Bond originators are a fairly new enterprise in the general bond market, and there is thus not much knowledge available regarding what they do or in fact what they are.

And so, to answer this burning question:

A bond originator, or home loan originator, is specialised in offering a service to all home loan applicants who need assistance with their home loan applications. This is a 100% free service made possible through their contacts at all the major banks in South Africa.

To refine this definition, a bond originator is in the business of making the process of taking out a mortgage like a walk in the park.

Mortgage Plus is currently one of the most popular-used of all bond originators in South Africa. They are home loan specialists and pride themselves in the provision of top-notch service to all their clients looking for expert advice regarding taking out the most suitably reasonable mortgage.

The Cost-Effective Solution to Getting Expert Mortgage Advice

With Mortgage Plus you are assured of getting the best advice possible in the concern of getting the mortgage that will be most ideal for you. Not only this, but Mortgage Plus prides itself on being the most cost-effective solution to getting expert mortgage advice; and they are fully-capable of matching this. This is because it costs nothing to use Mortgage Plus as your bond originator. No costs are incurred whatsoever as Mortgage Plus bond originators receive a fee from the Banks Home Loan Department.

Mortgage Plus will assist you in navigating through the complex world of home finance, and will furthermore do the legwork to provide you with an objective overview of all mortgage options available.

Having ever-strengthening relationships with all the major banks in South Africa, Mortgage Plus  is able to give their clients the widest range of choice along with the best rates. What is further beneficial to the individual in making use of a bond originator such as Mortgage Plus  is that bond originators submit thousands of home loan applications annually, and for this reason they have the power to negotiate a better rate for you than you would have as an individual.

Quick and Hassle Free Online Mortgage Service

Using Mortgage Plus  as your bond originator is the most hassle free way of applying for a mortgage as they have the necessary skills and experience to help each and every one of their clients get the lowest home loan rate possible.

Whether you need a new home loan, a home loan extension, or are wishing to switch your home loan, Mortgage Plus  can help you. This bond originator even has made a free online service available to make this happen quickly and efficiently.

To apply online at www.mortgagepluscc.co.za or call them on 011.327.4489

An interesting fact is that 80% of all bonds in South Africa are processed by bond originators. Does this not tell you something? Get in contact with Mortgage Plus today and discover for yourself the reason why more and more people are tuning to bond originators for assistance with their mortgage.

What is it that you are waiting for?  Mortgage Plus  knows the business of home loans.

When looking for a new home loan or wishing to transform your existing one, there is no better place to turn to than Mortgage Plus. As specialists in the home loan industry in South Africa, Mortgage Plus will give you the best assistance and expert home loan advice to ensure that you in turn make the right decision regarding a home loan that is best suitable to your personal finances and needs; and you will therefore benefit greatly from utilising the outstanding services which Mortgage Plus has to offer in terms of guiding you through the entire application process.

The finance industry is complex and often very intimidating to those who have little or no experience and as such Mortgage Plus was started to assist in the transformation of existing home loans by giving aid in getting bond extensions and credit extensions; the reason for the rampant growth of this company’s popularity among existing home owners in South Africa who desperately require Mortgage Plus expert advice and assistance.

On Capital Gains Tax

Capital Gains Tax was introduced on 1 October 2001, needing to be paid by all South African residents and non South African residents who make a profit or loss when selling fixed property of a capital nature located in South Africa.

What Capital Gains Tax means fro home owners is that taxpayers, including individuals, trusts, companies and close corporations, will be taxed on the profit they make when they sell an asset or property of a capital nature. So basically, Capital Gains Tax is a tax on the resale of assets.

In most cases, provided that the property is smaller than two hectares and the profit is less than R1.5 million, Capital Gains Tax will not affect your primary residence. On the other hand however, homeowners will be liable for Capital Gains Tax on second properties or holiday homes that are not occupied as a primary residence or on any portion of a primary residence that is used for business purposes. Furthermore, Capital Gains Tax does affect all properties registered in the name of a close corporation, trust and company.

Mortgage Plus: Expert Home Loan Assistance

Mortgage Plus knows this information and, by utilising their home loan assistance, you can ensure for yourself that everything that needs to be is taken care of with regard to all costs being paid, etc. To elaborate, with Mortgage Plus on your side you will experience no glitches, and the process of applying for a new home loan or transforming your existing home loan by getting a bond extension or credit extension will run smoothly.

So if you are looking to get a credit extension on your home loan or wanting to apply for a new home loan, there is no better place to turn to get the expert advice and quality assistance you will need to ensure that everything is taken care and that the best possible decision is made in terms of the perfect home loan for you as an individual.

