ABSA Home Loans applications delays and Expected Interest Rates

kennedym

Active Member
Joined
Feb 22, 2016
Messages
90
Hi guys

I have 2 questions.

1.
Was just curious if anyone applied for a home loan with ABSA recently and what was your experience. My issue is that I submitted an application to ABSA about 2 weeks ago, but I am still waiting for the approval quotation.
This is obviously messing with my ability to negotiate interest and is creating unnecessary pressure cutting into my timelines. Fnb and Standard gave me quotes within days, but ABSA seems to be a problem for me right now.

2.
Lastly, what do you guys think is a good interest rate. I have no debt, my Experian credit rating is 677 classified as Very Good.

Thanks all
 

zerocool2009

Executive Member
Joined
Sep 4, 2009
Messages
6,577
Hi guys

I have 2 questions.

1.
Was just curious if anyone applied for a home loan with ABSA recently and what was your experience. My issue is that I submitted an application to ABSA about 2 weeks ago, but I am still waiting for the approval quotation.
This is obviously messing with my ability to negotiate interest and is creating unnecessary pressure cutting into my timelines. Fnb and Standard gave me quotes within days, but ABSA seems to be a problem for me right now.

2.
Lastly, what do you guys think is a good interest rate. I have no debt, my Experian credit rating is 677 classified as Very Good.

Thanks all

Follow up with the bank itself. I applied for an Absa bond lately too. I have ZERO accounts with Absa, and the offered me 6%. Think its prime less 1%

Credit scoring systems have a small impact in your bond application, it counts, but your income vs expenses play another big role.
 

kennedym

Active Member
Joined
Feb 22, 2016
Messages
90
Follow up with the bank itself. I applied for an Absa bond lately too. I have ZERO accounts with Absa, and the offered me 6%. Think its prime less 1%

Credit scoring systems have a small impact in your bond application, it counts, but your income vs expenses play another big role.
Hi zerocool, thanks man.
I sent an email to ABSA's actionline and to their twitter(they usually respond). I have complained to the agent dealing with my bond but am not sensing any urgency, hence why i brought up this thread, not sure if they are trying to play me by minimizing the time I have to negotiate thus allowing them to drop less interest rates, that's just my sceptical sides thoughts.

How long did your ABSA application take before you got an approval quotation?

From an interest rate pov, the best i got is 0.91 with Absa and i have accounts with them, sneaky buggers.
Fnb is offering the same but they want me to move and sign up for private banking which i'm sure is expensive and not worth it for me.
StandardBank came back with one heck of a complicated offer, so they split your bond up into 3 tiers, and you pay certain interest for the first tier, less for the second and son on. But their best interest rate in the tiers is a total joke, The interest percentage that is debited to the bond account starts at 6.98% for the 1st 20% of the bond, it then drops to 6.73% for the next 20%. When at 60% of the bond the interest debit is at 6.605%, and it's that less 0.38 if you bank with them.

I'm going to wait for the ABSA approval quote and then play them against each other and go with the best deal I can get.

Also my left over money is more than double what's needed to pay my bond including rates+taxes+lights and water and all my other monthly expenses.
 

zerocool2009

Executive Member
Joined
Sep 4, 2009
Messages
6,577
Hi zerocool, thanks man.
I sent an email to ABSA's actionline and to their twitter(they usually respond). I have complained to the agent dealing with my bond but am not sensing any urgency, hence why i brought up this thread, not sure if they are trying to play me by minimizing the time I have to negotiate thus allowing them to drop less interest rates, that's just my sceptical sides thoughts.

How long did your ABSA application take before you got an approval quotation?

From an interest rate pov, the best i got is 0.91 with Absa and i have accounts with them, sneaky buggers.
Fnb is offering the same but they want me to move and sign up for private banking which i'm sure is expensive and not worth it for me.
StandardBank came back with one heck of a complicated offer, so they split your bond up into 3 tiers, and you pay certain interest for the first tier, less for the second and son on. But their best interest rate in the tiers is a total joke, The interest percentage that is debited to the bond account starts at 6.98% for the 1st 20% of the bond, it then drops to 6.73% for the next 20%. When at 60% of the bond the interest debit is at 6.605%, and it's that less 0.38 if you bank with them.

I'm going to wait for the ABSA approval quote and then play them against each other and go with the best deal I can get.

Also my left over money is more than double what's needed to pay my bond including rates+taxes+lights and water and all my other monthly expenses.

My golden rule, put max 10% down. Take the best bond with that deposit.

Mine was 1 week roughly, but I send it back, as they couldnt beat FNB’s rate
 

kennedym

Active Member
Joined
Feb 22, 2016
Messages
90
My golden rule, put max 10% down. Take the best bond with that deposit.

Mine was 1 week roughly, but I send it back, as they couldnt beat FNB’s rate
They told me putting a deposit wont make a difference... They do seem pretty inconsistent.

1 week is pretty good compared to what my experience is. I am on 2 weeks now, still waiting for a quote and I have to secure a bond by Monday, not much negotiating room. :rolleyes:
 
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