Home loan advice

StrontiumDog said:
If you bank with FNB definitely give them a shot. I bank with them and they gave me the best rate by far. I used a mortgage originator, not Ooba though. Mine was good, initially the approval of the bond in principle was 0.45% below prime, then later on they had a bug in the system and offered a worse rate, we appealed as we knew they were having issues and the final rate offered was 0.6% below prime. I put down about a 13% deposit.

Also, if you play the eBucks game well and that could make all the difference.

Next bond you take with FNB after this one, they may even pay your bond costs for you: https://www.fnb.co.za/home-loans/move-home-not-your-homeloan.html if the offer is still around then...
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What did FNB offer in the end? Can you elaborate on the eBucks reference?
 
Pakka said:
Do SA Homeloans also offer flexi option like banks do? How easy is it to pay in additionally per month, or to take your additional payments back out?
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I'm with SA Homeloans. It's easy to pay extra, just call them up and have them adjust the debit order.

My bond with them isn't a flexi bond, but i'm sure they offer them.
 
jsheed_sa said:
What did FNB offer in the end? Can you elaborate on the eBucks reference?
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FNB's rewards program works on points to get to certain levels. If you have a homeloan, you get points.

At the end of the day, how you bank will reward you. The homeloan just helps to "beef" up points, if that makes sense.
 
We just did a second bond on our house with Nedbank and got Prime -1.25% on 450k extra.

They are worth checking out.
 
jsheed_sa said:
What did FNB offer in the end? Can you elaborate on the eBucks reference?
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When I went through the whole process last year...FNB was the only ones to come to the party. Personal experience, my own bank ABSA was willing to give my a car loan, but wanted to screw me on a house loan. In the end, took both loans through FNB.
 
Pakka said:
Do SA Homeloans also offer flexi option like banks do? How easy is it to pay in additionally per month, or to take your additional payments back out?
Click to expand...

jsheed_sa said:
I'm with SA Homeloans. It's easy to pay extra, just call them up and have them adjust the debit order.

My bond with them isn't a flexi bond, but i'm sure they offer them.
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We've also just signed with SAHL. You don't need a special flexi option - their standard bond allows you access to extra funds, but with a R10k minimum withdrawal.
 
So far FNB said they've got an application from Ooba so they can't do another application. I've got forms from SA Homeloans to fill in and will see. FNB the cheapest so far.
 
What is the deposit required you guys are getting? I found SAHL and others wanted a significant deposit.
 
+1% at this point in time isn't too bad really.

You definitely want the FNB loan though to get more eBucks.

Their initial offer wasn't great but they were quick to match my lowest offer so just do that.
 
jsheed_sa said:
What did FNB offer in the end? Can you elaborate on the eBucks reference?
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" the final rate offered was 0.6% below prime. "

eBucks works best when you put all your eggs in the FNB basket. So by having a home loan with them, it can make that difference to getting you to the highest reward level with the eBucks programme. 15% back in eBucks (at max reward level 5) for certain partners or purchases is quite lucrative. It depends on how you spend your money, but one can get a lot of rands back every month from eBucks.

http://mybroadband.co.za/vb/showthread.php/632393-Tips-to-Boost-your-eBucks?p=17153383#post17153383
 
Maybe consider fixed rate options at the moment - maybe a bit late actually.

Usually the lender will offer a higher rate, fixed for a for a period.
The one thing we know, is that interest rates are set to climb considering the economy.
 
TEXTILE GUY said:
Maybe consider fixed rate options at the moment - maybe a bit late actually.

Usually the lender will offer a higher rate, fixed for a for a period.
The one thing we know, is that interest rates are set to climb considering the economy.
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+1. Get it fixed for the next 2 years or so. It's only going to increase, stagnate and possibly only come down towards the end of 2017.

I understand that some are forced to purchase property now, but with ever growing economic downturn, interest rate hikes and potential property market adjustments, it is a big gamble to take. I said it in another thread, this is the year where one should settle debt and only consider creating debt as a last resort.

Best of luck with the home loan application!
 
Kosmik said:
What is the deposit required you guys are getting? I found SAHL and others wanted a significant deposit.
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Spoke to a consultant today he said they offer 95%. Did credit check while I was on the phone.
 
TEXTILE GUY said:
Maybe consider fixed rate options at the moment - maybe a bit late actually.

Usually the lender will offer a higher rate, fixed for a for a period.
The one thing we know, is that interest rates are set to climb considering the economy.
Click to expand...

Or not.

http://www.moneyweb.co.za/investing/property/to-fix-interest-rates-or-not/

As they say for budgeting it makes sense, but if you know you can afford the increase then fixing it at a higher rate will probably hurt you more in the long term.

It's also not a given that the interest rates will increase. You might fix it at 2% and then it only goes up by 1% and you've basically given the money away.
 
not a big fan of fixing, they normally are quite aggressive(in their favour) and hike up by +2%, rate is valid for 2 years. Interest rate hikes are quite gradual/phased (assuming we don't hit junk) and I would rather take the differential and plough it into my bond. This approach gets blown out the water if there are massive hikes, but that type of increase would be devastating for most people.

Big boy underpants stuff :-)
 
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