Speechless at Home Loan Interest Rate.

Great News. FNB my bank, came back with an offer of 100% Bond at 11.0%. This after they finally looked at my documents. They are now requesting that I get Life Insurance that protects my bond amount in case I die. What is the best place to use for this? Thanks again for all the great advice. It really did help me a lot.
 
Jacker said:
Great News. FNB my bank, came back with an offer of 100% Bond at 11.0%. This after they finally looked at my documents. They are now requesting that I get Life Insurance that protects my bond amount in case I die. What is the best place to use for this? Thanks again for all the great advice. It really did help me a lot.
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Make sure you get full life insurance. Doesn't have to be the best as long as FNB will accept it.
 
Jacker said:
Great News. FNB my bank, came back with an offer of 100% Bond at 11.0%. This after they finally looked at my documents. They are now requesting that I get Life Insurance that protects my bond amount in case I die. What is the best place to use for this? Thanks again for all the great advice. It really did help me a lot.
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Life insurance with FNB will boost your ebucks if you qualify. You will get part of the premiums back in ebucks
 
Lupus said:
Have you ever known anyone to ever actually negotiate a better interest rate on anything?
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it was quite common to be able to do this when interest rates were higher, especially during the mid naughties
 
Negotiation is still possible though, just takes some effort and the bank in question needs to be willing.

I dropped my rate by about 1.5% from the initial offer I got by being patient and giving each institution the opportunity to improve.

Could get another 0.25% lower if I was willing to move all my banking facilities to the bank I finally settled on.
 
Jacker said:
Great News. FNB my bank, came back with an offer of 100% Bond at 11.0%. This after they finally looked at my documents. They are now requesting that I get Life Insurance that protects my bond amount in case I die. What is the best place to use for this? Thanks again for all the great advice. It really did help me a lot.
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long as it covers your bond, check with your broker

they are cheaper
 
saturnz said:
it was quite common to be able to do this when interest rates were higher, especially during the mid naughties
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You can still do it (with FNB) once the home loan is at least two years old.

Nedbank adjusted mine three times before stating a "company policy not to adjust interest rates".

Part of why I left because their communication was piss poor.

You basically just need to prove that the original conditions at the time of application have changed and that you are now lower risk etc.

****

At point of application I negotiated 1% off by taking offers from various banks back and forth. I ran out of time as I needed guarantees in place for the new house otherwise I may have done better.
 
Jacker said:
Great News. FNB my bank, came back with an offer of 100% Bond at 11.0%. This after they finally looked at my documents. They are now requesting that I get Life Insurance that protects my bond amount in case I die. What is the best place to use for this? Thanks again for all the great advice. It really did help me a lot.
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Is this mandatory now?

I recall they use to make it seem mandatory but it really isn't.

It's a good idea either way though.

I took it with my very first home loan but never needed to provide it again after that and I bought a new place last year.
 
SauRoNZA said:
Is this mandatory now?

I recall they use to make it seem mandatory but it really isn't.

It's a good idea either way though.

I took it with my very first home loan but never needed to provide it again after that and I bought a new place last year.
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If the bond is below a certain amount yes it is. But if it is above that threshold then no.

Example, if the bond is R1 000 000, you need life insurance, but if it is R1 000 001, you dont.

Take into account, every bank differ when it comes to that requirement
 
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Jacker said:
FNB's system adjusted it accordingly saying that if you earn THIS much then THIS must surely be how much you spend on groceries.
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:crylaugh:
So sorry to hear your frustration, but what a useless bank. Artificial unintelligence.
Glad they came back with a bit of human intelligence.
Get the life insurance from any broker. Old Mutual is who does mine.
Life insurance is right up there in importance IMO.
 
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zerocool2009 said:
If the bond is below a certain amount yes it is. But if it is above that threshold then no.

Example, if the bond is R1 000 000, you need life insurance, but if it is R1 000 001, you dont.
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Aah that makes sense.

Although it seems backwards that the higher value would need less insurance.

Guessing it's to cover loss in costs if selling it off?
 
SauRoNZA said:
Is this mandatory now?

I recall they use to make it seem mandatory but it really isn't.

It's a good idea either way though.

I took it with my very first home loan but never needed to provide it again after that and I bought a new place last year.
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If you buy a home, make sure you know the SARS brackets also to pay SARS section (if applicable).

All the little things add up (and you can SAVE alot if you are bright)
 
Jacker said:
Hi there,

So I am a bit confused and frustrated at the moment. I will make this as short and sweet as possible in order for you to give feedback.

I am applying for my first home loan on a property worth R1,030,000. I put down a 15% deposit of R150,000. My TransUnion Credit Score is 970 out of 999 and I earn R50,000 a month with expenses of roughly R18,000 a month. I have healthy credit of a car loan with Wesbank of R350,000, I even got prime minus 1% on the car.

I also am a diligent payer of bills and have never missed a payment. I bank with FNB and I am a Private Client. I decided to use a bond originator that came highly recommended. They applied to all the major banks and after an initial hick up of my ID showing up as fraudelent, because someone faked my ID and applied unsuccessfully to open credit card accounts, and me getting it removed from the fraud list, they eventually came back 45 days later with the following:

FNB : Refused, affordability issues (I bank with them, bond originator realized instead of 4k for groceries they put 15k)
ABSA : Refused, affordability issues (Never came back after extra documents were submitted.)
Nedbank : Haven't even started application (Clearly not interested in my business)
Standard Bank : Loan Approved, Interest Rate of 12.35% offered.

Now I would just like to know if your gut is telling you my bond originator messed up or if somehow the banks have completely shut down on lending after the junk status announcement. Have you ever heard of a 12.35% interest rate offered when prime is 10.5% I am in a bit of a tight spot because the OTP is lapsing in the next 4 days and I only have STD Bank's offer on the table.

Thanks for the feedback.
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Apply directly because some banks don't like to work with originators. Remember they will always present the offer that gets them the best comm.
Times are tough though and banks are not handing out loans, I'd go directly with FNB as they are your bank and they give you all kinds of benefits for having all your accounts with them.

Does seem odd though as you do have all your ducks in a row. Deposit, salary, credit rating etc
 
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