Home Loan dilemma

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Viper25

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Once again, I am turning to mybb folk for life changing decisions. So far, you guys have given great advice, So I trust in myBB :)

I applied for a home loan and FNB and Nedbank both came up as the best.

Purchase price : R1 350 000
Deposit put in R150 000

FNB :
Rate - Prime - 0.23
Loan amount granted - R1 200 000
Insured for R1 200 000
Property Insurance premium - R260

Nedbank
Rate - Prime - 0.6
Loan amount granted - R1 147 500
Insured for R1 500 000
Property Insurance premium - R450

So as you can see FNB is granting me the full bond amount of R1 200 000 with a higher interest
rate and lower insurance premium and Nedbank is granting me a lower bond amount of R1147500
with a better interest rate and a higher insurance premium.

I like the Nedbank one, however I am short of around R50 000. I can get this R50 000
from my credit card though :erm:

Any advice please, which deal is better ? :)
 
The Nedbank one. If you can get the shortfall and repay it as soon as possible I don't see why you would even consider the FNB offer.

But that's just me :)
 
Viper25 said:
Once again, I am turning to mybb folk for life changing decisions. So far, you guys have given great advice, So I trust in myBB :)

I applied for a home loan and FNB and Nedbank both came up as the best.

Purchase price : R1 350 000
Deposit put in R150 000

FNB :
Rate - Prime - 0.23
Loan amount granted - R1 200 000
Insured for R1 200 000
Property Insurance premium - R260

Nedbank
Rate - Prime - 0.6
Loan amount granted - R1 147 500
Insured for R1 500 000
Property Insurance premium - R450

So as you can see FNB is granting me the full bond amount of R1 200 000 with a higher interest
rate and lower insurance premium and Nedbank is granting me a lower bond amount of R1147500
with a better interest rate and a higher insurance premium.

I like the Nedbank one, however I am short of around R50 000. I can get this R50 000
from my credit card though :erm:

Any advice please, which deal is better ? :)
Click to expand...

I'd go and look at the total amounts you'd end up paying over whatever period you're financing the bond along with insurance costs and go with whatever's cheaper. Have you told Nedbank that FNB are doing the full amount for you? They may be willing to match or better the deal
 
grav80 said:
The Nedbank one. If you can get the shortfall and repay it as soon as possible I don't see why you would even consider the FNB offer.

But that's just me :)
Click to expand...

Yeah, if I go with Nedbank I will be struggling a bit for the first few months, but I am hoping to pay off the shortfall in at least 6 months.
 
Remember you are not obliged to accept the bank's insurance - you can use your own broker/company.
 
Nedbank...

Get insurance elsewhere...

(ABSA had me at almost R500 for insurance, I'm now paying just over R200 at Indwe)
 
Messugga said:
I'd go and look at the total amounts you'd end up paying over whatever period you're financing the bond along with insurance costs and go with whatever's cheaper. Have you told Nedbank that FNB are doing the full amount for you? They may be willing to match or better the deal
Click to expand...

Yes, Told Nedbank, they weren't interested in doing the full amount and the reason was that I dont have an account with them.
 
xrapidx said:
Nedbank...

Get insurance elsewhere...

(ABSA had me at almost R500 for insurance, I'm now paying just over R200 at Indwe)
Click to expand...

Can I change the insurance at a later stage, say 6 months later? Reason being I dont want any extra paper work to hold up the
processing of the home loan.
 
Viper25 said:
Can I change the insurance at a later stage, say 6 months later? Reason being I dont want any extra paper work to hold up the
processing of the home loan.
Click to expand...

Yip - you'll need the home loan first... once you have the house... contact a broker and have them do the paper work... the broker needs to send the policy to Nedbank for approval, took about a month with ABSA.
 
Play them against each other. Tell Nedbank that FNB is offering the full amount and tell FNB that Nedbank is offering a better interest rate.
 
xrapidx said:
Yip - you'll need the home loan first... once you have the house... contact a broker and have them do the paper work... the broker needs to send the policy to Nedbank for approval, took about a month with ABSA.
Click to expand...

Ok cool. Valuable info here.
Thanks
 
Rather make it a personal loan than putting it on a credit bard.

Also, insuring a 1.2m asset for 1.5m is no good either. You get paid out based on the assets value, not the insured amount.
 
Mike Hoxbig said:
Play them against each other. Tell Nedbank that FNB is offering the full amount and tell FNB that Nedbank is offering a better interest rate.
Click to expand...

I tried that. Didnt work. None of them want to give me a better offer. They keep on saying that prime minus is already very good and I should be happy about that.
 
HavocXphere said:
Rather make it a personal loan than putting it on a credit bard.

Also, insuring a 1.2m asset for 1.5m is no good either. You get paid out based on the assets value, not the insured amount.
Click to expand...

The banks send an assessor out - and they insure it for what they believe is the replacement cost, not the buying price.
 
Get FNB to match Nedbanks rate then go with FNB ;)
 
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