Call Mortgage Plus Bond Originators before buying a home

MP FB BANNER

 

You’ve decided it’s time to find your dream home. A big decision and a large financial commitment, so you want to do it right, getting the best advice and the best finance you’re likely to get. That’s why you should call Mortgage Plus Bond Originators before you’ve even begun – and we’ll do the rest.

1. We’ll get you pre-approval

Before you begin house hunting we can get you pre-qualified, so you’ll know what you can afford and where to look. With our pre-qualification, you’ll not only have confidence in making an offer on your dream home, but the seller will also have confidence in accepting your offer.

2. We are the home loan experts

Our home loan specialists are at your service from your first call to us until the moment you step into your dream home. We can even help you further, protecting your dream come true with Home Owner’s Cover or Buildings insurance. Having walked over 1Million of our satisfied customers through this process before, we know what we need to do to save both your time and your money. Simply search Hello Peter to see how many great reviews we’ve received already.

3. We do all the work and increase your chances of approval

Once you’ve found your dream home, we’ll help you through the entire process, taking the bulk of the administrative burden off your shoulders. You only need to apply once and we take it from there, applying to all major South African banks, and more, on your behalf – including your own. This improves your chances of approval and minimizes your paperwork. It’s how we’ve ensured that 3 out of 4 Mortgage Plus Bond Originators customers secure their finance successfully.

4. We get you the best deal

Multiple applications will often mean multiple approvals, and banks – much like people – are all quite different. While one may require a larger deposit, another may offer a higher interest rate. With our expert guidance you’ll be able to compare your offers side-by-side conveniently, so you can get the very best deal you’re likely to get. And, once your deal is made, we can provide you with mortgage protection, securing your repayments against the unknown future.

5. Our service won’t cost you a cent

You contact us once and we do everything we can to get you into your dream home, enjoying your better life – at absolutely no cost to you, not even hidden in your home loan fees.

6. We uplift those in need

Our commitment to making a difference in South Africa through making dreams come true doesn’t start and stop with our customers. As a business, we’re so passionate about upliftment that it informs the way we do business. With every transaction we set aside a portion for the greater good. So in a way, your successful approval doesn’t just make a big difference in your life but it will have a huge impact on the lives of others as well.

So, with all that in mind, there really is no good reason to apply for your home loan alone. With us, “on your own” is something you will never be. Contact Mortgage Plus Bond Originators today, and we’ll do the rest.


Mortgage Plus Bond Originators

Tel: 063 047 0102 | Email:  info@mortgagepluscc.co.za | Fax: 086 560 1224
Our working hours are 08:00 to 17:00 Monday – Friday.
We are closed on weekends and public holidays.

Is fixing the interest rate on your home loan a good idea?

There is now much greater pressure on the SA Reserve Bank to increase interest rates, with the longest period of decline in the rand in history bringing the question of fixing interest rates on home loans into sharp focus.

When a purchaser applies for a home loan, they should always shop around, preferably through an experienced bond originator, to secure the best deal possible. The best deal does not necessarily mean the highest loan amount (bearing in mind the long term nature of a home loan, which will probably be 20 years) but rather to obtain the best possible interest rate at the outset.

A fixed interest rate means that at least one of the items of expenditure in your household budget can be planned with some certainty with no unpleasant surprises along the way, but it does require careful consideration.

The best time to fix interest rates on a home loan is when interest rates are low, but, human nature being what it is, most borrowers only think about fixing the rate when interest rates are rising, he said. It is unlikely that the average homeowner can “beat the market” and inevitably there is a cost to the home owner when fixing the rate.

There is a premium for raising funds over a long period of time. The banks have to take a view on future interest rates. So, in a market where interest rates are expected to rise, the banks will only offer to fix the rate after taking into account their expectations of future interest rates and will not fix at the current interest rate. The fixed interest rate home loan will, therefore, at some stage during the period of the loan, be higher than a variable rate mortgage.

Banks will only fix the rate for a maximum term of five years due to the risks they have to manage. Once the fixed rate contract expires, the home loan automatically reverts to the prevailing variable rate unless the homeowner has applied for a new fixed rate loan. Although a variable rate on a mortgage bond means that the buyer has to be flexible with their monthly budget, it is generally considered to be a better choice than a fixed rate option.

There are other steps the homeowner can take to minimise the payment of interest.

Where possible, always go for the biggest deposit when purchasing a home. It will help to secure a lower interest rate. In addition, monthly repayments will be lower, enabling a quicker repayment of the loan.

If possible, make sure that the monthly repayments on the bond are above the minimum required. An amount of R500 extra per month, for example, on a R1 million bond initially taken over 20 years at an interest rate of 9.75%, could reduce the overall amount by as much as R202 800 and the repayment period to 17 years.

Try to make extra repayments whenever there is extra cash available, such as a bonus or tax refund. “Even though you may feel that you are missing out now, it will benefit you in the long term.

It is advisable for buyers to keep in touch with their bank manager and a watchful eye on the interest rate being charged. Once a good credit record is established, a reduction in the interest rate being charged could possibly be negotiated.

“Do some scenario planning when making a decision on your home loan. Ask your adviser to prepare a schedule recording the effect of 1% increases in the interest rate on your monthly repayments so that you are fully aware of the effect on your household budget. You can then determine your breakeven point and decide whether you want to fix your interest rate. After all, you don’t want to risk losing your property.

Contact Mortgage Plus Bond Originators today, and we’ll do the rest.


Mortgage Plus Bond Originators

Tel: 063 047 0102 | Email:  info@mortgagepluscc.co.za | Fax: 086 560 1224
Our working hours are 08:00 to 17:00 Monday – Friday.
We are closed on weekends and public holidays.