We didn't get the 100% BOND!

the_don46 said:
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??
Click to expand...

No, prices are high here too. The traditional townhouses, simplexes and duplexes that sold for R200-R300k about 10 years back, now range between R600-R900k.

I recall my brother in law buying a 3 bedroom cluster in Lonehill for R350k in 2002, he sold it for R650k in 2005. You won't be able to buy it for under R1m now.

Obviously the area matters though, so it would also depend where everyone here bought.
 
Banks grant loans based on your credit history.

If you can't prove that you can manage credit well, they can't know for sure and you are most likely going to end up with a 90% bond at a bad interest rate, or even worse, no bond approval at all.

Banks build fancy models and scorecards to determine who gets loans and at what rate, obviously it cannot predict perfectly. You might manage your finances perfectly and never had any credit before in your life, but somebody with the same credit score (or probability of default) as you might be terrible, and there are far more people in this category than you. What other option does the bank have but to offer all of you the same interest rate pricing and loan % options?

The losses banks sustain when an account goes bad (handing over to legal, reposession and finally sheriff's auction) are huge. So only giving 90% loans to most clients is a way of protecting itself. Can you blame the bank given the effect the financial crisis had? Homes that were bought for R2m (with balances outstanding of R2.5m+) are being sold at distressed sale auctions for less than a million.

My advice is sign up for a few store cards (the 6 months no interest type), buy on them, manage it properly. Get an overdraft on your cheque account even if you don't need/use it. Get a credit card and manage it properly (Pay full balance outstanding before your due date and you'll pay no interest).

All the banks are doing 100% bonds to their better clients. Be one of them.

I know the HL business rather well, so feel free to ask more questions should you have any.
 
SA Homelones sounds like one of those dodgy homeloan companies in the US that caused the credit crisis. I can understand why someone wants to own a home. But remember that this is only sustainable in a market with continuously rising prices. Yes SA may still be in that zone. when house prices start to fall, then the value of these loans on SA Homeloans books will fall and they will start to experience refinancing problems. Having loans at less than 100% value protects banks from this, and you too, because when they fail, you could lose your home because the loans can be recalled or interest rates increased.

South Africa seems to be one of the last countries where you can get 100% loans. Probably indicative of it's high interest rates and inflation. In an odd sense you don't want interest rates and inflation to drop to fast, as this could lead to the SA Homeloans business model failing for the reason I said above.
 
killadoob said:
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.
Click to expand...

Because when you don't owe them anything, they can't tell you $h1t. And they don't like that at all.
 
Try a Bond Originator (they have a working relationship with the Bond dept of all banks and can get you the best rate). No I am not one and cannot recommend one, but a friend of mine has used them on a few occasions with very good results. What do you have to lose?
 
Try Virgin Money. They gave me the best deal out of all the banks and were very quick to respond (via email).
 
We had a very difficult time when we bought our house last year. 1st time buyers, R750k+ income per year, R860k house.
Best deal was from Nedbank, 90% loan.

I heard from a reliable source that the banks don't give 100% loans anymore.
 
You battled to buy a R860k home with R750k income?

I'm fscked :(
 
The income wasn't the issue, we needed a 100% loan at the time, and the banks refused.

The thing which doesn't make sense is that they won't give 100%, but I got the outstanding 10% from the SAME bank via a personal loan and it took only one day to arrange! At least with the home loan they have security, the house...?
 
When you bought your house there wasn't 100 % loans anymore. It was reinstated this year round about the time I bought my house. I applied for a 100% loan but only got 90%
 
lerouxh said:
The income wasn't the issue, we needed a 100% loan at the time, and the banks refused.

The thing which doesn't make sense is that they won't give 100%, but I got the outstanding 10% from the SAME bank via a personal loan and it took only one day to arrange! At least with the home loan they have security, the house...?
Click to expand...

Your personal loan would probably have been at a higher interest rate would it not?
 
Correct, the personal loan was at a much higher rate.
Anyway, I don't want to move again soon. It took weeks to arrange the homeloan and we almost lost out on a good deal. It was a horrible and stressful experience for us.
Also, ICT was holding us back too. My wife had R50 outstanding for years from somewhere which we didn't even know about!
 
