Bond interest rate

[Agent_Smith]

Howdy,

Is it possible to renegotiate the interest rate on your bond if it's not fixed (or even if it is)? Or is it a case of once you sign on the dotted line with the bank, that's it; you're locked into it rising and falling as dictated by the reserve bank.

 

[saturnz]

I managed to get my bond rate reduced my 0.7% over a 6 month period (2 x 0.35%). The bond wasn't open for long enough to negotiate further rate increases.

Every 3 months you can ask them to re-evaluate the charge.

 

[phoneJunky]

I managed to get my bond rate reduced my 0.7% over a 6 month period (2 x 0.35%). The bond wasn't open for long enough to negotiate further rate increases.

Every 3 months you can ask them to re-evaluate the charge.

Who do you ask? Do you just go into the bank and ask them to point you in the correct direction?

 

[srothman]

We applied, but being on prime -0.95% they didn't budge. We asked the customer service person at the bank (ABSA).

 

[Agent_Smith]

Who do you ask? Do you just go into the bank and ask them to point you in the correct direction?

Was about to ask the same thing.

 

[saturnz]

Who do you ask? Do you just go into the bank and ask them to point you in the correct direction?

the bank's home loan department would be a good place to start if you are unclear about the process.

I engaged with the bank using the call center and email though.

 

[Agent_Smith]

the bank's home loan department would be a good place to start if you are unclear about the process.

I engaged with the bank using the call center and email though.

I'll start there too. Thanks!

 

[3WA]

Call and ask! If you want to play hardball, get an offer from another bank or SA Homeloans, and take that to your current bank. Even if you don't plan to move, you'll either have your current bond revised, or you just walk away sheepishly if they say no.

 

[Speedster]

/sends email to Nedbank

 

[zerocool2009]

FNB has a feature where you can apply any time for a rate review.

I applied many times, and they can only drop it lower (That is the one rule), and they successfully dropped my rate from the original rate

The other rule, if you have a flexi bond, you will lose all your prepaid money (Take note of that).

 

[wonduhboy]

FNB has a feature where you can apply any time for a rate review.

I applied many times, and they can only drop it lower (That is the one rule), and they successfully dropped my rate from the original rate

The other rule, if you have a flexi bond, you will lose all your prepaid money (Take note of that).

By 'lose', you mean no longer have access to the money to withdraw, correct?

 

[zerocool2009]

By 'lose', you mean no longer have access to the money to withdraw, correct?

By lose I mean, your prepaid money isn't available any more.

Lets say your bond is R500 000, and you prepaid your bond by R100 000. You can move R100 000 around any time correct (That is part of your available amount).

If they change your rate, your available will be R0 now (and that R100 000 capital cant be moved). You need them to make it available again.

That is how I understand it.

 

[blunt]

FNB has a feature where you can apply any time for a rate review.

I applied many times, and they can only drop it lower (That is the one rule), and they successfully dropped my rate from the original rate

The other rule, if you have a flexi bond, you will lose all your prepaid money (Take note of that).

they told me they don't allow a review for the first 2 years of your bond .. so i must wait til dec :|

 

[zerocool2009]

they told me they don't allow a review for the first 2 years of your bond .. so i must wait til dec :|

True .. so lets hope the rates go up, then you are in a more fav position to get a rate cut.

If rates are low, banks don't make a lot of money. If the tide change, its a 50/50 call

 

[Speedster]

Here follows the reply from Nedbank:

Good Day

Rate negotiations are not part of Nedbank’s standard business practice.
We can assure you that at point of application, our rate calculation methodology ensured that you were offered the best possible home loan rate linked to prime over your home loan term.
Once the Bond Contract is signed by both parties the rate becomes binding & cannot be increased or decreased during the home loan term.


Kind Regards

My brothers and I are in the process of buying a place for my mom, as soon as that home loan is confirmed I'll get alternative quotes to move my own home loan to put some pressure on Nedbank.

 

[saturnz]

Here follows the reply from Nedbank:



My brothers and I are in the process of buying a place for my mom, as soon as that home loan is confirmed I'll get alternative quotes to move my own home loan to put some pressure on Nedbank.

yeah I would seriously consider approaching other banks

this is the rate review form I filled in a while back with FNB

 

[Speedster]

yeah I would seriously consider approaching other banks

this is the rate review form I filled in a while back with FNB

View attachment 368681

I have a pretty decent rate at Nedbank (prime -0.2%), so I'm not too fussed about it. But if someone else is willing to shave another 0.3%-0.5% off that I will seriously consider it, especially as I still have a good 17 years to go on the loan.

 

[saturnz]

I have a pretty decent rate at Nedbank (prime -0.2%), so I'm not too fussed about it. But if someone else is willing to shave another 0.3%-0.5% off that I will seriously consider it, especially as I still have a good 17 years to go on the loan.

the point though is that they are not really being honest about not being able to adjust the rate while in contract

 

[Speedster]

the point though is that they are not really being honest about not being able to adjust the rate while in contract

Yes, we'll see what they say if I rock up with a better offer from another home loan provider. I managed to shave a full 40% off my insurance premium using that strategy today.

 

[zerocool2009]

By lose I mean, your prepaid money isn't available any more.

Lets say your bond is R500 000, and you prepaid your bond by R100 000. You can move R100 000 around any time correct (That is part of your available amount).

If they change your rate, your available will be R0 now (and that R100 000 capital cant be moved). You need them to make it available again.

That is how I understand it.

Sorry I was wrong. This is when you reset the period back to 20 years.