Mortgage Plus is here to help you. Get in touch with us now and experience the pleasure that it is of having an expert on your side every step of the way. www.mortgagepluscc.co.za / 011.327.4489

Economic growth is picking up, interest rates are low and home prices are still reasonable, so many people have decided this is the best time for them to get into the property market by buying their first home.

However, says Berry Everitt, CEO of the Chas Everitt International property group, after they select an area they would like to live in and start looking at individual properties, first-time buyers often find themselves “freezing up” at the prospect of the huge commitment they are about to make.

What if they pick a property that turns out to need expensive repairs? What if the new neighbours turn out to be ghastly? What if something better comes up just after they’ve signed a sale agreement?

“Well, the first thing they need to remember is that there is no such thing as a ‘perfect’ property – for one thing, almost everyone’s home is something of a compromise between what they dream of and what they can afford.

“But having said that, every buyer also has certain non-negotiables – needs, rather than wants – and you should take the time to think about these and make a written checklist so that you can easily establish which of the homes you view has the most boxes ticked for the best price.”

Everitt says this strategy will prevent buyers from becoming distracted by nice-to-have but unnecessary features, or from being unduly influenced by “bargain” pricing, and will help them to resist any high-pressure selling of unsuitable properties.

“And most importantly, it will give you peace of mind, knowing that you have picked a home that is right for you and is thus your plum property, whatever else may come on to the market later.”

“Owning a home is like any other major commitment – you need to be mentally and financially ready for it,” says Adrian Goslett, CEO of RE/MAX Southern Africa.

Goslett explains that the high costs involved in buying your own home mean that you will need to be prepared to stay put for around three to five years.

“Except in a roaring real estate market, it usually doesn’t make sense to buy a home you will own for less than three to five years. The high transaction costs involved in buying and selling property means that you could end up losing money on the deal if you sell before your property has had time to rise in value and you have had time to pay off a bit of the loan and absorb some of the transaction costs.”

Of course, a key consideration that needs to be carefully evaluated before buying a home is whether you can afford to make the necessary financial commitment. “To make an accurate assessment, it is highly advisable to visit or call one of the many bond originators like Mortgage Plus or banks. They will help you assess whether you can afford to buy a home or not. It is critical that you be completely transparent about your monthly expenses, so that they can assist you in making a truly informed decision.

“Once your mortgage originator or bank has assessed your financial position, they will be able to tell you what you need to earn to qualify for the bond amount you require, or they will let you know how much you qualify for based on your income and expenses.”

Goslett notes that first-time buyers must keep in mind that in the majority of cases, they will also need to save a deposit of up to 20% of the purchase price of the house, plus enough money to cover the transfer and electricity connection costs as banks seldom, if ever, approve 100% home loans these days. In addition, Goslett advises that homeowners should ensure that should the interest rate increase, as is predicted for early in 2011, they are still able to afford the increased monthly bond repayments.

He explains that your credit rating is an essential component for bond approvals. “Many young people don’t realise the importance of keeping your financial records and credit ratings in order. If you have lots of late payments, have declared bankruptcy or left old debts unpaid, it will be much harder for you to be approved for a home loan. And even if you do get a home loan, your bad credit rating will mean you will more than likely have to pay a much higher interest rate.” – Eugene Brink

To apply for your home loan please go to www.mortgagepluscc.co.za or call us on 011.327.4489

Looking through the 2010 soccer euphoria gripping South Africa, financial trouble is looming on the horizon for many households.

If you are buying a home now, consider opting for a smaller or cheaper property and keep some slack in your monthly budget to cope with home loan and household costs – which are set to rise, some maybe even dramatically. If you’re staying put, revise your spending habits and start thinking of ways to prune your bills. You’ll be paying a lot more for the basics in future, is the forecast from some economic experts.

FNB’s top-notch property economist John Loos politely terms these financial storm clouds gathering on the horizon as the “new housing affordability challenge”.

The announcement of a 25% electricity hike for next year, and more, steep price increases to follow, is a blow to consumers because it will push up the costs of all the goods and services you buy much more than you might have expected.

Eskom’s electricity bill shocker is not the only problem. In a report, Loos says Eskom has been a “key driver” of housing-related inflation which, at 7% is above the upper CPI (Consumer Price Inflation) target limit of 6%. Far behind, “but still troublesomely high, is the sub-index for ‘water and other’ services, which also includes municipal assessment rates, showing year-on-year inflation of 9.4%”.

