Guiding consumers since 2009

Featured question: First time home buyers

By Staff Writer
Question:

Hi. My wife and I are first time home buyers. We got a loan with a bank that we don't bank with. My question is do I need to change my bank? What would be your advice?

Answer:

Our home loan expert answers our readers question:

Hi Desmond,

It depends on what your financial needs are.

The exposure you have to one particular bank will allow you to develop a relationship with this bank, and give you greater access to their product offerings in the future.

Additionally, the ease of transferring funds, especially additional payments to the bond are both quicker and cheaper if your transactional bank accounts is with the same institution as your bond.

Should you decide to apply for an access bond in the future, you will need to have an account linked to your home loan anyways.

However, this choice is also down to personal preference.
The service you receive from your existing bank may be better than that you may receive from a different institutions and the costs may also differ.

So an understanding of what your banking requirements are and what the costs are also important.

Each bank also offers value added products, for e.g., smart devices, access to certain facilities (e.g. airport lounges etc.), rewards programmes with participating retailers etc.,  for choosing particular accounts, so this also needs to be taken into consideration.

Unfortunately, there is no easy answer.

But, should you at any stage want to move your accounts (including your bond) to a different institution, for any reason, you are always able to do so provided you have good financial standing.

Recent Articles

Featured Aligning your financial goals in a relationship

When two people enter into a partnership through dating, marriage, co-habiting, etc, usually theres an enormous amount of effort spent on finding commonalities. However, this process often neglects the financial status and long term goals of each member.

How will your personal information be protected by your insurers?

POPI forces industries to reconsider how they handle client’s personal details. This is particularly good news for sensitive products, such as insurance.  We find out what POPI is all about, and we see how your information will be protected.

How long does it take to change your credit life cover provider?

You have the right to choose your own credit life cover provider. But how long will it take to do this, and is it worth the effort?

Is it risky to pick out your own stocks, or could you stand to gain more?

Investing in the stock market can seem like an intimidating idea. It may seem safer to allow a specialist to manage your investment portfolio than to gamble with your own limited knowledge.

Deals

Bakwena Day Spa Black Friday Vouchers

Price: From R549
When: Until 27 November 2020
Where: Broederstroom, Centurion, Kuils River

One & Only Hotel Complimentary Nights

Price: Available on request
When: Until 17 December 2020
Where: Cape Town

Spur’s Unreal Breakfast Special

Price: R39.90
When: Daily
Where: Nationwide


Latest Guide

Guide to debt rehabilitation solutions