I applied for a readvance on my homeloan (access funds that are registered but not used). It was declined on the basis that the loan requested exceeds 90% of the value of my property. When we bought the property last year, they allowed 95% loan. Although they approved us on the credit side, it was declined because of this 90% rule. This rule only applies to readvances, but not to new loans. This means that we now qualify as an existing client of the bank, for not even the balance on the loan. They cite policy for this, but given that the property has increased in value according to their own valuator, by R40 000, we'll have zero access to none of that equity for the foreseeable future.
As I explained to them, the property is in an "A" rated area with good demand, they can see it's grown well in value since we bought it, yet they refuse to consider any logic. They would probably have given us our requested amount if we were buying a new place, but as an existing customer, we're penalised.
I will definitely be seeking to switch as soon as the opportunity is presented. They have always been so good, so this is a let down..
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