We didn't get the 100% BOND!

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ALFAHOLIC

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Well, we didn't get the 100% bond as we'd hoped for.

Of the 4 banks, only 2 came back to us.

ABSA, who I bank with, didn't give us a cent!
FNB, didn't give us a cent
Nedbank, gave us 90% of R640k
SB gave us 90% of R600k


SB evaluated the house at R600k...and only gave us 90% of R600k because;

1) we are NOT SB clients
2) we have no credit (what does a car, rent and a cell phone contract mean? Oh, and a credit card?)

FNB said no because my wife's work is not listed in the local phonebook! Yes...no VAT number or anythign from that workplace applies, not even payslips AND bank statements of the last 6 months! They simply said they can't verify whether she get's paid consitantly or not...lol!

WOW...then the estate agent tells us to go with Nedbank...and we asked why? Why not go with SB because the house price is now LOWER? No, because the owner won't accept R600k, then we said, no thank you and goodbey!

I've asked SB to give us the scoring and the criteria, they haven't got back to me just yet. I'd want to know what I must work on to get a 100% loan, we are 1st time buyers...

So now we are going to cool it a bit, let the baby come and then we'll see if we can manage with the small roomietjie, and if that get's hectic, we'll start on our quest again to look for a house!
 
Interesting. Thanks for the update. This is the sort of information that we should be sharing. The reason that banks are able to rip us a new anus when we approach them is because only people in the 'know' are really able to negotiate with them.

I don't think that the Bank's estimate of the house's value really enforces the price that you pay for it. You will still need to negioate with the seller. It is always a good thing to take time out to consider one's options and wait for a better deal.

When you get your scoring and criteria back it should help you address the 'problem areas' according to the bank. I've not done the whole buying my first home thing yet. This is why I appreciate threads like this! :D
 
Sure thing man, I really doubt they'll share with me my criteria, here's to hoping they will...on another strange but interesting note, my friend signed an offer to purchase a house for 1.01 millie, the bank, SB, went and evaluated the house, and came back with remarkable findings...that house, was evaluated by SB as being worth only R850k! Yes...from 1.01 milli to R850k...and thus SB gave them a 90% loan on R850k. They are 2cnd time home buyers and also not SB clients...but what is amazing is that they were somehow told by SB that IF they get another bank to value the house at R850k, they can hold the seller to get a new offer to purchase for the actual value of the house. This time, for R850k...where did you hear such crap?
 
ALFAHOLIC said:
Sure thing man, I really doubt they'll share with me my criteria, here's to hoping they will...on another strange but interesting note, my friend signed an offer to purchase a house for 1.01 millie, the bank, SB, went and evaluated the house, and came back with remarkable findings...that house, was evaluated by SB as being worth only R850k! Yes...from 1.01 milli to R850k...and thus SB gave them a 90% loan on R850k. They are 2cnd time home buyers and also not SB clients...but what is amazing is that they were somehow told by SB that IF they get another bank to value the house at R850k, they can hold the seller to get a new offer to purchase for the actual value of the house. This time, for R850k...where did you hear such crap?
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fdaniels said:
Interesting. Thanks for the update. This is the sort of information that we should be sharing. The reason that banks are able to rip us a new anus when we approach them is because only people in the 'know' are really able to negotiate with them.

I don't think that the Bank's estimate of the house's value really enforces the price that you pay for it. You will still need to negioate with the seller. It is always a good thing to take time out to consider one's options and wait for a better deal.

When you get your scoring and criteria back it should help you address the 'problem areas' according to the bank. I've not done the whole buying my first home thing yet. This is why I appreciate threads like this! :D
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ALFAHOLIC said:
ABSA, who I bank with, didn't give us a cent!
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We also bank with ABSA, We also applied for a home loan the beginning of the year, ABSA gave us the most hassles, practically lied to us trying to sell me life insurance, nagged me about that for months and they gave me the worst offer out of the 6 banks we tried.

I put them on hellopeter, complained and moaned, they called me back with some pre written statement about there policies, "however they were willing to give me an extra 2%" (still leaving them at the bottom of the list) I told the woman I have no further interest in dealing with ABSA, promptly put a reducing overdraft onto my bank account and am now researching the best bank for me that is not part of the Barkley's group of vampires.

Been banking with them for 8+ years now.

Nedbank gave me the best offer.
 
All I can say is SA Home Loans.

I contacted them an the banks when we were buying. I was totally pissed off with ABSA who told me I would get a better rate by going through a mortgage originator. Worked out to our advantage in the end. 100% bond with a better rate than ABSA offered us directly.

My sister in law and her fiance got 90% as well when only he applied. When they both applied they were rejected. He basically threw his toys out the cot and threatened to leave his bank (not sure which one) and now they financing 100%

Really irritating that people have to complain before getting something when it could have just happened in the first place!
 
The banks are useless when it comes to home loans. They'll try and nail you for as much as you can.

FNB, the ones I bank with, offered us the amount I requested (620k), but at 14.3% interest!
Absa and Nedbank both offered 90%, at a similar interest rate, and SB offered the full amount at 13.9%.

