ABSA Home Loan

[Acid0]

What would be the best for interest and repayment if you want to add a lumpsum to the bond?

Would it be better to just add it to the flexi account(I know it is available at any time and that is a good thing and a bad thing depending on how responsible you are) or simply pay the lumpsum directly on the bond?

 

[Gtx Gaming]

That's good rate I had take prime plus 0.5%, though I techically dont qualify for amount asked for fnb managed to make it work for me.

 

[Bunta]

What would be the best for interest and repayment if you want to add a lumpsum to the bond?

Would it be better to just add it to the flexi account(I know it is available at any time and that is a good thing and a bad thing depending on how responsible you are) or simply pay the lumpsum directly on the bond?

As and when you have cash available.
On Payday, I transfer an amount into the Bond (ref Savings) and keep a spreadsheet of every amount I put in (or take out), this is of course over and above the monthly Debit order/ installment.
Then again at the end of every month, whatever cash I have left over from last months Salary, gets transferred into the bond as "savings".

If ever there's a need for that savings, I transfer from the bond (but also pay it back asap).
Bought my Daughter's car this way, and "paid it back" within 18 months.

 

[WollieVerstege]

What would be the best for interest and repayment if you want to add a lumpsum to the bond?

Would it be better to just add it to the flexi account(I know it is available at any time and that is a good thing and a bad thing depending on how responsible you are) or simply pay the lumpsum directly on the bond?

You would have to discuss with the bank. I remember when I bought my last property about 15 years ago the bank was offering me an additional -0.25% on the interest rate, subject to a max prime -2%, for every 2.5% additional deposit amount I added.

It would also depend on whether you take a flexi or fixed term bond, as either of these will have a different impact on repayments and money paid extra.

My opinion on this is, first get your interest rate as low as possible, and then pay as much extra as you can. I eventually ended up with a 50/50 situation. Added half of my additional cash as deposit and the other half as part of the flexi reserve.

 

[L-Dog]

Also looking at buying a house soon, anyone had experience with the amount of deposit you put down vs interest rate ? Heard if the deposit is to buy often the interest rate isn't great so guess you could take a flexi and then just pump money into it ?

 

[zerocool2009]

Also looking at buying a house soon, anyone had experience with the amount of deposit you put down vs interest rate ? Heard if the deposit is to buy often the interest rate isn't great so guess you could take a flexi and then just pump money into it ?

My rule, put max 10% down, to show the bank you are coming to the party.

A very wise move to take a flexible out. Its like a savings pocket for a bond.

You can simulate a lower rate by prepaying your bond (just a tip)

 

[L-Dog]

My rule, put max 10% down, to show the bank you are coming to the party.

A very wise move to take a flexible out. Its like a savings pocket for a bond.

You can simulate a lower rate by prepaying your bond (just a tip)

Yeah was thinking of putting like 30-40% down so the monthly payments are smaller but guess I can ask the bank for a few options..

 

[zerocool2009]

Yeah was thinking of putting like 30-40% down so the monthly payments are smaller but guess I can ask the bank for a few options..

The issue with deposits, you can not use it for future, its the banks money! As simple as that.

What I did 15 years ago, I bought an apartment, and 10% max was my deposit.

Then I push my bond debt, and re-geared, as in borrowed again it to buy more.

So lets say a R1 000 000, made me R10 000 000 richer today, buying multiple properties (just by re-using the money in the bond).

Hope it makes sense.

You can ask the bank a quote if you but 10% down, 15%, or 20%, what would the rate be (before you commit and accept)