Home loan?

CityPress - - Business -

SCHALK WRITES:

Would it make sense to have one’s salary paid di­rectly into one’s home loan ac­count and, af­ter the monthly in­stal­ment goes off, to trans­fer the re­quired cash to other ac­counts?

TOMMY NEL, HEAD OF CREDIT AT FNB HOME LOANS, REPLIES:

Cus­tomers are not able to have their salaries paid di­rectly into a home loan ac­count.

There is, how­ever, noth­ing that stops them from trans­fer­ring their full salary into their home loan’s flexi fa­cil­ity and then trans­fer­ring it back to their trans­ac­tional ac­counts as and when they need the money to save on their in­ter­est bill.

If your salary is paid on the same date ev­ery month, an­other use­ful trick to op­ti­mise your to­tal in­ter­est bill is to sched­ule all the monthly debit or­ders for your credit agree­ments to run on your salary date. The na­tional pay­ments sys­tem pro­cesses all cred­its into ac­counts – like salaries – be­fore any deb­its and debit or­ders sched­uled for a par­tic­u­lar day.

This could help op­ti­mise bor­row­ing costs for con­sumers and also help keep their credit records in the best pos­si­ble shape.

FNB also of­fers the One Ac­count fa­cil­ity, which is an over­draft ac­count se­cured by the prop­erty. While this is pop­u­lar with some cus­tomers, our re­search shows that oth­ers pre­fer to not have one “big neg­a­tive bal­ance”. Cus­tomers need to find a so­lu­tion that works for them.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.