Buying a house....

ScottulusMaximus said:
ABSA first to issue an offer too, 99.43% of property value at 0.09% above prime. Would love to know how they get these values, why not just 100% but anyway... Sneaky bastards charging an initiation fee off the bond value day 1 to get 20 years interest on it, sneaky sneaky.

That interest rate any good by the way? I've no clue until I get the other offers.
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We had massive issues with absa. They only did a desktop review of the home price. There were no homes our size sold on the area yet as onky the first home owners were leaving now after 30 odd years. They offered 90% bond and prime plus 1. FNB came back with proper inspection 100% bond and prime less 0.75% was 26 at the time
 
ScottulusMaximus said:
ABSA first to issue an offer too, 99.43% of property value at 0.09% above prime. Would love to know how they get these values, why not just 100% but anyway... Sneaky bastards charging an initiation fee off the bond value day 1 to get 20 years interest on it, sneaky sneaky.

That interest rate any good by the way? I've no clue until I get the other offers.
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Our bond is with Nedbank.
We had to pay the vonveyancer attorney and the bond attorney upfront, before the completed their final registrations

And

AND

AND

We had to pay the bond attorneys R6000 even before their fees. That R6000 was the initiation fee and came off the bond.

So our R1250 000(got 100%) was then R1244 000 before the bank started charging interest.
Only addirional is the few rand admin fee and the either you have property ensurance with another company and show the bank or the bank adds homeowners insurance for you.

I seem to recall if we did not take it with another company it would have been R100 and something.

We do have prime minus 1 or is it 2 %. Can't remember.
So yeah hold on for the others AND do not be shy to tell your prefered bank that XXX bank offered you Z% interest on Y% bond.

I squeezed nedbank for interest percentage as I was not impressed with their initial prime minus point 3%
 
Most difficult process for us was/is dealing with the developers (new place). But they got their arse into gear and things are actually running smoothly for a change.

As far as bond and lawyers go:

Betterbond - told her I want FNB. Collected my details and fired it off to the other three. Retarded ABSA gave a ridiculous rate in the region 12%. Nedbank came back with sub 9% and Standard Bank was somewhere in the middle.

She then sent the Nedbank offer to FNB, they matched it and bond was approved.

That was last year June and because occupation certificates only arrived now they'll need to send out an evaluator etc. and reapprove the bond (or something).

Lawyers have been friendly and helpful thus far.
 
ScottulusMaximus said:
ABSA first to issue an offer too, 99.43% of property value at 0.09% above prime. Would love to know how they get these values, why not just 100% but anyway... Sneaky bastards charging an initiation fee off the bond value day 1 to get 20 years interest on it, sneaky sneaky.

That interest rate any good by the way? I've no clue until I get the other offers.
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That's not bad. Got 90% and +0.29% mid last year.
 
It is a huge schlep.

I would just like to point out that these bonds are probably the banks' bread and butter so they have to be sure when they give away their 1, 2 or 3 bar that they will be getting it back and then some. From a business point of view I get where they are coming from.

They are essentially giving you other people's money.

Several years ago I was renting at a place and was delivered a document to give to my landlord whom at that point I could not even contact myself.

About two months thereafter I was told the place is going up for auction. Sold for a dime and I had a new landlord for a few months until I moved out.
 
netstrider said:
It is a huge schlep.

I would just like to point out that these bonds are probably the banks' bread and butter so they have to be sure when they give away their 1, 2 or 3 bar that they will be getting it back and then some. From a business point of view I get where they are coming from.

They are essentially giving you other people's money.

Several years ago I was renting at a place and was delivered a document to give to my landlord whom at that point I could not even contact myself.

About two months thereafter I was told the place is going up for auction. Sold for a dime and I had a new landlord for a few months until I moved out.
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Strange that they did not offer it to you first for whatever he owed.
 
Venomous said:
Strange that they did not offer it to you first for whatever he owed.
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They did inform me that I was welcome to attend the auction.

I was in no position to purchase and was not at all interested in the place long term.
 
For what its worth, I have in the region of - 0.4% at FNB, buddy of mine who bought at the same time got about -1.5% through Investec. Worth a shot looking at them too.
 
Bighit said:
For what its worth, I have in the region of - 0.4% at FNB, buddy of mine who bought at the same time got about -1.5% through Investec. Worth a shot looking at them too.
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Yes, Investec still regularly hits into the negatives. -1.5 is particularly good but -1 isn't unusual.
 
I was self-employed from 1976 to 2012 and had 4 business accounts with Nedbank. In 2004 I had the opportunity to buy a deceased estate house for R1m. Went to see the loans officer and told him I wanted R900k for 2 years. I got the confirmation the same day. I understand it is much more difficult today, mainly due to revisions in FICA and the criteria described above are relevant

Your history with a financial institution is all important
 
SAHL came back, 80% at +3.1% lol...

Ooba also finally called back, was fairly indignant when I said I'm making a decision tmrw afternoon so will need their offer before then.

Originator still waiting on Standard Bank's offer, couldn't even submit to FNB as they "require" the 2019 financials, despite saying twice the management accounts would be ok as the financials are not done yet...
 
ScottulusMaximus said:
SAHL came back, 80% at +3.1% lol...

Ooba also finally called back, was fairly indignant when I said I'm making a decision tmrw afternoon so will need their offer before then.

Originator still waiting on Standard Bank's offer, couldn't even submit to FNB as they "require" the 2019 financials, despite saying twice the management accounts would be ok as the financials are not done yet...
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Also go back to ABSA and ask them to make a better offer based on your history of banking with them. As mentioned above, your history with the bank does actually count for something. If you have been their client for a long time they are more likely to make you a better offer, but you have to ask for it. Nedbank came back with a better offer on my homeloan a couple of years ago after I asked them. Worth a shot.
 
ScottulusMaximus said:
Still have to submit to these people, dunno what other fresh hell awaits, presumably they'll want it in fax or telegram.

/end rant
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Wait till you need to do your paperwork with the lawyers.

Snyper564 said:
My wife and I used ooba and it was super smooth sailing all done via email no issues super quick and great rates
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Also used them, were pretty happy with them.
 
So Standard Bank just threw a spanner in the works with 90% at Prime minus 0.7%... After all but deciding on ABSA when they came back with Prime minus 0.02% after I requested they look at things again.
 
My sister just got prime minus 1.35% at FNB and Standard Bank this week. Standard Bank offered first and FNB matched it. FNB offer was prime minus 1% initially.

It's her second property though and only a 60% loan so not sure how that affects things.
 
SaiyanZ said:
It's her second property though and only a 60% loan so not sure how that affects things.
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Massively.
The second property provides a good payment history which lowers credit risk and rate.

The deposit is even bigger - larger deposits mean much less credit risk for the bank, and thus also a lower rate.
 
Woot!

ABSA beat Standard Bank. Still 99.43% of bond amount, I'd love to meet the person that came up with that BTW, but at prime minus 0.72%. So first hurdle well and truly sorted, onwards to the gates of hell!!!
 
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