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Question of the Day: How do you normally pay for purchases in stores?
Best home loan rate
- Thread starter tRoN
- Start date
deweyzeph
Honorary Master
Depends on your credit profile, age, etc. My experience has been though that once they give you a quote they're about as flexible as a steel rod. Make no mistake you need them more than they need you, and they know it. If you come back to a bank with a better offer from a competitor don't be surprised if they just shrug their shoulders and tell you to take it or leave it.
SauRoNZA
Honorary Master
What are you worried about ethics? These are BANKS we are talking about...the biggest sharks in the business.
I had to put FNB up against Nedbank to get a better deal but they only matched it, didn't better it and I ran out of time to put my guarantees in place.
I got -0.75% July last year with a 25% deposit.
I had to put FNB up against Nedbank to get a better deal but they only matched it, didn't better it and I ran out of time to put my guarantees in place.
I got -0.75% July last year with a 25% deposit.
Arzy
Honorary Master
Just play them all off against each other and when nobody is willing to budge anymore take the lowest quote to SAHL.
tRoN
Executive Member
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I believe they price differently to typical banks as the money they lend you is not from the reserve bank but rather private investors.
Their rate is often not better but they offer you a better chance of getting the loan.
I wouldn't use them perion. Don't like that their rate is not linked to SARB
I wouldn't use them period. Don't like that their rate is not linked to SARB
tRoN
Executive Member
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True. It seems dicey. They could increase rates indiscriminately.
TofuMofu
Honorary Master
I know people who are very happy with them and if they were dodgy, I'm sure people would have known about it by now so there's no reason to talk schit about them.
On topic though, I got +0.8% from Nedbank with 100%. FNB said no thank you and the other banks didn't want to give me 100% so meh.
ToxicBunny
Oi! Leave me out of this...
Their rate is linked to JIBAR... which pretty much follows the Prime rate give or take.
Other Pineapple Smurf
Honorary Master
Don't believe everything you hear from the banks on this.
But go SA Homeloans, that offer got FNB to counter offer with a far better rate.
I also used a bond originator - don't listen to the BS about them not getting you better deals because in my case I would never have gotten my bond amount and rate without them.
zerocool2009
Honorary Master
This is a good question about interest rates.
I would say a few factors are playing a role when applying for a bond.
How long you are with a bank (your profile), the deposit.
I have a few rules when it comes to applying for a bond:
1) Use the same bank where you banks (That usually helps a lot)
2) Put 10% of the purchase price as deposit
3) Always pay all the extra fees in cash (transport etc)
I would say a few factors are playing a role when applying for a bond.
How long you are with a bank (your profile), the deposit.
I have a few rules when it comes to applying for a bond:
1) Use the same bank where you banks (That usually helps a lot)
2) Put 10% of the purchase price as deposit
3) Always pay all the extra fees in cash (transport etc)
ToxicBunny
Oi! Leave me out of this...
How long you are with a bank means sweet FA...
Its all about your current financials and your deposit...
zerocool2009
Honorary Master
Well, in my case I opted for a better rate being with FNB for 30 years, and I am now 37. After giving them some facts they better my rate.
zerocool2009
Honorary Master
and lastly ... good credit score is key and main factor
That's not how it works... Banks don't borrow money from the Reserve Bank (technically they can but they wouldn't unless they were desperate). Almost all of the money that banks lend out is from deposits or other institutions depending on the funding strategy.
Also they price relative to JIBAR rather than Prime (as was mentioned earlier) and JIBAR is quoted on the market daily so they can't just apply whatever rate they want. Only real difference is that JIBAR can change a lot more frequently than Prime because it is recalculated on a daily basis (that said it is pretty stable most of the time just a bit above the Repo rate).
I don't think they are dodgy. I just don't like their operating model. The fact that they are willing to give loans to people that can't get it at the bank is also a flag for me. I don't know how their performance influences JIBAR.