VERY IMPORTANT: Do NOT use a mortgage originator such as Ooba or whomever. While more convenient in getting quotes from all the banks at once, the banks have to pay a significant percentage of your granted loan amount to the MO as commission. These contracts are sometimes also governed by market share targets and there is some evidence to suggest that your application might be artifically funnelled to those banks where the MO is behind on more lucrative targets. If you approach your bank directly, you may be able to negotiate a better rate because you are effectively 'saving' them up to 2% of the loan amount.
The market has tightened up a bit due to the recession and depending on your loan amount (more than R1mil) it is unlikely that you will be granted more than a 100% bond. Being able to supply a 10% deposit will grease your application significantly and, again, may give you a better rate.
Depending on the type of bond you take up, you may also be able to negotiate a better rate. Flexi or Access bonds are more expensive, because the banks have to reserve additional capital at a cost to them to fund your 'overdraft' facility on the accounts.
If you already have an FNB cheque account, you may be able to negotiate a further reduction of 0.2% on your interest rate.
Also, FNB have some programs in place to reward existing direct customers. Since this is your first bond, you won't qualify right away, but if you take up a second bond with them later on, they will waive your early termination fees on the existing bond (if cancelled), pay the bond cancellation attorney's fees and also pay your bond registration attorney's fees on the new bond (NOT the conveyancer's fees and taxes).
PS EDIT: When looking for a property, make sure you look in an "A" area. Anything less will affect your valuation and the banks won't lend 100% against a low LTV (Loan to Value) ratio. You will also be penalised on your rate.
Juice
