Home Loan qualification questions

FNB came back with an offer of prime plus 0.55%. At least it is an offer, but to be honest, I was hoping for better. Nedbank says they should have an answer for me tomorrow morning.

Any advice on how to negotiate with FNB, to try to get it down? Things in my favour are that my credit record is good, and my salary more than covers the bond. Things against me might be the fact that I am on a fixed term contract now.
 
Prime+ on a 100% bond is pretty normal.

You can beat it down by 0.25% every year.
 
Prime +0.55% is actually a pretty good rate...

At least you have an offer, which you can now use to negotiate with Nedbank....
 
Thanks guys!

I'll see what Nedbank has to say tomorrow, but yeah, I think if FNB ends up offering a better rate (which I expect to be the case), then I'll take it.

I think right now it is a 98 or 99% bond or so. I could reduce that to 95%, the problem is that there are other things I want to use that money for, such as education (hopefully studying an MEng).
 
Ancalagon said:
Thanks guys!

I'll see what Nedbank has to say tomorrow, but yeah, I think if FNB ends up offering a better rate (which I expect to be the case), then I'll take it.

I think right now it is a 98 or 99% bond or so. I could reduce that to 95%, the problem is that there are other things I want to use that money for, such as education (hopefully studying an MEng).
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Good luck dude... if you do take it, then welcome to the joy of homeownership :)
 
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Ancalagon said:
FNB came back with an offer of prime plus 0.55%. At least it is an offer, but to be honest, I was hoping for better. Nedbank says they should have an answer for me tomorrow morning.

Any advice on how to negotiate with FNB, to try to get it down? Things in my favour are that my credit record is good, and my salary more than covers the bond. Things against me might be the fact that I am on a fixed term contract now.
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Thats a damn fine rate. I was also disappointed that I originally got prime + 0.65% from FNB in June but everybody else was coming back with + 1.5% - 3.0%

Very few are lucky enough to get close to prime.

Just remember that when interests rates are low, the banks make less profit and are reluctant to go under prime. Its also risk based.

I ended up getting prime + 0.15% from FNB by playing SA Homeloans against them. That 0.5% saving ended up being a couple of hundred rands a month (my rates bill).

Also the banks look at the LTV (Loan To Value) ratio when making you an offer. The more undervalued your house, the less risk. Also once your outstanding capital is 80%, they will gladly allow you to renogiatate a better deal. Also keep in mind with pending credit amnesty its going to be damn hard next year to get a bond and I doubt we will see anything close to prime + 1% for 90%+ bonds for a long time to come.
 
Ancalagon said:
Thanks guys!

I'll see what Nedbank has to say tomorrow, but yeah, I think if FNB ends up offering a better rate (which I expect to be the case), then I'll take it.

I think right now it is a 98 or 99% bond or so. I could reduce that to 95%, the problem is that there are other things I want to use that money for, such as education (hopefully studying an MEng).
Click to expand...

I understand 100% where you are. We ended up taking a 90% bond and throwing every cent we could get into the deposit. Just last night we were saying we need to unplug the freezer as its now empty, no money to stock it up. We are now down to eating mielie pap and taking our own food to work.

And you know what, we have not been this happy in years as the new house keeps us too busy to give us time to worry about it.

ToxicBunny said:
Good luck dude... if you do take it, then welcome to the joy of homeownership :)
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+1
 
Just avoid doing any major renovations anytime soon... they're a different beast in terms of stress....

I'm enjoying the process immensely but it adds a fair chunk of stress that I could do with out.
 
ToxicBunny said:
Just avoid doing any major renovations anytime soon... they're a different beast in terms of stress....

I'm enjoying the process immensely but it adds a fair chunk of stress that I could do with out.
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I would like to upgrade the kitchen, I must say. It is pretty tiny. Its a cut and paste summercon kitchen. Might do that next year.
 
Nedbank has come back with Prime + 0.40%. Now how do I play them off each other?
 
Ancalagon said:
I would like to upgrade the kitchen, I must say. It is pretty tiny. Its a cut and paste summercon kitchen. Might do that next year.
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Upgrading a kitchen is simple...

I'm talking about building... new extensions etc etc....

My "front" yard currently looks like this :

6bztYKe.jpg
 
Ancalagon said:
Nedbank has come back with Prime + 0.40%. Now how do I play them off each other?
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Just email FNB and attach the Nedbank offer. They got back to me very very quickly when we did it. But don't close any doors with either one as they might just sweeten the deal some more.

I personally liked FNB on how I could manage my bond online with extra payments so was glad I went with them
 
Ancalagon said:
I would like to upgrade the kitchen, I must say. It is pretty tiny. Its a cut and paste summercon kitchen. Might do that next year.
Click to expand...

We got advised to wait two years on any major upgrades and after 3 months in the house I agree. We have changed our mind a 100 times on what we want to do but its great fun.

I'm currently just pricking around with the garden for the next year and will only start alterations in 2015 - first up is a full bedroom, lounge, bathroom and kitchen in the loft (got the idea from my neighbour who built his own and we have the same type of house)
 
How many times can you go back and forth? Like, lets say FNB beats Nedbanks offer. Can I then go back to Nedbank, and ask them to beat FNB's offer?

I suppose you go until one of the banks says, "We arent willing to go any lower."?
 
Yup.. pretty much..

And completely agree on the alterations, wait at least 2 years.. I waited nearly 3 before I jumped on the bandwagon...

It will take me 2 years to finish my "grand" plan for the property, but it will end up being one of the best houses in the neighbourhood when I'm finished, so hopefully spur some of the neighbours to do similar to their properties :)
 
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Ancalagon said:
How many times can you go back and forth? Like, lets say FNB beats Nedbanks offer. Can I then go back to Nedbank, and ask them to beat FNB's offer?

I suppose you go until one of the banks says, "We arent willing to go any lower."?
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Pretty much so and you will get to that point in less than a day. I was surprised how quick the industry is.
 
Still waiting to hear back from FNB. They said they have completed the valuation.

EDIT: FNB came back with 9%. They didnt even beat Nedbank's 8.90%. Disappointing.
 
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Then if Nedbank have given you a similar percentage homeloan, take it...

And tell FNB precisely why you are declining their offer.
 
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