday.

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Gtx Gaming said:
I submitted ooba 3pm, fnb approval was 10am next day. They pretty quick these days.
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Called the agent, that part is for them, and us.

It's to ensure we're good on a pre-approval, that banks will approve on principal, the negotiations and reviewing the house etc. isn't part of the 17th.
BB called the agent as well, and she relayed the same comms - Betterbond is happy with that, should get feedback by today COB, or Wednesday (Pre approved/Credit rating etc)
 
ViciousClone said:
Called the agent, that part is for them, and us.

It's to ensure we're good on a pre-approval, that banks will approve on principal, the negotiations and reviewing the house etc. isn't part of the 17th.
BB called the agent as well, and she relayed the same comms - Betterbond is happy with that, should get feedback by today COB, or Wednesday (Pre approved/Credit rating etc)
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And are you ok if the rate climbs with 2% projected soon in the future? Its nothing to get a bond, its purely to manage the ongoing costs, which may climb (as we seen now)
 
zerocool2009 said:
And are you ok if the rate climbs with 2% projected soon in the future? Its nothing to get a bond, its purely to manage the ongoing costs, which may climb (as we seen now)
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Not sure what we're trying to discuss here?
Regarding if the rate climbs with 2%, yes, I can budget and live with that.

Not to give out to much info, but we're trying to buy a TLC house in a very good area, the house has great potential and they have all the certifications (Beetle, Gas, Plumbing, Electrical)

The houses in this condition go for 2.7-3.5mil, our offer was accepted at 2.4mil.

The 10.5% is rough yes, but what that section indicates, is that we have 1-2 days to at least pre-approve from the banks, and all things go ahead as normal, cutoff is the 3rd of July.

I believe 1-2 days is enough to have the banks pre-approve us
 
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