Applied for a bond....

furpile said:
The criteria they use to issue bonds also change every few months (or the values at least), so it depends on each bank's current circumstances and how much debt they already finance. Thus if you don't get a good rate try another bank.
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Interesting point that, so if you weren't successful getting a bond now then perhaps in 6 months with the changing position of the bank/banks you may become more attractive to them, more willing to take on riskier debts and/or offer you a marginally more attractive rate than previously?
 
Viper25 said:
I would stay away from bond originators.
I got much better rates by going directly to the different banks.
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So, you've got a fetish for filling in forms?

Go with a good originator. Personally, I've gone with Ooba who applied on my behalf to all 4 banks. Nedbank declined to make an offer since I didn't have an existing account with them and Absa cancelled the originators application since I made a separate application with them. Sadly only FNB made a competitive offer. SB sucked.
 
airborne said:
Interesting point that, so if you weren't successful getting a bond now then perhaps in 6 months with the changing position of the bank/banks you may become more attractive to them, more willing to take on riskier debts and/or offer you a marginally more attractive rate than previously?
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From what I have been told yes. They have formulas looking at a lot of factors including the economy, interest rates etc. I think they also need to maintain certain ratios of debt vs capital and the like. So depending on the bank's situation they might give better rates now than 6 months ago because they want more home loans.
 
cbrunsdonza said:
Don't agree. I got a far better deal using a bond originator than going direct. Very much depends on the person who you are working with .
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Suppose it's like a good insurance broker, the smaller more independent guys are looking out more for your needs than the bigger originators that are more relying on marketing spin to sell than good old customer service.
 
So after FNB did their valuation: came back with prime plus + 1.65
ABSA, said all good...R675 750, requiring R119 250 deposit. - deposit you can cover via pre approved personal loan.
\
told ABSA, to go and **** themselves...Guess it will be FNB, and paying extra in every month to reduce the capital.
I am so over this property buying exercise, monopoly is so much easier :D
 
I moved from ABSA to SA Home Loans and was very happy with their service and terms.
 
Prime is now 9.5% if i am not mistaken.

FNB gave me a bond in December last year at prime less 0.6%. I put down about 15% deposit on a 1.5 mil property. Also I have an existing bond with FNB at prime minus 2% going back 10 years. They were the best offer by far compared to ABSA, Std Bank and Nedbank IIRC.

I used BetterBond as an originator and was very happy with the lady i dealt with. Have recommended her to a couple of people so far. Oh, also by directing me FNB's way I also didn't pay bond costs due to their 'move your home, not your homeloan' promo they had/have going so that saved me 20k. I was actually in touch with her for 3 months prior (whilst house hunting) so we did an affordability assessment about a month before I found the placed I offered on.

All my banking is with FNB, been with them almost 3 decades.
 
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yebocan said:
So after FNB did their valuation: came back with prime plus + 1.65
ABSA, said all good...R675 750, requiring R119 250 deposit. - deposit you can cover via pre approved personal loan.
\
told ABSA, to go and **** themselves...Guess it will be FNB, and paying extra in every month to reduce the capital.
I am so over this property buying exercise, monopoly is so much easier :D
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What rate was ABSA offering on the Homeloan and Personal Loan?
 
We're banking with ABSA, just applied for a loan and FNB came back with prime -0.35% with a 20% deposit. We're still waiting for ABSA's response after more than a month. Poor service from ABSA
 
yebocan said:
So after FNB did their valuation: came back with prime plus + 1.65
ABSA, said all good...R675 750, requiring R119 250 deposit. - deposit you can cover via pre approved personal loan.
\
told ABSA, to go and **** themselves...Guess it will be FNB, and paying extra in every month to reduce the capital.
I am so over this property buying exercise, monopoly is so much easier :D
Click to expand...

That's not terrible. If you default, banks have to try recover the bond owing to them by selling your property.
They're offering a 100% bond, meaning that if you default early on they have very little margin to recover the money they have laid out.
That's why even a 10% deposit could significantly bring down the rate of your monthly repayments since you're reducing the bank's exposure.
 
Try SA Homeloans - they bettered all the banks for me.
 
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