Offer to purchase question

Question, if the bank loan from your preferred bank does not get approved for some reason, will the sign offer still be binding?

What happens if bank approves the loan but the interest rate is too high?
 
Dark Agent said:
Question, if the bank loan from your preferred bank does not get approved for some reason, will the sign offer still be binding?

What happens if bank approves the loan but the interest rate is too high?
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Your OTP should be subject to approval of a bond. Ideally, it should be subject to approval at a bond with an interest rate stipulated... if the rate is too high and this is not stipulated in the OTP, you're still committed as the condition has been met.
 
What if the higher interest rate puts you on a higher repayment that you can't afford?
 
Toxxyc said:
What if the higher interest rate puts you on a higher repayment that you can't afford?
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unless the int rate is in your otp you will be bond by it as it was approved, same issue with transfer costs that cant be covered ppl end up doing fancy foot work with credit cards personal loanss etc because of this
 
I only found this thread just 2 days after I signed offer. I screwed up but not by a huge margin so will let it play out.
 
Toxxyc said:
What if the higher interest rate puts you on a higher repayment that you can't afford?
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The credit act stipulates maximum credit that may be extended to you. If the higher interest rate (based on the risk to the bank) pushes your repayment beyond affordability then the bank will simply decline to offer the loan.
 
Speedster said:
The credit act stipulates maximum credit that may be extended to you. If the higher interest rate (based on the risk to the bank) pushes your repayment beyond affordability then the bank will simply decline to offer the loan.
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I find there's a significant difference between what the NCR considers affordable and what is actually affordable :laugh:
 
Sinbad said:
I find there's a significant difference between what the NCR considers affordable and what is actually affordable :laugh:
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This.

If I took out the maximum amount that the NCR told me I could get, I would probably need to sacrifice some nonessential things...like food, or maybe water.
 
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Toxxyc said:
Yeah I'm worried the best I get is like Prime + 2% or whatever. In that case, I simply can't accept, because I can't afford that. I'm not being difficult, that's just really how anal I am about this deal.
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Toxxyc said:
What if the higher interest rate puts you on a higher repayment that you can't afford?
Click to expand...

Speedster said:
The credit act stipulates maximum credit that may be extended to you. If the higher interest rate (based on the risk to the bank) pushes your repayment beyond affordability then the bank will simply decline to offer the loan.
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Pretty much this.

I think the maximum payment that they'll approve is 1/3 of your gross, but they do take into account your expenses and stuff like that. They ask for bank statements and a breakdown of your monthly expenses (including existing debt such as vehicle finance). If you can't afford the bond, they won't give it to you.

It may be worth going to TransUnion or Experian and getting your credit score. If it's good, then there's little chance that you'll get prime+2. I got a preapproval from ABSA for prime-0.6, totally out of nowhere.

This is obviously my own opinion, and I don't know the specifics of your case, but it seems to me that banks are pretty keen to lend at the moment, especially if you have enough deposit that you don't need a 100% bond.
 
So I spend this afternoon going back in time.

Purchase price was R1150 000 (R12000 in transfer duty)

Altered price R1149 999 (R10500 charged)

So I think the attorney’s made droog.

Anyway, my win
 
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