Home Loan qualification questions

Ancalagon said:
How many banks did you hear that from? That's depressing.
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I kno :(. It's FNB & SA Homeloans. In my experience, SA homeloans are the best, so if they have given such a response I can forget about getting anything better from other banks.
 
I would continue to try anyway.

I have just submitted to FNB and Nedbank today. I'll submit to ABSA and Standard bank later on today.

Someone earlier in this thread mentioned that they got a loan on a 5 month contract. I am 7 months into a 12 month contract, and will be extending that contract next year (although no agreements have been signed).
 
Ancalagon said:
I would continue to try anyway.

I have just submitted to FNB and Nedbank today. I'll submit to ABSA and Standard bank later on today.

Someone earlier in this thread mentioned that they got a loan on a 5 month contract. I am 7 months into a 12 month contract, and will be extending that contract next year (although no agreements have been signed).
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Maybe I should take my chances hey. The banks did also mention that it depends on the terms of the contract. If your contract is renewable then they can be more lenient....
Please do give us feedback
 
I'll try my chances with Absa, Nedbank and Standard bank. FNB is very strict I know
 
I hope so! I'll definitely let you know.

Yeah you may as well.
 
ABSA declined my home loan - they said "Minimum lending criteria not met."

What does that mean?
 
Means they have minimum criteria (that they may not necessarily inform you of).... and you didn't meet them.
 
This is what the agent said:
Good day,

Our sytems work on scorecard and takes in consideration what facilities you have with the bank, if you score below a certain amount , application automatically declines.
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Why is that the banks "punish" you by not giving you a home loan, if you dont bank with them? Does that make any sense?

Surely business is business and they should be happy to be able to make some money from you?

EDIT: I dont bank with ABSA and never have.
 
My sister and her hubby tried to get a homeloan recently.
He is a self-employed consultant. He had 5 years' worth of payslips proving how much he makes every month at minimum and on average. Average = 3x minimum. In a good month he makes up to 5x.

The bank took one look at his status and his paperwork and decided that only 30% of his minimum would count towards the affordability calculation for the bond. Not his minimum. Not his average. And this despite the fact that his income is expense-free.

Because of that they could not qualify for the amount they needed to buy the house they wanted. The bank offered them a ridiculously small bond. Most of the banks refused completely, because he is a consultant. They would only deal with my sister and her salary.
 
No feedback from Nedbank or FNB yet.

Will submit to SA Homeloans tonight.
 
Ancalagon said:
No feedback from Nedbank or FNB yet.

Will submit to SA Homeloans tonight.
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I worked through a bond originator (OOBA) and glad I did. They did all the correct paperwork and negotiations as they only get paid by the bank if I accept the bond. They even got Standard Bank to give me a better deal after I personally approached them.

SA Homeloans went direct (they don't work through bond originators) and they came back with the best deal but OOBA got FNB to dangle a bigger carrot in front of me.


All the best, I just bought my first home this year and wish it was easier for others to do the same.
 
AnibugZA said:
My sister and her hubby tried to get a homeloan recently.
He is a self-employed consultant. He had 5 years' worth of payslips proving how much he makes every month at minimum and on average. Average = 3x minimum. In a good month he makes up to 5x.

The bank took one look at his status and his paperwork and decided that only 30% of his minimum would count towards the affordability calculation for the bond. Not his minimum. Not his average. And this despite the fact that his income is expense-free.

Because of that they could not qualify for the amount they needed to buy the house they wanted. The bank offered them a ridiculously small bond. Most of the banks refused completely, because he is a consultant. They would only deal with my sister and her salary.
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Similar story. Wife is self employed (13 years in business) and has been the bread winner. We got penalised at SA Homeloans because of this (they insisted we had to jointly apply for the bond). OOBA told me not to include my wife and we got the bond approved within a 24 hours.

Consider the fact that my wife earns double my salary and that up until 6 months before I applied for the bond, I was earning 30% less than what I did then.
 
F1 Fan said:
SA Homeloans have a different way of calculating their rate..
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There rate is not fixed and one of the reasons I turned them down. They give you say 9% today and then in two years time they charge you 10% or more. I think the contract said they can review it every 6 months.

They don't work on the repo rate, instead the money market.

Too risky for us.
 
Ancalagon said:
I would continue to try anyway.

I have just submitted to FNB and Nedbank today. I'll submit to ABSA and Standard bank later on today.

Someone earlier in this thread mentioned that they got a loan on a 5 month contract. I am 7 months into a 12 month contract, and will be extending that contract next year (although no agreements have been signed).
Click to expand...

I would just like to add that every 3 months the banks all change their lending criteria. I discovered that what applied to my friends with their bond applications in Jan/Feb this year did not apply to me in June. My bond originator confirmed this as well.

This means that if you get rejected today, don't be put off trying again in a few months.
 
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