FNB Home Loan Irregularities

TheRidDlerX

TheRidDlerX

Senior Member
Joined
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Messages
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Location
Jukskei Park, Randburg
Few days ago I was going through some of our home loan statements for the past quarter and something caught my eye. Even though the installment stays static the interest is random each month. My first thoughts were repo rate changes then I realized but the last adjustment was in May of 23'. Decided to pull the last 4 statements that are free to download and I'm baffled.

Y being installment amount (never changes!) and X_Previous the past month.

Debit DateInterestInterest Difference
15 Jun 23X_Previous
15 Jul 23X_Previous
335,01​
15 Aug 23X_Previous
-501,15​
15 Sep 23X_Previous
47,95​
15 Oct 23X_Previous
597,56​
15 Nov 23X_Previous
-501,84​
15 Dec 23X_Previous
602,04​
15 Jan 24X_Previous
-511,3​
15 Feb 24X_Previous
70,88​
15 Mar 24X_Previous
1132,42​
15 Apr 24X_Previous
-1019,67​
15 May 24X_Previous
589,09​
15 Jun 24X_Previous
-479,4​
15 Jul 24X_Previous
586,56​
948,15​

Contacted FNB and initially they started by saying oh but repo rate changes. Alright, last one was May 23'. Then next it was oh additional payments made. Ok.. there was none. Then came up oh Property taxes. But that's between me and CoJ, what's that got to do with my home loan. Now i'm sure they probably going to come back at the end of the day with some or other fancy calculation done at this time and then that influences this and that but I just find it completely strange. I'd expect my interest to simply be staying equal (at worst) or going down each month.

Am I being slow? Does any of yours' also reflect this behaviour?

Thanks!
 
TheRidDlerX said:
Few days ago I was going through some of our home loan statements for the past quarter and something caught my eye. Even though the installment stays static the interest is random each month. My first thoughts were repo rate changes then I realized but the last adjustment was in May of 23'. Decided to pull the last 4 statements that are free to download and I'm baffled.

Y being installment amount (never changes!) and X_Previous the past month.

Debit DateInterestInterest Difference
15 Jun 23X_Previous
15 Jul 23X_Previous
335,01​
15 Aug 23X_Previous
-501,15​
15 Sep 23X_Previous
47,95​
15 Oct 23X_Previous
597,56​
15 Nov 23X_Previous
-501,84​
15 Dec 23X_Previous
602,04​
15 Jan 24X_Previous
-511,3​
15 Feb 24X_Previous
70,88​
15 Mar 24X_Previous
1132,42​
15 Apr 24X_Previous
-1019,67​
15 May 24X_Previous
589,09​
15 Jun 24X_Previous
-479,4​
15 Jul 24X_Previous
586,56​
948,15​

Contacted FNB and initially they started by saying oh but repo rate changes. Alright, last one was May 23'. Then next it was oh additional payments made. Ok.. there was none. Then came up oh Property taxes. But that's between me and CoJ, what's that got to do with my home loan. Now i'm sure they probably going to come back at the end of the day with some or other fancy calculation done at this time and then that influences this and that but I just find it completely strange. I'd expect my interest to simply be staying equal (at worst) or going down each month.

Am I being slow? Does any of yours' also reflect this behaviour?

Thanks!
Click to expand...
Do you pay extra in?

Interest is typically based per day on outstanding amount mine is different every month or zero when the amount is "settled"
 
Snyper564 said:
Do you pay extra in?

Interest is typically based per day on outstanding amount mine is different every month or zero when the amount is "settled"
Click to expand...
I paid in once back in 2022 and that was the last. Do not have a Flexi Bond no, always been too much of a schlep to fill in all the forms again to get it out so that 10k has just been sitting there waiting for when we are done paying off one day. This is what makes this so strange. One thing I have to mention however is that we took out a Maintenance advance for solar back in 2022. I still specifically asked what the process will be and they said it mainly is just going to use what has been paid until then and up the installment, with the same end date - so I can't see that making any impact on an interest that's going up and down
 
TheRidDlerX said:
I paid in once back in 2022 and that was the last. Do not have a Flexi Bond no, always been too much of a schlep to fill in all the forms again to get it out so that 10k has just been sitting there waiting for when we are done paying off one day. This is what makes this so strange. One thing I have to mention however is that we took out a Maintenance advance for solar back in 2022. I still specifically asked what the process will be and they said it mainly is just going to use what has been paid until then and up the installment, with the same end date - so I can't see that making any impact on an interest that's going up and down
Click to expand...
mmm not sure also flexi bond is an instant withdrawal as long as its over R1000 rand, I zero all my accounts into my bond and save literally millions.

