FNB Home Loans Waste to Switch

FNB Contacted me to make a Bond switch in October 2025 after 5 Months of wasting my time and effort they made a very uncompetitive offer and when trying to negotiate with the they bluntly SAY”NO” and end the conversation

On the numbers FNB laid out, the offer does not make financial sense,

Let’s strip the emotion out and look at the offer for what it truly is. ________________________________________ 1. What FNB is actually offering (in real terms) • Rate improvement: 0.42% lower than Standard Bank • Monthly saving: ± R190 per month • Saving over 120 months (10 years): ± R22,800 – R26,000 (depending on amortisation assumptions) • Once-off costs to switch: o Initiation fee: R6,037 o Cancellation fee (Standard Bank): ± R7,500 o Total upfront cost: ± R13,537 ________________________________________ 2. Break-even analysis (this is the key point) • R13,537 ÷ R190 ≈ 71 months • That’s almost 6 years just to break even. • Only after year 6 do you see any net benefit. That alone already makes this a weak offer, especially in a volatile rate environment where: ________________________________________ 3. Opportunity cost If you: • Invest R13,537 instead of paying fees • Earn a conservative 8–10% p.a. over 10 years You’re very plausibly in the R35,000–R45,000 range. So the true cost of switching is not just R13,537 — it’s the lost future value of that capital.

From a finance perspective, that makes the switch value-destructive, not value-creating.