Homeloan issue

[Pho3nix]

Hi all,

Just got feedback on my application and I am looking at 12%.
Got prime-1 but because I'm a contractor got +4 soon after as the bank explained because I am added risk.

Now I am a little dejected as this place while awesome would be a bit of a bitch to take care off if the interest rate goes up 2%+ in the next 5 years.
It isn't at the top of my budget but the added interest makes the bond and "levies" closer to what I was prepared to pay for initially which worries me.

Parents say I should continue squatting while I decide if I'm going back to permanent work( not likely anytime soon) but I don't want to hurt myself financially by pushing the purchase through.

Would prefer not to rent because the prices currently are ridiculous in the North of JHB. 12% is the best offer I got from the 3 banks that got back to me. FNB apparently doesn't want my business :erm:
Place I want is 780k. Lonehill side.

Thoughts?

 

[Pakka]

Try SAHomeloans? Maybe they won't see you as that big a risk?

 

[Ocali]

im a contractor as well.. and i guess i would be sitting in this exact position towards the end of the year.. feck!.. let us know how it goes mate..

 

[GhostSixFour]

Try SAHomeloans? Maybe they won't see you as that big a risk?

They don't give out more than 95% loans at this point..

 

[Pakka]

Did OP say he needs 100% loan??

 

[Pho3nix]

Did OP say he needs 100% loan??

100% Preferred but can do 90-95%. Wanted to use the extra funds to fix some items around the abode. Will give SA HomeLoans a call and see what they say.

 

[GhostSixFour]

100% Preferred but can do 90-95%. Wanted to use the extra funds to fix some items around the abode. Will give SA HomeLoans a call and see what they say.

Try Ooba or Betterbond as well.

 

[R13...]

Investec will give you less prime (and 100%). They probably do look at how much you earn or are worth, but it won't hurt to try. RMB will also give you less prime but they're stricter than Investec (you will have to be earning upwards of a million or be a degreed pro).

 

[OrbitalDawn]

Investec will give you less prime (and 100%). They probably do look at how much you earn or are worth, but it won't hurt to try. RMB will also give you less prime but they're stricter than Investec (you will have to be earning upwards of a million or be a degreed pro).

How do you know?

 

[R13...]

How do you know?

Been there.

 

[Wyzak]

You should always apply to all of the banks (yourself, not through a broker) and then play them up against each other.

 

[Ancalagon]

When you say contractor, where does the majority of your income come from? Do you work on a permanent contract basis for one company, or do you contract out your services? Ie run a company that you contract yourself out through.

 

[hellfire]

OP - follow up with FNB. They can be slow.
Keep in mind that if your situation changes (for the better), you can request a rate review and hopefully that prime+3 will normalise to a more reasonable rate.

Investec will give you less prime (and 100%). They probably do look at how much you earn or are worth, but it won't hurt to try. RMB will also give you less prime but they're stricter than Investec (you will have to be earning upwards of a million or be a degreed pro).

Unless you're an accountant, you need to have a similar income to get a loan from Investec.

 

[Pho3nix]

When you say contractor, where does the majority of your income come from? Do you work on a permanent contract basis for one company, or do you contract out your services? Ie run a company that you contract yourself out through.

Contract out my services. 3rd party company sorts out contracts with client and tax issues etc. So I work, send through hours. Get paid for time worked.

 

[Pho3nix]

OP - follow up with FNB. They can be slow.
Keep in mind that if your situation changes (for the better), you can request a rate review and hopefully that prime+3 will normalise to a more reasonable rate.

Unless you're an accountant, you need to have a similar income to get a loan from Investec.

Might give them a shout again. Waay too slow though.

You should always apply to all of the banks (yourself, not through a broker) and then play them up against each other.

Tried that. Standard Bank banker worked her ass off to get me this believe it or not. Will prod her again

Investec will give you less prime (and 100%). They probably do look at how much you earn or are worth, but it won't hurt to try. RMB will also give you less prime but they're stricter than Investec (you will have to be earning upwards of a million or be a degreed pro).

Will give them a shout.

Try Ooba or Betterbond as well.

Dankie.
OOC : Get back to mafia. We miss you.

 

[R13...]

Contract out my services. 3rd party company sorts out contracts with client and tax issues etc. So I work, send through hours. Get paid for time worked.

So you work via a labour broker?

 

[Pho3nix]

So you work via a labour broker?

Yep. Too lazy to start my own company and deal with all this.

/not on the approved vendors list unfortunetly

 

[FlashSA]

Just been down this road - had an offer on a new property but could not sell my current house so pulled the plug - but I did get a successful bond with SA Homeloans in place. My current property is with them and that is why I will never use anyone else - they are AWESOME!

SA Homeloans only need 3 months bank statements, 3 months payslips - if they can see you are receiving the right amount of money in your bank account for those months then they will Approve in Principle and move to a deep credit check (confirm with employer etc etc).

My affordability was tight, but they were willing to take the 13th cheque in December and portion some of it into January and February's figures so that I got approved.

I am certain they will approve with a more favourable rate for you!

 

[GhostSixFour]

Dankie.
OOC : Get back to mafia. We miss you.

Yeah.. Don't have the time to read the legendary STS wall 'o' Text anymore - kept getting FOS'd because I could just skim through everything...