OK people it's time for me to freak the @#$% out again!!!
I've been trying to figure out why we can work out affordability ANYMORE. By we, I mean bond originators in South Africa. I put these applications together work everything out according to plan, submit the application and we get declined on affordability (WHEN ON OUR SIDE, affordability is so evident you could by 3 places on the same salary).
BUT WAIT, what the banks are now doing is scoring you according to what rate they would give you. Rates at the moment, PRIME and PRIME PLUS!
So the point of this blog post is twofold:
1. For those of you applying for home loans ensure that you factor in at least a PRIME +1% into your affordability to ensure the accuracy of your affordability and to ensure your SANITY :)
2. Banks - Nedbank especially, please can you advise bond originators and the public when you decide to change scoring policies so that we all know what to do when applying for a bond.
We're not here to trick the banks we're here to work together with you!