YOUR BANK KNOWS EVERYTHING

MANY home loan applicants believe that it is more convenient to approach their own banks for home loans,as the institutions already have their information and documentation.

But Kay Geldenhuys, head of sales fulfilment at ooba Group, says this can often work against a buyer as their own bank could also know“too much” about them.

“For example, a bounced debit order could impact your internal credit rating with yourbank,” she says.

Many buyers also believe that their own bank will show them some degree of preferential treatment and improve their changes of approval. But this is also not necessarily the case.

“All banks are governed by the National Credit Act,and have a responsible lending policy, so they cannot show favour to their customer over others.

“Everyone is evaluated fora home loan in exactly the same way.”

It is possible that a buyer’s own bank could know too much about them to grant a them a bond. PICTURE: EXPECT BEST/PEXELS