Helping many consumers, meanwhile, have been residential property investors who have kept a lid on rent increases. Says Loos: “Keeping the overall housing and utilities index from skyrocketing out of control was a very weak rental market, as tenants feel the stress from the recent recession as much as home-owners.” The rental sub-index, as a result, “inflated by a mere 4.9%.” (For more on this, click here to read Punished!SA property investors)

The good times are unlikely to continue for tenants. Rent is expected to increase by more in future, is the message from Loos.

All these rising costs mean that inflation will become harder to keep within the SA Reserve Bank’s 3-6% target – and that in turn suggests new SA Reserve Bank governor Gill Marcus will find it increasingly difficult not to increase the repo rate, which leads commercial bank interest rate increases. In other words: interest rates are likely to rise in the not-too-distant future.

Also not helpful to the bank balances of the astonishingly low number of taxpayers who contribute the most to government coffers was new finance minister Pravin Gordhan’s stingy budget, which he presented to Parliament last month. Tweaks to the personal income tax tables are unlikely to compensate for the ravaging effect of inflation on purchasing power, and the few remaining tax perks – like car and insurance allowances – were reined in even further. Salaried taxpayers are getting less and less for their tax money, which means they must pay so more of their disposable income for expenses like private healthcare, security and decent education for their children.

If you are tired of your landlord or would rather pay off your own property asset than someone else’s, now may be a good time to buy a home because you are likely to find it easier to get money from a bank now. Interest rates are unlikely to fall much, if at all from here, and when interest rates go up, banks put less money into mortgages. Of course, the flipside is your home will cost more before rents catch up with what you are likely to repay on your loan each month. In time, though, you will find that you are paying less for your property debt than you would have been paying as a tenant.

Loos encourages home buyers to ask the question: “‘What if interest rates were to rise by the usual 4-5 percentage points? Could I still afford the bond repayment?’ If the answer is “no”, says Loos, perhaps look to buy a cheaper home. (Click here to calculate your repayments).

He cautions, too, that your interest bill is just one of many costs to take into consideration. Whether you are considering buying a property or aiming to generally improve your financial wellbeing, don’t ignore all the other costs that go into running a home. Says Loos: “The affordability issue now clearly extends far beyond merely the cost of servicing a bond, to the issue of these sharply escalating costs related to housing. Assessment rates and utilities tariffs to homes are largely unavoidable, and with all these entities being monopolies, and their charges being compulsory, the consumer has limited alternative. Besides electricity and water saving measures, the only alternative is to buy a smaller home (to reduce operating costs) or cheaper house (to reduce assessment rates).

“Prospective home buyers would do well to do the scenario planning in the area of rates and tariffs too, therefore, planning their purchase on the assumption that the current rates and tariffs paid on the targeted property will probably rise dramatically in the next few years,” he urges.

Budgeting tips

• Itemise all your monthly essential bills, items you “need”, that are fixed costs – like rent, transport to work, school fees, childcare fees.

• Itemise all your essential bills that fluctuate, like food and electricity.

• List all the bills you pay that you regard as important, but not essential, like extra activities and cellphone airtime for your children.

• Compare your income to your expenditure. The difference is the amount by which you must reduce your spending.

• Cut or drastically reduce the non-essentials first.

• Decide on budgets for essentials, like food, and do not spend more than you can afford in the supermarket.

• Pay off your credit card debt; avoid your budget facility.

• Don’t be a snob. Many people can’t manage within their means because they like to show off to their neighbours.

• If you still can’t match what you earn with what you owe, seriously consider moving to a smaller, cheaper home.

For more info on Debt Consolidation Home Loans go to www.mortgagepluscc.co.za

Turning your property investment into a huge success does not require much risk taking, or even much capital. By following the basic principles of property investments you can easily avoid the common mistakes, and quickly build up your portfolio.

Here are 3 ways to increase your property investment return

1# Renovate a rundown property
2# Buy a repo property
3# Choose the right locations

Renovating a rundown property is a hugely popular choice among many investors.
This option draws on every key aspect required to be a smart and successful property investor. The first step in this process is to find a cheap property that has potential to attract a high rental or reselling price.
To do this successfully you will need to do some very detailed research, and often you may need to know more about a property than the owners do. Recent sale prices, trends, future projections or planned community upgrades – these are just some of the things you would need to research.
Following that you would look to add value to the property. Aim to add an extra R3-R5 of value for every R1 you spend on the renovation.
and finally, work quickly to get the job done and work within a detailed budget.

Buying a repossessed property:
If you are not confident about you renovation skills, you should consider searching through the repossession lists.
Repo properties are often sold and a huge discount as the banks are keen to off load these properties and recover some of the outstanding debt.
South African Banks are even willing to sweeten the deal on these sales by offering full 100% bonds and discounts on the attorney costs.
Its not too difficult to pick a cheap repo property, that is able to attract a decent rental income.