I then applied at SA Homeloans, and everything went so much smoother. Not only did I get the full amount at 10% (prime), but when they evaluate your credit score, they look at the combined score. In our case, my gf had no credit score at all, because she had no debt. But my credit score was enough to meet the required combined score, so we were approved - she only had to provide her proof of income and bank statements. With the banks it's different - they evaluate your individual scores.
 
Also in the process of applying for a bond. Fortunately I only need a bond for about 65% of the property value.

Absa came back with a letter that they are willing to do business, but no rate.
Nedbank and Standard Bank came back just above prime.
FNB (who I bank with, for 4 months after moving away from Absa) came back just below prime.

Had the evaluator from FNB at the property this morning, so hopefully I'll have the final verdict by next week.
 
the whole "home loans" and home buying story is a BS money making racket if you ask me.
Buying a home of lets says R730k.....
You pay in the region of R41k just on "fees" to get it into your name. Included in the 730k is the agents commission, which makes you wonder how much the owner is walking away with.
To top all this off, you need a good "credit score" which basically means you must have supported the banks and other institutions in the past by having credit with them, which I thought was a bad thing.
 
ambroseg1 said:
the whole "home loans" and home buying story is a BS money making racket if you ask me.
Buying a home of lets says R730k.....
You pay in the region of R41k just on "fees" to get it into your name. Included in the 730k is the agents commission, which makes you wonder how much the owner is walking away with.
To top all this off, you need a good "credit score" which basically means you must have supported the banks and other institutions in the past by having credit with them, which I thought was a bad thing.
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While the whole transfer fee things is BS.

The agents commission is your problem if you are a seller and went with a agent and the buyers if they price a house not priced correctly. So it only affects you if you requested the service.

Credit is a good thing if you can manage it properly because it shows you are not some sleazebag chancetaker.
 
ALFAHOLIC said:
they were somehow told by SB that IF they get another bank to value the house at R850k, they can hold the seller to get a new offer to purchase for the actual value of the house. This time, for R850k...where did you hear such crap?
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Not sure who thought up this bank valuation BS story. It has nothing to do with the purchase price agreed. It serves 2 purposes:
  1. Bank covers its ass for NCA purposes.
  2. If things hit the fan then the bank takes the house...so they want to know how much its worth.
These valuations can easily be off by a few 100k...they don't need to get each individual valuation right...ballpark figure is perfectly fine for the above two purposes.

the_don46 said:
All I can say is SA Home Loans.
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supersunbird said:
Have you tried SA Homeloans? My interest rate beats any of what the other banks could offer.
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I'd be very careful with that. This lower interest rate isn't achieved with chanting & good karma. As far as I can tell its a side-effect of them using JIBAR and not Prime. This means they don't have to hedge the difference & thus save money. In layman's terms this means you get a better rate, but at a higher financial risk to you. Also, Celine reported some seriously dodge things about them in connection with this...you can search through her post history.
 
Sadly super they will rather give people with loads of debt bonds and finance than some random person who has 0 debt.

Always amazed me that you have to be in debt to acquire more and if you are not in debt you cannot get into debt via house or car :D.
 
HavocXphere said:
I'd be very careful with that. This lower interest rate isn't achieved with chanting & good karma. As far as I can tell its a side-effect of them using JIBAR and not Prime. This means they don't have to hedge the difference & thus save money. In layman's terms this means you get a better rate, but at a higher financial risk to you. Also, Celine reported some seriously dodge things about them in connection with this...you can search through her post history.
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I'm not sure how dodgy it could be with Standard Bank and JP Morgan each holding a 44% share in the company.
 
HavocXphere said:
I'd be very careful with that. This lower interest rate isn't achieved with chanting & good karma. As far as I can tell its a side-effect of them using JIBAR and not Prime. This means they don't have to hedge the difference & thus save money. In layman's terms this means you get a better rate, but at a higher financial risk to you. Also, Celine reported some seriously dodge things about them in connection with this...you can search through her post history.
Click to expand...

With regards to that thread of Celines its a product they offer and if you choose to use it its your own problem, I'll never consider using it except if things were unmentionably tight....


The JIBAR rate on SA Homeloans changes every 3 months, just like the Repo rate changed every 3 months till last here where they made the Repo rate meetings more frequent. In general over the past 2 years they have kept in line with the Repo rate declines. In fact, if the repo rate start climbing you at least have some warning if you on the JIBAR 3 months cycle so you can prepare yourself.
 
supersunbird said:
While the whole transfer fee things is BS.

The agents commission is your problem if you are a seller and went with a agent and the buyers if they price a house not priced correctly. So it only affects you if you requested the service.

Credit is a good thing if you can manage it properly because it shows you are not some sleazebag chancetaker.
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The transfers fees etc are just fkcing rip off. I can't believe people have to pay that much money on "transfer fees". WTF!
 
To change the direction of the conversation, I can't believe people are finding houses for under R1m!!! Or is JHB that much cheaper than CT? Or is most JHB based people buying semi-detached townhouses??
 
jvk said:
sent you a pm
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jvk said:
if you have any questions about credit for Homeloans then drop me a pm and i'll be glad to assist.
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The benefit of a public forum is that all can benefit from the sharing of problems and solutions.... it really irks me when some individuals do things like this! Unless it is genuinely confidential information then why the hell not share it with everyone?
 
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