Home Loan qualification questions

Ancalagon said:
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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I'm just sharing my experience so please don't read this as me telling you what to do:

At 0.10% difference I would look beyond just the better interest. On my bond that would only be a R40 pm difference and I would personally rather bank with FNB than Nedbank as I feel I get more value out of FNB. In both the town where I live and where I work, its easier to get to FNB (I work 50m from a large branch).

Just remember this is at least a 10 year relationship ahead of you, thats assuming you don't sell.

I also want to mention that you do not have to take the banks insurance, get your own. Your going to need bond and home cover (mine is R500pm for a R1.2 million house and a R665K bond). I know FNB works with Outsurance but I ended up getting from OOBA (my bond originator) who are underwritten by Hollard (who also underwrites all our other short term insurance).
 
To be fair, the other reason I want to go with FNB is that, because I have a discovery card, I can get 10% of my loan repayments back as cash. Thats a lot of money! Up to max of R1000.
 
Don't know if I missed this but was it a 100% loan?
Congrats btw. On your way to being a home owner :)
 
Ancalagon said:
To be fair, the other reason I want to go with FNB is that, because I have a discovery card, I can get 10% of my loan repayments back as cash. Thats a lot of money! Up to max of R1000.
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10% of your loan payments back as cash?!?!?!

Do tell me more about this.
 
Right.. even 8% is a promising figure...

I was already thinking of moving my homeloan to FNB... this starts sounding more appealing...

Must do some maths.
 
cbrunsdonza said:
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.
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Are you permanently employed or on contract?
 
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 not bad hey. I have one with SA Homeloans for = prime + 1.5%. Considering as well thats it's from FNB I must say thats pretty good - FNB is very strict! In my experience FNB is tough on negotiations. They have a take it or leave it approach which I seriously hate !
 
foschinni said:
Are you permanently employed or on contract?
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Full time. My wife is self employed and it was a ballache. She can earn double my salary some months yet we had to exclude her even though her business has never made a loss in 13 years and she has been paying the rent for 10 years which was R2K less than the new bond.
 
Still waiting for FNB's final offer. Got a final offer from Nedbank. Takes so long!
 
Yeah... contact FNB, tell them Nedbank have given you a final offer, and if they don't come back with a day... you will be going with Nedbank.
 
They came back to me after I reminded them about Nedbank. They offered prime plus 0.25%.

I recently moved my banking to Capitec, so I made them a counter offer - I said I would move my banking back as long as they gave me prime minus 0.25%. Will see what they say.

Otherwise, I said if that is not acceptable, I will accept the rate of prime plus 0.25% but stay with Capitec. But I will choose my own insurer.
 
Ancalagon said:
They came back to me after I reminded them about Nedbank. They offered prime plus 0.25%.

I recently moved my banking to Capitec, so I made them a counter offer - I said I would move my banking back as long as they gave me prime minus 0.25%. Will see what they say.

Otherwise, I said if that is not acceptable, I will accept the rate of prime plus 0.25% but stay with Capitec. But I will choose my own insurer.
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If your not an FNB client then they will give you 90% max bond. Discovered that the hard way (I'm also with Capitec).

I did go open an FNB account for the management of the bond and undecided if I will get my salary paid into it and then just use Capitec for day-to-day expenses. Will see.

As for insurance, I'm using the bond originator OOBA and their product is from Guardrisk and I've read a lot of got feedback on Hellopeter from them.
 
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cbrunsdonza said:
If your not an FNB client then they will give you 90% max bond. Discovered that the hard way (I'm also with Capitec).

I did go open an FNB account for the management of the bond and undecided if I will get my salary paid into it and then just use Capitec for day-to-day expenses. Will see.
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I've been an FNB client for over 10 years. Just recently I decided to move to Capitec because I was unhappy with FNB's service for the amount of money I was paying. I kept the account open though.

So, with the account open, they were willing to do a 100% bond. They havent got back to me about my proposed deal that would involve me returning my banking to FNB - all of it.
 
Ancalagon said:
I've been an FNB client for over 10 years. Just recently I decided to move to Capitec because I was unhappy with FNB's service for the amount of money I was paying. I kept the account open though.

So, with the account open, they were willing to do a 100% bond. They havent got back to me about my proposed deal that would involve me returning my banking to FNB - all of it.
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Im also contemplating on leaving them... Their fees are harsh. Great service though!
 
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