Choose the right locations:
Everyone will tell you that property is all about location. I would agree, but the best locations may not be in the most popular areas, rather the best locations are in the areas that you are most familiar with. Stick to what you know. The more information you have about an area (or property) the likely you are the make a sound and profitable decision.

For more info on Futher Loans, Building Loans or New Home Loans go to www.mortgagepluscc.co.za

011.327.4489

A Pension-supported Housing Loan is the answer!

Had enough of renting and longing for a place of your own but wondering how to afford it? Love to extend your
home to become something better – but worried you won’t qualify for a home loan or bond? Then a Pension-supported Housing Loan is designed specially for you!

What is it?

A Pension-supported Housing Loan is simply an alternative way to fund any aspect of a home – from the purchasing of property to renovations. It means that the pension or provident fund to which you belong and
contribute each month, is used as security or collateral for the money you borrow for your home. The amount borrowed is guaranteed against the fund – it does not come out of it. Money is deducted from your salary or wages each month to repay the loan. The loan has to be repaid in full before normal retirement age or should you leave the fund – so your retirement savings remain intact.

How can i apply?

Your regional Pension-supported sales force will assist you with the application process or any queries you may have:

011 327 4489
info@mortgagepluscc.co.za
www.mortgagepluscc.co.za

Absa Affordable Housing

To  Apply for your Affordable Housing Loan – Click Here

Smart Bond is a housing finance solution for applicants earning a monthly household income of R15 000 and below. With Smart Bond, approved customers are able to enjoy 100% bond finance, i.e. there is no deposit required.

More about: Smart Bond Overview

Why do I need this?

What can I do with this?

What will it cost?

Do I qualify?

To qualify for Smart Bond, the following is required:

• You need to be a South African citizen, formally or self-employed
• Your salary/income must be paid into a bank account
• You must not have had judgments and/or defaults of more than R1 000 against you in the last 12 months
• The property you intend to buy must be acceptable for lending purposes
• Your bond instalments must be paid via a debit order or payroll deduction facility

You should still be able to afford your bond instalments, including the following:

• Current expenses and other monthly debt instalments
• The new expenses relating to the new home you are buying

You can get this at:

• MORTGAGE PLUS cc
• www.mortgagepluscc.co.za
• 011.327.4489
• info@mortgagepluscc.co.za

What do I need to do?

Complete Smart Bond application form and hand it to the consultant / fax it to 086 560 1224 together with the following documentation:

• A copy of your valid Identity Document*
• Your latest salary advice/pay slip*
• 12 months’ bank statement if you are self-employed and not banking with FNB
• Details of the property you are buying

*For you and your co-applicant where applicable.

Legal:

Once your bond has been approved, you will be required to sign a loan agreement that stipulates the conditions, requirements and responsibilities pertaining to you and the bank.

If you want to buy property, don’t dally. The present favourable buyers’ market is not going to remain favourable forever. In fact, if the property, home loan  and banking industry experts are correct, the tipping point will be reached soon and when it does, the upswing could be breathtakingly quick.

Projections done by Absa Home Loans indicate that the price of residential property could increase by as much as 60% between the end of 2010 and 2014. This means that a 220m² R950 000 141m² house is likely to cost around R1.5 million in six years time.

But, there is a conundrum to solve. Although the current adverse property market conditions may have served to make your dream home less expensive, the prevailing economic conditions have made the home loan with which to fund your dream, more difficult to secure.

Fortunately, more difficult does not mean impossible. Here are five home loan tips that could prove to be of value if you decide to strike while the iron is hot.

Become credit fit: The National Credit Act made it possible for all consumers to request a free copy of their credit report from the credit bureaus each and every year. Your credit report is accorded a significant weighting during the evaluation of your home loan application: it is one of the main factors that influences whether you qualify for credit or not; it affects the amount you qualify for; and it determines the interest rate you stand to pay.

For this reason, you may want to see your credit report before the bank does. Go through every last detail with a fine tooth comb. Check whether there are items that adversely affect your rating, and be on the lookout for incorrect records. If there is anything untoward that should be amended, write to the credit bureau explaining why the changes need to be made. Remember to submit supporting documentation if you have any.

If the credit bureau in question doesn’t respond or unreasonably declines your request, you can approach the credit ombudsman for mediation. This may seem like quite a tedious undertaking, but it certainly is well worth the effort in the end.

Increase your disposable income: The criteria for whether or not you can afford a home loan have changed. The banks now consider your disposable income when they calculate the size of home loan you qualify for.

