O sorry, missed it
No worries
So seems like most of you agree with me that Nedbank offer is the better option?
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Home Loan dilemma
- Thread starter Viper25
- Start date
No worries
So seems like most of you agree with me that Nedbank offer is the better option?
Get FNB to match Nedbanks rate then go with FNB
I tried that. Didn't work unfortunelty. Banks are fussy these days
HavocXphere
Honorary Master
If replacement cost and buying price isn't near identical then something is very wrong.
Ou grote
Honorary Master
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 ?
Did you go to the banks, or use an originator?
I'd try Multi-insurance brokers, or similar.
They do all the work for you, takes about 20 minutes on the phone.
I went to the bank. I don't trust originators.
The banks also told me its better to do the application yourself.
Ou grote
Honorary Master
Using originators would be free, worthwhile doing.
I'm going to be applying for a new home loan myself.
And will try all the options out.
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 ?
My recommendation is to take Nedbank offer to Absa. Ask them for s better rate. Also. If you go the Nedbank offer, shop around for home owners insurance. You are not obliged to use nedbanks insurance.
Its not really free. Originators get commission and I heard that this can influence the rate you get.
Not 100% sure though. I just fell more comfortable doing the application myself as I have had bad experiences with
originators on previous occasions.
If replacement cost and buying price isn't near identical then something is very wrong.
Not really. It's like a second hand tv or something. You'd only pay half the price for a second hand tv, but if it gets stolen you will want to replace it with a new one. The insurance should be around what it would cost to build a completely new house, where you might pay less for a house because it maybe has a few cracks etc.
If replacement cost and buying price isn't near identical then something is very wrong.
Why? Its property? We picked up our house for R1.6mil - its valued at R2.1mil... if its completely destroyed should I only get R1.6mil? That doesn't put me where I was
What happens in 10 years time, you still only paid 1.2mil for your house, can it only be insured for that?
supersunbird
Honorary Master
If replacement cost and buying price isn't near identical then something is very wrong.
Mmmm, building has become very costly these days and often replacement is more expensive than the market price.
If those were the final choices I would go with Nedbank and get my own insurance, however take the Nedbank quote back to FNB and ask them to match it. They will probably improve there interest rate somewhat. Then do the same with Nedbank. Never settle on the first interest rate offer you get.
Thanks for the advice, but yeah, I have tried this and none of the banks want to improve on the offer.
Ou grote
Honorary Master
If they get a better rate then you win, their commission won't cost you anything.
And it's 30 minutes of your life wasted if they don't get a better rate.
ozziej
Senior Member
Yup, the bank cannot grant you a home loan or a rate dependent on you taking their insurance.
I wouldn't even bother taking it from the banks, they make nice healthy margins from it.
Get it elsewhere and take the Nedbank loan. Just tell them flat out, no thanks on the insurance ill arrange it myself.
They can only stipulate that you have to have some kind of insurance that will cover the bond.
I wouldn't even bother taking it from the banks, they make nice healthy margins from it.
Get it elsewhere and take the Nedbank loan. Just tell them flat out, no thanks on the insurance ill arrange it myself.
They can only stipulate that you have to have some kind of insurance that will cover the bond.
I must laugh at all the people who don't read the thread before suggesting thing! He has been told to take the offer to the other bank like 10 times now!
I guess you have to try find the lowest rate of interest you can to finance the short fall... I know some people may suggest against this but are your parents not in a position to help you? Otherwise try find the next best lowest finance charges loan n the shortfall.
I guess you have to try find the lowest rate of interest you can to finance the short fall... I know some people may suggest against this but are your parents not in a position to help you? Otherwise try find the next best lowest finance charges loan n the shortfall.
/echoes xrapidx and others.
Definitely get your own insurance. The banks' insurance offerings are never the best deal you can find. And the Nedbank loan insurance division are also the rudest people I've ever had the displeasure of dealing with (and my broker said the same thing when he dealt with them on my behalf).
Definitely get your own insurance. The banks' insurance offerings are never the best deal you can find. And the Nedbank loan insurance division are also the rudest people I've ever had the displeasure of dealing with (and my broker said the same thing when he dealt with them on my behalf).
Nah, parents cant really help unfortunetly. They have helped me enough getting me through varsity
But yeah, looking to finance the shortfall on the credit card cause the interest rate on my credit card will be better than any personal loan.
So the mybb consensus seems to be to go with Nedbank because of the better rate but get home insurance elsewhere?
Nah, parents cant really help unfortunetly. They have helped me enough getting me through varsity
But yeah, looking to finance the shortfall on the credit card cause the interest rate on my credit card will be better than any personal loan.
It probably will be - personal loan interest rates are insane... also try an overdraft, sometimes lower than credit card.