Home loans

CTBP

CTBP

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With the interest rates on the increase I thought it would be interesting to find out if anyone here has ever tried negotiating a lower rate with their banks?
 
Howzit, how you doing ?

I actually reviewed my one out of 4 bonds (to make it fixed), and the bank offered me 7%. I declined that actually.

The power for me is a flexi, if you can prepay it and use it smartly, you can win no matter what (but sadly if you didnt done your homework, bought now in the last 2 years, you better start thinking smart.

On the other hand, my bonds I use to write off against TAX, as its rental properties.

Even fuel, so if it goes up by 10%, I will still smile as SARS will refund me that portion.

Alot of guys hate me on this platform because I am FOR rates going up. Its not dumb, its LIFE, and its out of our control at the end of the day
 
The rule with banks are, you can apply every 6 months for rate reviews. You can accept the quote if you like what you see. So its for free aswell

With who do you bank ?
 
dj2381 said:
With the interest rates on the increase I thought it would be interesting to find out if anyone here has ever tried negotiating a lower rate with their banks?
Click to expand...
It can be done and most banks have a formal process for it. At FNB it is similar to a new application: you have to fill out some forms with your details. If you haven’t done it before, phone the home loan department and ask about the process.
 
3WA said:
It can be done and most banks have a formal process for it. At FNB it is similar to a new application: you have to fill out some forms with your details. If you haven’t done it before, phone the home loan department and ask about the process.
Click to expand...
Thanks, I am with FNB, the bond is a few years old and I have never bothered trying because they gave me a pretty good rate at the start, I'll definitely give them a call.
 
dj2381 said:
Thanks, I am with FNB, the bond is a few years old and I have never bothered trying because they gave me a pretty good rate at the start, I'll definitely give them a call.
Click to expand...

PM me, will forward you the application
 
So I filled in the form and sent it off to FNB and this is the nonsensical response I got.

"Kindly advised we only conduct rate review on customer variables rate not on staff rate. Kindly note that your account is on p-2.50% staff discount rate. You are already saving a lot on staff rate."

Currently on 10.50 % after the latest increase.
 
e4et said:
So I filled in the form and sent it off to FNB and this is the nonsensical response I got.

"Kindly advised we only conduct rate review on customer variables rate not on staff rate. Kindly note that your account is on p-2.50% staff discount rate. You are already saving a lot on staff rate."

Currently on 10.50 % after the latest increase.
Click to expand...

Just claim back all the extra you've paid by not being on p-2.5% :p
 
e4et said:
Think a " WTF" response to their email would yield any results ?
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Yeah. One way or another you gotta let home loans know that you're not on staff rates and then they'll probably review properly.
 
On the topic of home loans...how does the process work when applying for an invesment (rental) property home loan...
Owned property is simple enough.

But on rental, do you forecast rental as part of income expense in your application?
If so do you use average rental for that area ? Any tips?
 
DrX said:
On the topic of home loans...how does the process work when applying for an invesment (rental) property home loan...
Owned property is simple enough.

But on rental, do you forecast rental as part of income expense in your application?
If so do you use average rental for that area ? Any tips?
Click to expand...

Bank to bank differ with this. I know Fnb takes affordability into account.

My rule is simply. Buy it, without the thought of getting a tenant in (wordt case). If you can afford it all good. If not, rather rethink). If you have doubt in 1%... walk away

Been in this since 2010. Its a great money machine. Some work, but its fun
 
I was considering negotiating a new rate, but then did some math.
Currently I'm at Jibar + 3.6 so my rate is 9.4% (until the review later in the year when it will go up to 10.3)
Prime is 9.75%, so I'm Prime -.35 right now. In November all things staying the same I'll be prime +0.55.

So all in all my rate isn't bad right?
(FWIW my credit score is 659)
 
schuits said:
I was considering negotiating a new rate, but then did some math.
Currently I'm at Jibar + 3.6 so my rate is 9.4% (until the review later in the year when it will go up to 10.3)
Prime is 9.75%, so I'm Prime -.35 right now. In November all things staying the same I'll be prime +0.55.

So all in all my rate isn't bad right?
(FWIW my credit score is 659)
Click to expand...
JIBAR? is this SA Home loans not aware of anyone else using JIBAR

If im not mistaken SA home loans also has no flexi/access bond option this alone costs people millions....
 
schuits said:
I was considering negotiating a new rate, but then did some math.
Currently I'm at Jibar + 3.6 so my rate is 9.4% (until the review later in the year when it will go up to 10.3)
Prime is 9.75%, so I'm Prime -.35 right now. In November all things staying the same I'll be prime +0.55.

So all in all my rate isn't bad right?
(FWIW my credit score is 659)
Click to expand...

Nov 2022 interest rates are going up! (I can put money on it)
 
Snyper564 said:
JIBAR? is this SA Home loans not aware of anyone else using JIBAR

If im not mistaken SA home loans also has no flexi/access bond option this alone costs people millions....
Click to expand...
Yeah SA home loans. Id never used credit so the banks have me sh*t offers
 
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