For three days South Africans will be able to bid to get the best deal on their new or existing home loans in an auction initiative between Nedbank and the Bidorbuy Web site.
After Nedbank`s recent fixed-term interest rate reverse auction on Bidorbuy, both companies are now offering locals the chance to bid online for home loan interest rates.
The initiative, which begins on 26 November, invites prospective and existing clients to bid for the interest rate they are prepared to pay for their new or existing Nedbank home loan.
The rate is applicable to the first R500 000 of the registered loan. Nedbank says the interest rate applicable for any amount over R500 000 is subject to negotiation. The approval of the loan is also subject to normal credit rating criteria.
The winner will be the bidder with the highest bid, received by the close of the auction on 28 November. Nedbank says it will hold the interest rate for up to 60 days in order to give the client time to find their new home, or make arrangements for their existing loan to be transferred to Nedbank.
The bank last partnered with Bidorbuy to offer investors the opportunity to bid for interest rates on fixed-term deposits in the form of a reverse auction.
Gayle Rodrigues, Nedcor media relations, says the decision to try out the home loan auction was taken after the success the bank had with the interest rate auction. She adds that, depending on the success of the home loan auction, Nedbank will consider offering other of its banking products via the same channel.
South Africans have been able to place their applications for home loans on local Web site www.bondnet.co.za where five local banks can bid for the right to issue the loan. Nedbank, however, is going for the more direct route.
"Not only does this exciting initiative provide an opportunity for a low interest rate but also provides the client with ample choice to tailor the home loan to ideally suit his or her circumstances. South Africans are using the Internet more and more. We believe home buyers also want this convenience and accessibility, and will embrace the interest rate auction," says Jack Trevena, GM of Nedcor Bank Homefinance and Services.
Bidders can register for the auction at www.bidorbuy.co.za from today.
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