Home Loan : First Time Buyer

[powermzii]

Hi all,

I have put in an offer to purchase on a property in Cape Town for R1.4m. I have spare cash, but will still ask for 100% bond.

Is there anybody who has done this recently who might know what Interest Rate I might expect as a first time buyer, and which banks stand the best chance of getting 100% bond.

Is 100% at prime a little bit too ambitious?

Much obliged.

All the best with the process

If you don't mind me asking, where in CT are you buying?

 

[bromster]

All the best with the process

If you don't mind me asking, where in CT are you buying?

I have been looking in Plumstead and surrounds.

 

[powermzii]

I have been looking in Plumstead and surrounds.

Ah cool. Some gems there if you are prepared to look hard. Holding thumbs for you

 

[flippakitten]

Thanks for the replies. I have been told that some originators penalise you for trying to increase your bond payment and shorten the term, but I don't understand how that is legal.

And just as a reference, my colleague just got 2 options today from nedbank:

100% of 1.75m @prime+0.75
Or
90% of 1.75m @prime

Bond Originators are the same as estate agents, don't waste your time... It's dam simple to call the banks call center.

Anyway, 100% bond they will only pay out what the house is worth.
So if it's a fixer upper, it becomes harder unless you offer what the bank valuator values the house at.

Go for 100%, unless you have a 40% deposit it's not really going to make a difference.

 

[flippakitten]

Don't fall for "approved in principle" on your bond. Wait for "approved".

A colleague stands to lose thousands after "approved in principle" was followed some weeks later by "denied".

He's already put money into alterations.

Rule #1:
The estate agent has massively inflated the price.

Rule #2:
Don't spend a cent of your money on the property until you have the title deed.

 

[Salt]

Rule #3 make sure you have a COC for everything that needs one - gas, electricity, electric fence. I am battling now...

 

[Salt]

OH Rule #4 LITERALLY go check everything in that house...on the day the agent is going to hand over the keys, he/she is going to try and make you sign a little form that says you have received the house is good order - meaning you agree that everything is OK. I wrote on his stupid little paper 'to be confirmed' - all I can say is watch your back - take 20 friends with you to the house and check everything. Open every tap - check hot and cold water, flush every toilet at least 4 times, take a TV dinner with you and warm it in the oven to make sure it works, if there are ceilings get a head torch and get in there, open every single cupboard, check every light, leave a piece of food on the floor in every room and check an hour later if there is a swarm of ants - CHECK EVERYTHING Once they have their bucks it aint so easy to get stuff sorted out again.

 

[Velenoso]

OH Rule #4 LITERALLY go check everything in that house...on the day the agent is going to hand over the keys, he/she is going to try and make you sign a little form that says you have received the house is good order - meaning you agree that everything is OK. I wrote on his stupid little paper 'to be confirmed' - all I can say is watch your back - take 20 friends with you to the house and check everything. Open every tap - check hot and cold water, flush every toilet at least 4 times, take a TV dinner with you and warm it in the oven to make sure it works, if there are ceilings get a head torch and get in there, open every single cupboard, check every light, leave a piece of food on the floor in every room and check an hour later if there is a swarm of ants - CHECK EVERYTHING Once they have their bucks it aint so easy to get stuff sorted out again.

If I checked every property I bought as thoroughly as you I'd be about 20 years older than I am.

 

[Salt]

If I checked every property I bought as thoroughly as you I'd be about 20 years older than I am.

LOL - thus why I say take a possie with you - all your mates and IMPORTANTLY their wifes/gf's to help check - trust me, finding the issues beforehand and moving in to a house all sorted out will be good for you and your marriage/relationship Its worth the effort.

 

[Napalm2880]

OH Rule #4 LITERALLY go check everything in that house...on the day the agent is going to hand over the keys, he/she is going to try and make you sign a little form that says you have received the house is good order - meaning you agree that everything is OK. I wrote on his stupid little paper 'to be confirmed' - all I can say is watch your back - take 20 friends with you to the house and check everything. Open every tap - check hot and cold water, flush every toilet at least 4 times, take a TV dinner with you and warm it in the oven to make sure it works, if there are ceilings get a head torch and get in there, open every single cupboard, check every light, leave a piece of food on the floor in every room and check an hour later if there is a swarm of ants - CHECK EVERYTHING Once they have their bucks it aint so easy to get stuff sorted out again.

This sounds hardcore but it's absolutely worth it. I went through a nightmare purchase of a 1.4mil home and only once we moved in, we realized the geyser element and thermostat weren't working, the showerhead leaked into the wall and the outlet for the washing machine ran directly into the kitchen cupboards :wtf:

 

[Salt]

We've now found out that the gas oven is faulty, no more parts for it so it needs to be replaced...now trying to get the seller to sort it out...what a mission! Also just had to pay for pest control to kill the gazillion ants.

 

[me_]

This sounds hardcore but it's absolutely worth it. I went through a nightmare purchase of a 1.4mil home and only once we moved in, we realized the geyser element and thermostat weren't working, the showerhead leaked into the wall and the outlet for the washing machine ran directly into the kitchen cupboards :wtf:

Did you not get a plumbing certificate of compliance? If you did, they are liable as they have certified that there are no leaks and all the plumbing is in order.

 

[me_]

We've now found out that the gas oven is faulty, no more parts for it so it needs to be replaced...now trying to get the seller to sort it out...what a mission! Also just had to pay for pest control to kill the gazillion ants.

As with my other reply, did you not get a gas certificate of compliance? If you did then the company that certified it should be liable. The certificate should have a period for which it's valid.

 

[Salt]

We did...means nothing these days it seems as there were still issues. Don't let a piece of paper give you peace bud. Make sure everything is sorted before you move in - not always that simple I know We've paid the school fees - you don't have to as well

 

[me_]

We did...means nothing these days it seems as there were still issues. Don't let a piece of paper give you peace bud. Make sure everything is sorted before you move in - not always that simple I know We've paid the school fees - you don't have to as well

I don't believe the COC means there are no issues, but the issuer can be held liable for defects that you pick up. The only thing is you have to raise them quite quickly and some of them are going to be a bit of a fight as they may say the item worked when they inspected.
What did the company say when you raised the issue?

 

[Salt]

I am waiting for feedback from the property agents...already had Bosch out and it can't be repaired...needs to be replaced.

 

[me_]

I am waiting for feedback from the property agents...already had Bosch out and it can't be repaired...needs to be replaced.

If you are taking it up with the property agents, then I assume you are trying to get the previous owners to pay for it?
For transfer to take place, any gas installation requires a Certificate of Conformity which states that the tester takes on liability once they have signed off the installation. Has this happened or have you just taken occupation waiting for the certificate and then transfer?
If the certificate is in place, then the previous owner can turn around and say it was certified and it's not their problem unless the issue was due to something they did after the certificate was issued and before transfer.

 

[Salt]

Transfer went through and we were still waiting for COC's...I am ready to argue this thing

 

[MrGray]

From recent experience I would definitely recommend using an originator and avoiding the path of applying at your own bank directly. While you would think it would make sense to use your existing bank, this created endless complications in my case as they then proceeded to query transactions in virtually every one of a dozen accounts we had with them, demanding tax certificates, auditor statements etc etc. The fact that since they were our bank they had intimate access to ALL accounts even those not related to the transaction actually meant four weeks of back and forth with increasingly bizarre demands for documentation to the point that since the offer was expiring we told them to get lost. This is Nedbank by the way.

 

[Salt]

I dealt directly with Nedbank and had no issues.