This question has popped up quite a bit, so here's to hoping it will help a few forumites.
1. Getting a quote from a different bank:
You will have to apply at the other banks for quotes. Some will be willing to give you the loan, others will refuse. Depends on your luck and financial standing. You can also try to negotiate with them. They call it a motivation.
Personal experience: I has an interest rate of 8.25% at my old bank. Rival banks offered 8.10%. I declined until eventually they offered 7.95%.
2. Accepting the quote and the paperwork:
This is the cumbersome part. You will need to send in your personal documents (ID, bank statements, proof of marriage etc) once again, and will have to meet will the lawyers to have new bond documents created and signed. Keep in mind, it also takes 3 months to cancel your current bond if you want to avoid penalties. So I suggest you do this personally.
Personal experience: My bond is registered in both my and the SO's name. Therefore we both had to present in front of the attorney and sign the documents. The only work Monday to Friday and will not meet after hours. SO it's a huge pain if both of you are working. Once all the paperwork is completed, the attorneys do the rest until your account is opened. Contact the bank for the account details.
3. The Cost:
In a normal case, you will be liable to the costs of the bond attorney and the cancellation costs of the old bond to be paid to the attorney as well. If you are lucky the bank will cover some of these costs. You will have to negotiate. Also, you have to pay a bond initation fee, non negotiable. basically:
*Roughly R9 000 for bond attorney fees
*Roughly R3 000 for the attorney to cancel the old bond
*R5700 bond initiation fee
Personal Experience: I did not have to pay for any of the bond attorney costs. I only paid for the attorney to cancel my bond with the previous bank. I also paid the bond initiation fee.
Tips:
1.Negotiate for the best rate possible. You have nothing to lose.
2. Request an attorney on the banks panel that you know. They will assign him to you. Do this as soon as you accept the quote.
3. If you do not know any attorneys, request an attorney that will physically come to you to get documents signed.
4. Get the bank to pay the bond attorney costs. If they agree, you will still have to pay the cancellation costs.
5. Take out a flexi bond so you can deposit and withdraw money and save on interest.
Remember it will cost around R15 000 - R17 000 to move your bond. But if you get a decent interest rate, you will definely make that money back in interest savings.
1. Getting a quote from a different bank:
You will have to apply at the other banks for quotes. Some will be willing to give you the loan, others will refuse. Depends on your luck and financial standing. You can also try to negotiate with them. They call it a motivation.
Personal experience: I has an interest rate of 8.25% at my old bank. Rival banks offered 8.10%. I declined until eventually they offered 7.95%.
2. Accepting the quote and the paperwork:
This is the cumbersome part. You will need to send in your personal documents (ID, bank statements, proof of marriage etc) once again, and will have to meet will the lawyers to have new bond documents created and signed. Keep in mind, it also takes 3 months to cancel your current bond if you want to avoid penalties. So I suggest you do this personally.
Personal experience: My bond is registered in both my and the SO's name. Therefore we both had to present in front of the attorney and sign the documents. The only work Monday to Friday and will not meet after hours. SO it's a huge pain if both of you are working. Once all the paperwork is completed, the attorneys do the rest until your account is opened. Contact the bank for the account details.
3. The Cost:
In a normal case, you will be liable to the costs of the bond attorney and the cancellation costs of the old bond to be paid to the attorney as well. If you are lucky the bank will cover some of these costs. You will have to negotiate. Also, you have to pay a bond initation fee, non negotiable. basically:
*Roughly R9 000 for bond attorney fees
*Roughly R3 000 for the attorney to cancel the old bond
*R5700 bond initiation fee
Personal Experience: I did not have to pay for any of the bond attorney costs. I only paid for the attorney to cancel my bond with the previous bank. I also paid the bond initiation fee.
Tips:
1.Negotiate for the best rate possible. You have nothing to lose.
2. Request an attorney on the banks panel that you know. They will assign him to you. Do this as soon as you accept the quote.
3. If you do not know any attorneys, request an attorney that will physically come to you to get documents signed.
4. Get the bank to pay the bond attorney costs. If they agree, you will still have to pay the cancellation costs.
5. Take out a flexi bond so you can deposit and withdraw money and save on interest.
Remember it will cost around R15 000 - R17 000 to move your bond. But if you get a decent interest rate, you will definely make that money back in interest savings.
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