What Is An Access Bond?

Access Bonds are by far the most popular type of home loan currently available.

An Access Bond is very much like an ordinary home loan except it has an added saving benefit attached to it.

The savings portion of this type of home loan, allows you to pay extra funds into you bond, and still have access to those extra funds.

The big benefit is that any extra monies you put into your bond account will help to reduce the total interest you end up paying on the outstanding home loan.

Since the interest on your home loan is calculated on the total outstanding amount. If you pay a little extra into you bond every month, you be lowering the total outstanding amount and therefor you’ll pay less interest.

The reason why Access Bonds are so popular, is because you continue to have full access to any extra money you place in your bond account, while enjoying the benefit of paying less interest overall.

Some banks ,do however, only allow you to withdraw R 1000 or more from your Access Bond account.

For more details regarding Access Bond, speak to a Mortgage Plus Home Loan Consultant.

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

Wise individuals will always attempt to get the best value for their money, and one way of doing so is to apply for home loans rather than renting from someone else.

In South Africa individuals can make use of estate agents or use an online loans service to look for their desired home. The internet has transformed the way everyone does business and individuals can make use of online home loan or bond calculators to determine the home loan value they can qualify for. Off course other factors such as the credit rating of individuals will also influence the amount and interest rate charged when the actual home loans application is submitted.

Individuals are always advised to look beyond the dream home and should look at other factors such as the area in which the property located.  Factors such as the market value of surrounding properties will give individuals an idea of how easily they will be able to sell their property in future if they wish to do so.

Individuals normally have three options when wanting to apply for any home loans, and can either directly make appointment at the bank, make use of an estate agent or make use of bond originators.  Estate agents receive commission from the seller when a sale has been made whilst bond originators receive a fee from the bank directly.

Bond originators works with major banks on a full time basis and very often there are greater advantages in making use of bond originators then taking the process into your own hands. Such advantages include better home loan rates as bond originators submit thousand of home loan applications annually and therefore have better negotiating power.

Other than lower rates, bond originators take the hassle out of a home loan application and will handle the whole application process from beginning to end.  They will handle all the paper work and individuals will never have to speak to any bank directly.  Their service includes a detailed explanation of the home loan application process so individuals will never be left in the dark.

Using a bond originator comes at absolutely at no charge to the individual and originators will also obtain various quotes from various home loan financial institutions to ensure that the best value for money is given.

There are five important tips that individuals should consider when considering home loans:

1. Ensure healthy credit rating by making regular monthly payments on time to all creditors.
2. Reduce monthly expenses and by increase your monthly disposable income with as little as R1300 per month, could increase your home loan with R100 000.
3. Make use of bond originators who will be able to obtain quotes from various home loan institutions at the best interest rates.
4. Obtain a pre-approved home loan.  Mortgage Plus can provide a certificate of the home loan value they are willing to give you which could speed up the purchasing process of your desired home, and will give you an advantage over other possible buyers who show interest in the same property.
5. Be realistic. Even if the bank offers you a high home loan value it doesn’t mean you have to use the full amount to purchase a property.  Additional costs such as rates, taxes, levies and insurance will also be added to your monthly home loan installment.

Individuals seeking more information on home loans in South Africa can enquire below:

Mortgage Plus offers a wide range of advice on different bond options and further advice on the above. Please call us for further information on:

Complete this short form online

Call us on 011.327.4489

Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za