Better Bond & Home Loans

Fury05

Fury05

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Bit a an advice question. As the title suggests I need to get a bond to purchase a house. Any recommendations from the knowledgeable forum members on wether to go with better bond or to just try to fight for a good interest rate on my own. Thanks guys.
 
Personal experience - do it yourself. A lot more work, but you ultimately get a better rate. 0,25% on R2 000 000 over 20 years = R75000, give or take.
 
Any advice on how to play the banks off against one another and how to get them to negotiate? I've had experience where when purchasing my car I told one bank that the other is giving me a better rate, they told me to go with the other bank then lol
 
Betterbond asked me what rate my bank had offered as they would try use that to get a better rate from the other banks. They turned out to be totally useless though.

I was doing their damned job for them. I eventually gave up.

SA Home Loans were exceptionally efficient, offered the best rate and never screwed me around. My bank was so full of ****.

SA Home Loans get my vote. I would have preferred my bank for the access facility though.
 
drkev said:
Betterbond asked me what rate my bank had offered as they would try use that to get a better rate from the other banks. They turned out to be totally useless though.

I was doing their damned job for them. I eventually gave up.

SA Home Loans were exceptionally efficient, offered the best rate and never screwed me around. My bank was so full of ****.

SA Home Loans get my vote. I would have preferred my bank for the access facility though.
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I agree with this guy, also had no hassels from SA homeloans.What you are actually looking for is a bond originator like OOBA, they query all the banks and get all the offers for you.But i got best rate with SAHL.
 
Fury05 said:
Any advice on how to play the banks off against one another and how to get them to negotiate? I've had experience where when purchasing my car I told one bank that the other is giving me a better rate, they told me to go with the other bank then lol
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Pretty much all you can do. When you get a response like the one above, best to avoid them in any case.
 
Fury05 said:
Any advice on how to play the banks off against one another and how to get them to negotiate? I've had experience where when purchasing my car I told one bank that the other is giving me a better rate, they told me to go with the other bank then lol
Click to expand...

Buying a house is not the same as buying a car.

I worked with both OOBA and SA Homeloans. They did all the work and all I had to do was forward emails to each other as they wanted my business.

Ended up getting Prime + 0.25% with a 90% bond with FNB through OOBA (I had a big enough deposit). I was very happy with this based on my credit score and current debt.

Took only 1 week from start to finish. Also bond originators get paid by the bank and don't earn a cent unless you accept their offer.
 
Very informative guys I might just get in contact with SA home loans and OOBA. I assume I can submit my documents to all of them to see who gets me the best rate. Technically I'm only committed once I accept an offer from one of the banks.
 
Fury05 said:
Very informative guys I might just get in contact with SA home loans and OOBA. I assume I can submit my documents to all of them to see who gets me the best rate. Technically I'm only committed once I accept an offer from one of the banks.
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100%- dont worry, only start worrying when they ask you to start signing stuff.
 
Fury05 said:
Very informative guys I might just get in contact with SA home loans and OOBA. I assume I can submit my documents to all of them to see who gets me the best rate. Technically I'm only committed once I accept an offer from one of the banks.
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Yup

Play them against each and tell them this. It makes them jump. All the best and nothing beats coming home to your own home (even if you still owe the bank your first born)
 
cbrunsdonza said:
Yup

Play them against each and tell them this. It makes them jump. All the best and nothing beats coming home to your own home (even if you still owe the bank your first born)[/QUOTE]
+1 :D
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Is it possible to move an existing homeloan with a bank over to SA Homeloans or OOBA?
 
Agent_Smith said:
Is it possible to move an existing homeloan with a bank over to SA Homeloans or OOBA?
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OOBA are a bond originator... they do not provide homeloans..

and yes you can move a bond to another bank/SA Homeloans... but it will prob cost you around R15k to do so.
 
ToxicBunny said:
OOBA are a bond originator... they do not provide homeloans..

and yes you can move a bond to another bank/SA Homeloans... but it will prob cost you around R15k to do so.
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Hmm, thanks for the feedback. Isn't the transfer cost dependent on the size of the bond? I'm thinking of moving my bond of R500k. Is it also attorney dependent or is the cost fixed?
 
I used Ooba and they managed to get better deals than I did directly.

So I'll happily use them again.
 
And if you want a 2ns bond, or a further bond against the equity in your home?
 
Agent_Smith said:
Is it possible to move an existing homeloan with a bank over to SA Homeloans or OOBA?
Click to expand...

I'm not here to knock SA Homeloans but they do not use the same system to determine your rate. They use the money market instead which is not regulated like the repo rate. Traditionally they have been on par with each other but there is a risk involved. Also your rate is not fixed and SA Homeloans will at regular intervals review your rate.

The risk for me was too high and even though they gave me 95% bond compared to 90% with FNB, I just felt that I had to be cautious.

Also with a R500K bond, you might not end up saving a lot. If your outstanding bond is less than 80% of the value of your property you can usually negotiate a better rate with your current bank as your bond is now lower risk.
 
I'm hoping to follow the same less risky path where I can get a more stable rate... LTV at 80% aswell.

I do have question which comes from a past encounter. When I was doing the car financing for my women we went first went through the dealer and applied. Once we had got the rates I was not impressed and wanted to look at alternatives such as absa or fnb. But when I told the banks that we had first looked applied through the dealer they told us that we have to wait two months before that application clears and only then can they deal with us?

I'm still not sure where that rule comes from but does it also apply to Home loans?
 
+1
drkev said:
Betterbond asked me what rate my bank had offered as they would try use that to get a better rate from the other banks. They turned out to be totally useless though.

I was doing their damned job for them. I eventually gave up.

SA Home Loans were exceptionally efficient, offered the best rate and never screwed me around. My bank was so full of ****.

SA Home Loans get my vote. I would have preferred my bank for the access facility though.
Click to expand...
 
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