Homeloan Interest Rates

quovadis

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Makes sense, but knowing a few bankers myself I got the idea the bank will never offer you anything at the best deal they can do. Their business is to milk you.
Yip. They're there to make a profit. The bankers/sales people will try and get the lowest rate they can in order to land the deal. Credit will push for as high a rate as they think they can get away with, in order to grow the book.
Well that's not my personal experience. I've always gotten the most competitive offer from my bank directly and they still make a substantial profit.
 

Neuk_

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We managed to get Prime less 1.05pp in 2017 but we had a large deposit.
 

Koosvanwyk

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Who in their right mind will still be buying property in the current environment in SA?
 

Thor

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Who in their right mind will still be buying property in the current environment in SA?
Myself, singed the offer to purchase today.

Land is the most valuable piece of thing on the face of this earth. People multiply, land is finite.
 

orin76

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Accepted prime plus 0.25% with a 5% deposit in Febuary. Best offer was prime minus 0.25 from Nedbank but they had special conditions which were deal breakers.

It's worth mentioning that, at the time, I was pretty much at the limit of what the NCA allows banks to lend given my income.
 

Snyper564

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Accepted prime plus 0.25% with a 5% deposit in Febuary. Best offer was prime minus 0.25 from Nedbank but they had special conditions which were deal breakers.

It's worth mentioning that, at the time, I was pretty much at the limit of what the NCA allows banks to lend given my income.
Im curious what were the deal breakers?
 

beefymoocow

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Just outta curiosity does anyone have some research on Islamic and traditional home loans and which is cheaper. I know Islamic uses a profit sharing term.
 

orin76

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Im curious what were the deal breakers?
There was actually only one deal breaker. I had an existing townhouse bond and was in the process of selling the property when I applied for the new bond. I did not set the sale of the townhouse as a condition on the OTP, but Nedbank accepted my application with the condition that I had to sell the townhouse before the new property is registered.

Accepting the Nedbank offer would have contravened the OTP. Nedbank were given the OTP as part of my application so I don't know why they bothered accepting the application in the first place.

At least I managed to use their offer to get other banks to drop their interest rate.
 

Messugga

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Well that's not my personal experience. I've always gotten the most competitive offer from my bank directly and they still make a substantial profit.
I build the software that the bankers and the credit desk uses in home loan applications and I attend their credit forums fairly regularly. Trust me, the bankers have to justify lower interest rates than what the models pop out at default.
 

Messugga

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Who in their right mind will still be buying property in the current environment in SA?
I'm looking at buying. There are interesting products if you know where to look and what to ask for, which allows for no more risk than being black listed. And my feeling is that if the country goes wrong end up with expropriation without compensation, or implodes economically, they can black list me all they want but I won't be in the country anymore.
 

quovadis

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I build the software that the bankers and the credit desk uses in home loan applications and I attend their credit forums fairly regularly. Trust me, the bankers have to justify lower interest rates than what the models pop out at default.
Well then it must be a mystery or they must really like me.
 

lsheed_cn

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Myself, singed the offer to purchase today.

Land is the most valuable piece of thing on the face of this earth. People multiply, land is finite.
Until the government reneges and steals your property, without compensation.
Now isn't the time to buy in SA.
 

calypso

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Can you renegotiate your interest rate after 5 years?
You can renegotiate any time you like. They just wont always give you a better rate. Best is to come in with a better offer from another bank.
 
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