Your disposable income, which is the amount of money you have left after meeting your financial obligations every month, can be increased if you give it some thought. You could speed up the repayment of your personal loans, settle some of your other small debts, shop around to save on your insurance payments and buy a cheaper car.

For every R1 300 you save on your monthly financial obligations, you will increase your home loan spending power by a full R100 000.

Work with a mortgage originator: Securing the services of a mortgage originator is a much better idea than taking a DIY approach. The mortgage originator will look at your personal set of circumstances and be able to tell you whether you are likely to qualify for a home loan and, if you do, how much you could probably buy for.

Working with a mortgage originator improves your chances for success: They understand the idiosyncrasies of the various banks, know which paperwork to submit and how to motivate your application. Once you are approved, they will negotiate the best possible interest rates and help you through the process until your home loan is finally registered. The banks, and not you, pay for the services rendered by mortgage originators.

Obtain a pre-approval certificate: If you want to avoid disappointment, you can ask your mortgage originator to apply for a pre-approval certificate from one or more of the banks. The pre-approval certificate is an in-principle decision made by the bank to finance your purchase, and is usually subject to their valuation of the property you decide to buy.

Don’t bite off more than you can chew: Your home loan is not the only additional monthly expense you will face when buying a home. You will also have to pay rates and taxes, homeowners’ insurance and, if your existing life cover is insufficient, additional life insurance premiums. Be sure to budget for these.

You would do well to leave some headroom for further interest rate increases. You need to be able to cope with at least a further 2%, just to be on the safe side. If you want to have the peace of mind knowing what your home loan will cost for the next 18 to 24 months, consider a fixed interest rate rather than a variable one.

And remember, the journey does not end once you crack the nod from a bank. It continues and, considering that it could last for 20 years or more, becoming knowledgeable about home loans is not a bad idea.

Make a point of reading up on how you could save on the interest you pay and how you could reduce the repayment term. Also gain a clear understanding of how you should use your home loan for big ticket purchases and as a debt consolidation instrument.

Finally, remember that the mortgage industry is constantly changing, and that it is a very good practice to shop around from time to time to ensure that you are still enjoying the best possible home loan deal from your current bank. For more info go to www.mortgagepluscc.co.za or call us on 011.327.4489

The residential property market is expected to gradually improve in 2010, says ABSA. This was due to better economic conditions, the lagged effect of lower interest rates and less tight credit conditions, Absa analyst Jacques du Toit said in a statement.

According to Absa’s latest house price indices, residential property prices declined marginally in nominal terms in 2009 compared with 2008.

“Prices declined in the first half of 2009, but started to rise on a month-on-month basis since May.”

Taking account of the effect of inflation, Du Toit said house prices continued to decline in real terms up to November last year, although at a much slower pace than earlier in the year.

“This was the net result of rising prices in nominal terms in the second half of the year, while inflation tapered off to lower levels during this period.”

Residential property transaction volumes increased further in the final quarter of 2009 after bottoming in the second quarter of the year.

The higher level of activity, as well as rising nominal prices towards the end of last year, came on the back of declining interest rates and the selective relaxation of lending criteria by banks, Du Toit said.

Middle-segment house prices were marginally down by a nominal 0.2 percent in 2009 (+4.1 percent in 2008), after increasing by 5.6 percent year-on-year to R1.01-million in December.

In real terms, middle-segment house prices were down by 1.1 percent year-on-year in November and down 7.4 percent year-on-year in the first 11 months of the year.

Du Toit said South Africa appeared to be out of recession after real annualised gross domestic product (GDP) growth of 0.9 percent was recorded in the third quarter of 2009, with growth estimated to have been around 1.5 percent in the fourth quarter.

“The economy is expected to improve further during the course of 2010 and record real GDP growth of about 2.5 percent this year.

“With inflation forecast to be under upward pressure in the near term, interest rates are expected to remain unchanged for most of the year before being hiked late this year in an attempt to keep inflation under control.”

Du Toit said the household sector was still experiencing some financial strain.

The ratio of household debt to disposable income remained relatively high at almost 80 percent, while real disposable income dropped further in the third quarter of last year in the wake of major job losses during the course of the year.

Real disposable income growth was expected to turn positive again towards mid-year while the debt ratio was forecast to remain relatively stable at just below 79 percent.

While the residential property market was expected to improve this year, the positive effect of the lower interest rates was set to diminish towards the end of 2010, Du Toit said.

House prices were forecast to rise by between six and seven percent in nominal terms in 2010, while in real terms, a marginal increase might be possible on the back of current projections for nominal house price growth and consumer price inflation.

www.mortgagepluscc.co.za

011.327.4489 – Mortgage Plus cc