South African Homeowners

Given that the average house price in South Africa is approximately R800 000 and that most people take out a hefty bond to finance their home, home owners would be well advised to prevent  additional property-related expenses by avoiding simple oversights.

This is according to Mortgage Plus Bond Originators, who advises that consumers can safeguard themselves financially by taking note of five of the most common property-related mistakes made:

1. Shop around before securing a bond

Shopping around with multiple banks and negotiating the best deal can make a big difference to your monthly bond repayments.

A bond originator is able to assist by submitting an application simultaneously to multiple lenders, ensuring a greater chance of approval and on the best terms. Originator consultants understand the different credit criteria and requirements of each bank and are able to provide independent advice to potential home owners.

Additionally, duplication of documentation is avoided ensuring fast approvals while benefiting from a single point of contact to manage the entire process. A bond originator’s service is also at no cost to the homebuyer and without any obligation to accept a particular loan sourced.

2. Under-insuring your home and contents

If you’ve made any improvements to your property since taking out your home insurance, it will have changed the value of your home. Significant changes to your house will increase the value it should be insured for, so it’s important to keep your insurer up to date with any changes.

Also, don’t forget your contents insurance as most people often underestimate how much their belongings are worth. If you purchase new furniture or electronics, then you should review your contents policy (at least annually) to ensure that you have adequate cover.

3. Failing to take basic steps to secure your home

It’s all very good and well to have a home contents insurance policy, but if you don’t take the appropriate measures to secure your property, you may find yourself seriously out of pocket if you are burgled.

If your home fails to meet your insurer’s security requirements, then your policy will become void, even if you’ve paid premiums for years. Don’t waste your insurance premiums or, worse, face having to pay to replace stolen possessions. Read your contents policy carefully and ensure your home meets its minimum security requirements.

4. Using a sub-standard contractor

Substandard home improvements can cost SA consumers millions every year and can actually reduce the value of your home, or worse, cause expensive damage. Unfortunately, the process of sourcing a reliable builder and managing a building or renovation project can be extremely stressful, but if done incorrectly can add lasting financial stress for a homeowner.

To safeguard yourself always remember to do a thorough background check on anyone who is going to take a hammer to your home. This includes requesting to see proof of their building credentials which can include memberships such as the Master Builders South Africa (MBSA).

5. Spending on improvements that add little value to your home

Not every improvement will add value to your home. For example, new carpets costing R50 000 add very little value to your property’s overall worth. However, the right paint job can add up to 10% to your home’s value.

Your first home improvement priority should be to ensure the property is structurally sound. Roofing, windows, damp proofing and the electrics should all be in top condition and if they’re not, should be at the top of your home improvement list.

Once you’ve taken care of the structural side of things, you can move on to improving the look and feel of your home. Have a discussion with your local estate agent to get some advice about what features can add the most value to your home.

Tip: If you’ve made any improvements to your property since taking out your home insurance, it will have changed the value of your home. Significant changes to your house will increase the value it should be insured for, so it’s important to keep your insurer up to date with any changes.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

The Advantages Of Employing A Bond Originator

If you are presently in the market of purchasing a new home, you should definitely consider employing the assistance of a bond originator for this particular type of task. A bond originator is defined as a person or outside company that will act as your personal assistant when it comes to getting you approved for a home loan.
These individuals will be responsible for submitting all of your paperwork to various lenders in order to assist you with obtaining a home loan that will be suitable for your present budgeting parameters. There are a lot of people that are choosing to use these individuals to assist them with hunting for a dwelling for themselves, because the individual who is need of a home can easily locate the dwelling and allow a separate entity to do the remaining paperwork to help them get approved for a home loan for the place that they would like to reside in.

The great thing about these outside entities is they already have large ties to various lenders. This means, they already have a keen idea of what certain lenders can do when it comes to approving outside parties for loan arrangements to purchase a home.

Not only will one of these private entities help you locate a home loan that will work within your current budgeting parameters, but they will also submit your application to several different lenders at one time, in order to ensure that they can help you obtain the best loan amounts possible. These originators will negotiate your payment terms with several different lenders, and do their best to ensure that they get you a loan that has a low monthly payment, accompanied by a low interest rate.

By submitting your application to various lenders and negotiating with the banks on your behalf, you can rest easy that by employing the assistance of a bond originator that you will always be given the best rate possible for your loan. Another great thing about these bond originators is you do not have to pay them out of pocket for their services.

The individuals will end up making a portion of their money from the bank that decides to render you a loan. The originator will be given commission from the bank, by referring you to them as a new customer. There are not a lot of things in this world that are free, but getting free assistance to help you find the lowest rate on your monthly home loan payments is free thanks to the services that these bond originators render.

Searching for a home to purchase can be a tedious task. Not only do you have to be able to continue on with your typical daily duties, but you will also be forced to submit various applications to different lenders until you are able to locate a lender that is willing to work with your current financial situation.

Most people when it comes to searching for a home loan will end up paying more money then what their dwelling is worth, simply because they do not have the time to search through different lenders in order to obtain the best rates. The great thing about bond originators is they are willing to go to bat for their customers in order to ensure them that they are getting the absolute best rate on their home purchase.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za