You are doing yourself a disservice if you dont have a flexibond
 
Snyper564 said:
mmm not sure also flexi bond is an instant withdrawal as long as its over R1000 rand, I zero all my accounts into my bond and save literally millions.

You are doing yourself a disservice if you dont have a flexibond
Click to expand...
Good tip thanks. I'll be looking at doing that asap soon as I covered all my other admin. Also considered getting a quote from SA Home Loans to take this one over, but not gotten around to it. They not as loud as they used to be on the media anymore, but have to try something after FNB said sorry, cant improve on the interest rate for the second time. So much for being a customer for 20y with a good credit.
 
Its the changes in the number of days in a month. I manually calculated my bond repayments on Excel to see how paying more in each month would affect my payback amount. If I just do monthly payments this is what I get, compounded daily, paid on the 27th of each month, service fees etc. excluded:

1723033465216.png
 
Sheppard_za said:
Its the changes in the number of days in a month. I manually calculated my bond repayments on Excel to see how paying more in each month would affect my payback amount. If I just do monthly payments this is what I get, compounded daily, paid on the 27th of each month, service fees etc. excluded:

View attachment 1749562
Click to expand...
Thanks for this. So if i'm understanding correctly what you're saying is that everything looks normal and its just the way they do their thing? So weird. Even with car payments you can see the interest get less and the capital repayments get more month to month but this just seems completely whack
 
It does get less, but with the long payback period in property you are paying a very, very small amount of capital back each month so you will only really notice the interest decreasing over a few years. That is why it is beneficial, especially in the first few years to get additional capital into the bond. You save millions as Snyper mentioned above.
 
Maybe I should go ahead and just do that Flexi application and get it over with. That said, 8y into the bond. Not sure if too late. That said, i guess with interest its never too late. I thought, however, that paying in extra only pulls back your final payment date. Is it possible to actually start dropping your installment in some manner, and can it be done on a monthly basis?
 
TheRidDlerX said:
Maybe I should go ahead and just do that Flexi application and get it over with. That said, 8y into the bond. Not sure if too late. That said, i guess with interest its never too late. I thought, however, that paying in extra only pulls back your final payment date. Is it possible to actually start dropping your installment in some manner, and can it be done on a monthly basis?
Click to expand...

If you want your installment to drop, ask fnb to lock in prepaid funds, and do a review.
 
TheRidDlerX said:
I paid in once back in 2022 and that was the last. Do not have a Flexi Bond no, always been too much of a schlep to fill in all the forms again to get it out so that 10k has just been sitting there waiting for when we are done paying off one day. This is what makes this so strange. One thing I have to mention however is that we took out a Maintenance advance for solar back in 2022. I still specifically asked what the process will be and they said it mainly is just going to use what has been paid until then and up the installment, with the same end date - so I can't see that making any impact on an interest that's going up and down
Click to expand...
Well that explains it.

Your interest is calculated daily on the capital balance minus the extra you’ve paid in.

That minus amount you see is the rebate on interest for the extra you paid in, and now the extra balance grows.

So next month the interest is less etc.
 
When I read that one needs to complete forms to access prepaid money, I just wonder why? Why ask the bank for your prepaid in the first place?

Secondly, borrowing against a bond, and just keep on paying what they are just silly. A flexible is one of the best designed financial products ever invented, use it
 
Question, your bond is with FNB, do you bank with FNB as your primary bank?

If your bond is with FNB, and bank with standard bank or absa, you wont have a flexi
 
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