Shame here guys. got also a 90% bond. we negotiated with the sellers and got 10% of the total price off. i bank with SB and got 10% prime rate.
believe me the system is fakked up. its like a lucky draw when you applying for a home loan at different banks. the transfer fees and all other fees are a load of bull.

1st time buyers should be given a special rate to encourage them in buying property. why must you also be punished because you have no debt.the system suck big time.
i think our goverment need to wake up and smell the coffee

bloody agents, bastards
 
Stevie G said:
Shame here guys. got also a 90% bond. we negotiated with the sellers and got 10% of the total price off. i bank with SB and got 10% prime rate.
believe me the system is fakked up. its like a lucky draw when you applying for a home loan at different banks. the transfer fees and all other fees are a load of bull.

1st time buyers should be given a special rate to encourage them in buying property. why must you also be punished because you have no debt.the system suck big time.
i think our goverment need to wake up and smell the coffee

bloody agents, bastards
Click to expand...

A friend of mine bought a property a year or two back and managed to get a 108% loan as a first time buyer. Basically it included a full 100% loan plus all associated fees. I was hoping to get the same, but having read through the comments here it seems like that is now a pipe dream.
 
supersunbird said:
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....
Click to expand...
The crux of the thread was that it was marketed in such a manner that the customers did not understand the nature of the product, possibly due to the manner in which it was marketed. Nothing wrong with the product itself.

supersunbird said:
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.
Click to expand...
The problem lies in the respective risk profiles, not whether they've tracked each other in the past or how often they are updated. JIBAR is affected by preceived counterparty risk, repo is not.
 
aAAAH, nice guys, very usefull information in here...ok, remember that I told ya'll that the estate agent told us that ABSA didn't even give us a cent? Well, Friday afternoon ABSA calls and tells me congratualtions bla bla bla...they'll give me 90% as well seeing that I have 2 bounced amounts on my cheque acc.

And that's why!

This happened last year when I withdrew ALL my money once from the acc when the insurance increased their premium without informing me by about 200% to over 3k/pm....I canceled it and they said there's nothing you can do about it, its going off...so the amount bounced or whatever...I explained that to the bank and they said its cool they understand...and sommer made me a good client and gave me platinum status while they were at it! I thought they cleared all that nonsense!

I'll go speak to the private banker today to hear what she has to say about this...lol...my word!

Oh, ABSA also said...get this, this is shocking, we'll give you the 90% home loan and we've already pre-approved the remaining amount as a personaly loan!!! WOWZER! Why not include that loand into the bond ???
 
Old thread, i know but this just happened to my wife an I as well. Applied for a 1.3mill bond at the 4 major banks and got this mixed bag of responses.

1. Nedbank - 100% bond prime plus 0.4 over 25 years subject to valuation. Valuation done 2 days later, bond offer declined due to valuation being muuuuch lower than purchase price.

2. FNB (who i bank with) - 95% bond prime plus 1.7 over 20 years.

3. Std bank (who my wife banks with) - 90% bond prime plus 0.9 over 30 years.

4. ABSA - straight system decline.

Now we trying to get the seller to reduce the purchase price, but thats highly unlikely imho, but i would be a fool not to try.

We first time buyers with decent enough salaries to afford a bond of this size, with all credit being paid up (apart from my car).
Must say this has been a very disponding experience and not sure what to do to get 100% bond at the next application.
 
Can't say I can relate: I have pre-approval for a loan of R2.8m at prime - 1, at 100% cover. Haven't found a place yet though.
 
Maverick - ask Nedbank if the valuation that they did was an offline valuation. Just ask that question.

An offline valuation means that the valuation was done by an agent sitting at his desk, and it must be done within 45 minutes. Offline valuations use sales statistics for the area and the property in question to calculate the expected value of a property. But they are often inaccurate.

I had a similar situation when I applied for a 99% loan. I eventually got FNB to agree to a prime plus 0.25% loan over 20 years.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X