I am a South African who has lived overseas for many years. My foreign husband and I have recently moved back, and have purchased a house. As a foreign buyer (I am not working yet, so his income is the only one they'll take into consideration), he has to provide 50% of the bond, while the bank only takes on 50% of the risk. This, evidently, is a legal requirement, so that's unavoidable
Our complaint is that we are being totally taken for a ride with an interest rate of 10.25%! I don't know anyone paying more than 8.5% (prime). How can they justify such a high interest rate when their risk is so low?? Do they, or do they not want, to encourage people to invest in SA?
We truly feel that we are be ripped off, and the bank knows that, as recent arrivals, we have no credit history, so they reckon they can charge us anything they like. Well, we've got news for them - give us a few months to build up our credit history, and then we will be moving our money out of FNB in a flash.
If they don't want to nurture new business, we'll find a bank that does. We are feeling VERY ANGRY about this, and would like to hear if any other returning ex-pats have been treated like this.
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