105% home loan

[China_Export]

Hi,

I’ve just secured an otp as a first time home buyer.

I have been offered a 105% bond with an interest of prime minus 0.75. I have negotiated directly with one bank.

Those with expertise in this area, what is my way forward? I’ve spoken to 2 financial advisers who say it’s a good deal as well as bankers from the bank which offered me the home loan.

I’m just not sure if it’s the best deal. Better bond have told me they can do better however, this deal with my current bank ends next Thursday with a further 7 days after that to deactivate the quote.

What should I do? Go with better bond? Or negotiate with another bank directly like I’ve done now to see if they offer me better than go back to my current bank with that offer?

Hoping for some advice from yall!

Kind Regards

 

[Herr der Verboten]

Did you pay your sabc license?

 

[e4et]

Does the extra 5% mean you are left with cash after purchasing the house?

 

[Polymathic]

Maybe try and get the cost of getting off-grid solar tacked on to your home loan.

 

[Lupus]

Does the extra 5% mean you are left with cash after purchasing the house?

That 5% is for lawyers and transfer fees

 

[Grubscrew]

Do you need a 105% loan?

Get the bond originators to approach the other banks on your behalf, make them aware that you a time limit for them to perform.

 

[itareanlnotani]

Hi,

I’ve just secured an otp as a first time home buyer.

I have been offered a 105% bond with an interest of prime minus 0.75. I have negotiated directly with one bank.

Those with expertise in this area, what is my way forward? I’ve spoken to 2 financial advisers who say it’s a good deal as well as bankers from the bank which offered me the home loan.

I’m just not sure if it’s the best deal. Better bond have told me they can do better however, this deal with my current bank ends next Thursday with a further 7 days after that to deactivate the quote.

What should I do? Go with better bond? Or negotiate with another bank directly like I’ve done now to see if they offer me better than go back to my current bank with that offer?

Hoping for some advice from yall!

Kind Regards

Its not terrible, although you could probably ask them to see if they can increase it to prime less > 0.75, doesn't hurt to ask.

I'd be wary of a bank trying to push you into taking a deal with a tight time limit, thats really coercion. They will make a ton of money off you from the life the bond, so push back and say you're looking at other offers, and they need to extend the quote.

Don't be a pushover.

 

[China_Export]

Did you pay your sabc license?

No, not yet, I forgot about that

 

[China_Export]

Does the extra 5% mean you are left with cash after purchasing the house?

It’s for the extra fees

 

[Hamster]

Better bond have told me they can do better however, this deal with my current bank ends next Thursday

So tell BetterBond to hurry the **** up

 

[China_Export]

Do you need a 105% loan?

Get the bond originators to approach the other banks on your behalf, make them aware that you a time limit for them to perform.

Yes, definitely.

Don’t have a deposit, but I’m purchasing at 33% of my pre-approved maximum so I can still live within my means.

Ok cool, already pre approved with betterbond, just filled their docs, gona send the otp to them with application.

 

[China_Export]

Maybe try and get the cost of getting off-grid solar tacked on to your home loan.

Is that even possible?

 

[China_Export]

So tell BetterBond to hurry the **** up

I was only preapproved with them, I didn’t go with them because I thought they are middlemen

 

[Lupus]

Do you need a 105% loan?

Get the bond originators to approach the other banks on your behalf, make them aware that you a time limit for them to perform.

Lawyers fees?

 

[China_Export]

Its not terrible, although you could probably ask them to see if they can increase it to prime less > 0.75, doesn't hurt to ask.

I'd be wary of a bank trying to push you into taking a deal with a tight time limit, thats really coercion. They will make a ton of money off you from the life the bond, so push back and say you're looking at other offers, and they need to extend the quote.

Don't be a pushover.

They went from prime minus 0.30 to minus 0.75 during our negotiations

 

[China_Export]

Lawyers fees?

Yes, it’s for the lawyer fees and bond registration costs.

 

[Hamster]

I was only preapproved with them, I didn’t go with them because I thought they are middlemen

Who cares if they are middlemen if you end up getting a better deal?

They are brokers - after the bond is arranged via them it's between you and the bank.

The only two things that matter is the interest rate and whether you have flexible access to the loan capital (if that is important to you).

 

[China_Export]

Who cares if they are middlemen if you end up getting a better deal?

They are brokers - after the bond is arranged via them it's between you and the bank.

The only two things that matter is the interest rate and whether you have flexible access to the loan capital (if that is important to you).

I assumed because they’re middleman, the interest rate isn’t as low as if you negotiate directly because they need to be paid by the bank

 

[China_Export]

Who cares if they are middlemen if you end up getting a better deal?

They are brokers - after the bond is arranged via them it's between you and the bank.

The only two things that matter is the interest rate and whether you have flexible access to the loan capital (if that is important to you).

But now I’ve sent them an application.

 

[Grubscrew]

I assumed because they’re middleman, the interest rate isn’t as low as if you negotiate directly because they need to be paid by the bank

I have always had beter deals from originators, than from approaching the banks directly.