Featured question: First time home buyers
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 This is what you need to know about home loans
In order to afford a home in South Africa, many people take out home loans. But what exactly is a home loan, and how should you go about getting one?
How is debt consolidation different from debt counselling?
If you’re struggling to manage your debt and you decide to seek help, you will likely come across the terms “debt counselling” and “debt consolidation”. Although they sound like synonyms, these are two separate debt solutions.
What factors colour your credit application?
When you apply for a loan, your prospective creditor will assess whether you can afford the monthly repayments. But what do creditors actually consider on your credit report, and what most interests them?
Is good debt a good reason to take out a personal loan?
When you’re in a pinch and you need to borrow money, you may reach out to a creditor for a personal loan. The upside of this kind of loan is that you can spend the money on anything you choose. However, just because you can use it for anything, does not mean you should.
Deals
Join the Sun Vacation Club and save up to 25%
Price: Available on request
When: Until 15 March 2021
Where: Nationwide
Bakwena Day Spa Human Rights Day Special
Price: From R699
When: From 20 to 22 March 2021
Where: Erasmia
Orion Hotels and Resorts Cocktail Dinner Special
Price: From
When: Until 31 March 2021
Where: Nationwide