Moving homeloan

[fdaniels]

So I am going to move my homeloan to save a couple of bucks. How does one go about doing this? This is what I know.

I need to give my current bank 3 months notice in order to prevent them from charging me for 3 months additional interest. I need to reapply for my home loan with the second bank. Once approve there will be fees to be paid. As far as I know that will only be the initiation fee and the Bond Registration fees. I can't remember the exact numbers, but I believe that the Bond Registration fees were around R17k.

1. Would I also be liable for the transfer fees? I wouldn't think so.
2. What happens once I notify the bank about my intention of moving my bond? Would I then be liable to pay the entire bond remainder at the end of that 3 month window?
3. At which point would I start applying for my bond with the new bank?

Thanks guys. These bank matters are so confusing.

 

[atomcrusher]

The bank that you wish to move the home loan to should be able to give you all the answers, and the steps to be followed to cancel & re-initiate the loan.
If they can't do the above, I would think twice about using them to finance your home

 

[ToxicBunny]

So I am going to move my homeloan to save a couple of bucks. How does one go about doing this? This is what I know.

I need to give my current bank 3 months notice in order to prevent them from charging me for 3 months additional interest. I need to reapply for my home loan with the second bank. Once approve there will be fees to be paid. As far as I know that will only be the initiation fee and the Bond Registration fees. I can't remember the exact numbers, but I believe that the Bond Registration fees were around R17k.

1. Would I also be liable for the transfer fees? I wouldn't think so.
2. What happens once I notify the bank about my intention of moving my bond? Would I then be liable to pay the entire bond remainder at the end of that 3 month window?
3. At which point would I start applying for my bond with the new bank?

Thanks guys. These bank matters are so confusing.

You are only liable for bond registration fees and such.. so about R17k sounds right.

Talk to your new bank about the process... they'll help you.

 

[fdaniels]

Cool guys. Thanks for the feedback. I'll certainly contact them, for me it is just a matter of timing confusion. I phoned by banker earlier to ask her but didn't give me details. I just write her an email now, asking for some clarity on the matter.

I don't know why I didn't think about reverting back to her

 

[Jehosefat]

So I am going to move my homeloan to save a couple of bucks. How does one go about doing this? This is what I know.

I need to give my current bank 3 months notice in order to prevent them from charging me for 3 months additional interest. I need to reapply for my home loan with the second bank. Once approve there will be fees to be paid. As far as I know that will only be the initiation fee and the Bond Registration fees. I can't remember the exact numbers, but I believe that the Bond Registration fees were around R17k.

1. Would I also be liable for the transfer fees? I wouldn't think so.
2. What happens once I notify the bank about my intention of moving my bond? Would I then be liable to pay the entire bond remainder at the end of that 3 month window?
3. At which point would I start applying for my bond with the new bank?

Thanks guys. These bank matters are so confusing.

1. No, ownership of the property is not being transferred
2. You usually have 9 months from the end of the 3 month window in which you can settle the bond with no penalty fees (12 months from date of notification)
3. You can start it whenever. If you have not notified your current bank, the new bank's lawyers will notify them and they will only cancel the bond once the notice period is up if you ask them to wait until then. Otherwise they will cancel it as soon as everything is signed and ready

 

[fdaniels]

Brilliant! Thanks for the response.