Home Loan prime minus

Krilliano

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Joined
Aug 25, 2019
Messages
72
Loosing my appetite for them and looking at other options...eBucks is not worth the hassle of dealing with them.
Indeed. I'm probably moving from FNB to Capitec or TymeBank as soon we buy a house. Homeloan will be via SA Homeloans due to public servant benefits.
 

RandomGeek

Expert Member
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May 14, 2015
Messages
1,724
SA Home Loans know they are a backup if the Banks don't grant anything...hence higher interest rate. Nice that they got 100%
Apparently they had both Nedbank and SA Homeloans offers, and the SA Homeloans one was the better one. Not first time buyers so I was actually surprised at the rate, would have expected it to be a bit less
 

falcon786

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Jan 29, 2011
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10,200
FNB sucks as a bank to be honest...I don't know who does their maths, but they don't seem to know wtf they are doing.

They know exactly what they're doing,if you need to pay a house off over 30 years in the first place then yes you're probably over reaching anyway.

They gave me less 1,5% in 2019 with no previous banking record with them even,now that I have a record with them they'll probably do even better.
 

TofuMofu

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Aug 11, 2008
Messages
10,110
They know exactly what they're doing,if you need to pay a house off over 30 years in the first place then yes you're probably over reaching anyway.

They gave me less 1,5% in 2019 with no previous banking record with them even,now that I have a record with them they'll probably do even better.
I applied for a Homeloan 5 years ago and they declined as I haven't been with them for very long. I got my loan from Nedbank.

I waited 5 years and then applied to switch to FNB because I want everything to be together. They declined it...I wasn't applying for a new loan, I was applying to switch a home loan that's paid on time, every time. And it's on 20 years, not 30, but even if it was 30 years, you have no say in who is over reaching...maybe someone who's taking it over 30 years wants to buy whats best for their future plans, you don't know and you should not be judging them.
 

Krilliano

Active Member
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Aug 25, 2019
Messages
72
The people I know who took 30 years did so in order to buy 2 houses in that term(15/15). My colleague bought 3 houses, 10 years left on the 30 year bond.
 

falcon786

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Jan 29, 2011
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10,200
I applied for a Homeloan 5 years ago and they declined as I haven't been with them for very long. I got my loan from Nedbank.

I waited 5 years and then applied to switch to FNB because I want everything to be together. They declined it...I wasn't applying for a new loan, I was applying to switch a home loan that's paid on time, every time. And it's on 20 years, not 30, but even if it was 30 years, you have no say in who is over reaching...maybe someone who's taking it over 30 years wants to buy whats best for their future plans, you don't know and you should not be judging them.

I'm not judging(even though I would never resort to 30 years lol even 10/20 years is too much for me!) I'm just shedding some light on how the bank views the situation.

Normally a bank might not view it that way but as far as I'm currently aware from various reports FNB feels that they're over exposed or sufficiently exposed to credit lending and they're being picky about who they lend and at what rates,they're not just dishing it out willy nilly.
 

F1 Fan

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Nov 8, 2010
Messages
5,075
Not a single client banking credit scoring are the same! (Its nothing to do with credit history as in credit4life or transunion).

The rate given by the “rate engine” look at your banking profile.

I got offered 6.5% (fixing my interest rate for 36 months).

My advise, dont compare friends and other clients rates. Put your best deposit down, pay all fees in cash! And then simulate a lower rate!
How come you didnt fix for the whole period?
 

Jehosefat

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May 8, 2012
Messages
1,494
How come you didnt fix for the whole period?
They won't let you. Usually banks wont allow you to fix for more than 60 months and even then it's usually at a much higher rate than the current floating rate.
 

Nimz

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Joined
Mar 13, 2008
Messages
5,248
I purchased my first place towards the end of last year and got a rate of 6.3%
My own bank (FNB) didn't want to do the full amount - went via OOBA and STD Bank offered the full amount at 6.3%

Not sure what's going on with FNB recently, it's like they don't want to make money
 

F1 Fan

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They won't let you. Usually banks wont allow you to fix for more than 60 months and even then it's usually at a much higher rate than the current floating rate.
Really? Didn't know that. I know that fixed rate option is normally more but I thought you could do it for the full term.

My thinking was that fixing it now at like 8 would still be a good deal over the long term. I think I currently pay prime minus 0.5
 

zerocool2009

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Sep 4, 2009
Messages
5,631
How come you didnt fix for the whole period?

Because I buy property cash every second year, just by regearing. And once fixed, your flexi facilty is frozen, as you cant prepay your bond!

For me personally a flexi bond is much more powerful than fixing it.
 

Jehosefat

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May 8, 2012
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Theoretically it's very possible to do it. You can get interest rate swaps out to like 40/50 years. The problem is that it's not cost effective for banks to offer it on such small amounts, especially when it's usually an access bond that can be paid up at any point. Also, to fix it for 20 years you would (very roughly speaking) have to fix it at what the expected average interest rate would be over the whole term. So assuming the expectations of the future interest rates are fairly accurate you will actually not end up getting much benefit from fixing from a total cost perspective (you would obviously get the benefit of a fixed, know payment up front though).
 

F1 Fan

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Because I buy property cash every second year, just by regearing. And once fixed, your flexi facilty is frozen, as you cant prepay your bond!

For me personally a flexi bond is much more powerful than fixing it.

Ah, didn't know that fixing has that impact. Actually then becomes like a shariah bond.
Your approach makes sense.
 

TofuMofu

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Joined
Aug 11, 2008
Messages
10,110
I purchased my first place towards the end of last year and got a rate of 6.3%
My own bank (FNB) didn't want to do the full amount - went via OOBA and STD Bank offered the full amount at 6.3%

Not sure what's going on with FNB recently, it's like they don't want to make money
They make too much money apparently.
 

Snyper564

Executive Member
Joined
Oct 1, 2008
Messages
8,210
ABSA just blew FNB out the water...

Updated:
FNB: 100% bond with 7.9% over 20 years with 8.1% over 30 years(My OWN bank)
ABSA - Option 1: 100% Bond with 7.00% over 30 years(Considering to move my salary here for further interest rate drop)
SA Home Loans: 95% Bond with 7.7% over 30 years(Backup deal)
Standard Bank: Nothing yet....slow AF with admin
I don't know if anyone mentioned it but these are 30 year loans... That's likely a big issue as well.
 
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