If you are looking for a home loan, the banks are not always your only option – but remember that this is always a matter of personal choice. Imagine if South Africans only had four or five companies that they could approach to buy a motor car which were all equally poorly manufactured, thus creating a gap in the manufacturing market for a bank to set up a cheaper and better factory where vehicles were made according to the specifications of the expert automotive company?Mmm! this does sound far-fetched and rather outlandish, but this is exactly what has happened in the banking world.
The reverse situation has been created. The home loans service from the four major banks, that being Standard, Absa, FNB and Nedbank have created a niche in the market where BMW have stepped in to fill this gap. BMW Finance is the financial services arm of the luxurious German car manufacturer and is presently presenting home loans with excellent service combined with lower costs.
After being in the vehicle financing game for decades, BMW Finance has put together a package that is cheaper than the big four lenders in SA. In order to apply for a BMW Financial loan, simply complete an application form which you could easily print off the BMW Finance website and return it to the company with all the relevant documents required,; alternatively approach the call centre directly.
Your bond will be granted should you pass all the standard credit checks; nice thing is you should be given a reply within about a week – this is also subject to the value of your property, which is usually assessed according to the purchase price of like properties in the area that you are buying into.
Of special interest is that FNB was the only banking institution that compared favorably with BMW Finance rates – but the bank’s initiation fees were higher than those of BMW Finance. So used for:
- Purchasing a new or existing property.
- Switching current home loan facility from another institution.
Registration costs and valuation fees will be covered by BMW SF.
- Switching current home loan facility from another institution and at the same time registering a higher loan amount.
- Building a new property.
- Purchasing a property off-plan from a developer.
- Additions and improvements to current property.
Fees are usually more favorably if you already bank with the institution in question – this is across the board – obviously attracting new business is not of paramount importance!
When looking for a home loan, it is a good idea to shop around to find the one best suited to your individual needs and budget, though.
0861 BMW FIN (269 346)