Guiding consumers since 2009

Why FNB could reject your home loan

By Staff Writer

Ewald Kellerman, head of sales for FNB, has revealed that FNB are shutting its doors to people who want mortgages but that don’t bank with FNB.  Kellerman said this was an operational decision and that the pilot had been in place since the 22 October this year.


FNB home loan applicants had to have a transactional account with FNB whether that be a current or savings account. Kellerman explained that it was expensive for the bank to process all home loan applications from the public and that only one in 10 non-FNB customers sign up with the bank for a home loan. “Other banks are likely to offer their own clients a better rate as they understand them better,” said Kellerman.


Kellerman revealed that the cost saving that the bank will gain through rejecting non-FNB customers will end up benefiting FNB clients in a variety of ways such as improved service levels or more competitive rates. How FNB clients will ultimately benefit had not been ironed out yet he added.  “Our intention is not to disadvantage customers but to provide a more competitive rate and service level to existing FNB clients,” he said.


Justmoney’s resident home loan expert, Siraj Karstens, said that applicants are not necessarily losing out: “We try and multi-submit but with FNB you have to be a client. But generally the bank that the customer banks with will offer them a better deal anyway.”

Recent Articles

Featured Can you take out vehicle finance on an old vehicle?

As it turns out, creditors have several concerns regarding cars older than 10 years. Justmoney has a look at why creditors are sceptical of older vehicles and what you can do to get around this.

Should you have a living will in place?

When you hear the word will, the only thing that comes to mind is the document that states who is going to inherit you property when you’re dead. But have you thought about who’s going to decide what happens to you when you become incapacitated? A living will can help you do just this.

Know the difference between a loan and a credit facility

Choosing the correct product according to your needs is critical in making smart financial decisions. Credit options can be separated into two main categories – loans and credit facilities. But for some people, the lines can be quite blurred between the two.

Is property a good investment?

It’s good to consider whether property is a good investment. Justmoney spoke to numerous specialists to find out whether this is the case in South Africa.

Deals

DaVinci’s on Kloof Students Discount

Price: Available on request
When: Daily
Where: Cape Town

Ghandi's Backpackers and Guest Lodge 10% Discount

Price: Available on request
When: Daily
Where: Johannesburg

Fairway Hotel Happy Hour Special

Price: Available on request
When: Until 13 December 2019
Where: Johannesburg