Bond Originators and Mortgage Experts
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Our Mortgage Experts Specialises in First Time Home Buyer Loans, New Home Loans, Building Loans, Further Home Loans, Bond Switches and Mortgages throughout South Africa. Click Here to go to The Mortgage Plus Website.
We offer a wide range of advice on different home loan options - 0861 11 11 93*
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Home Loan Terminology
After operating in the home loan industry in South Africa for a number of years, Mortgage Plus has been able to build up the experience and thus the expertise necessary for giving the best assistance to those looking to take out a Home loan or Mortgage on a property in South Africa
We consequently become a specialist in the field of home loans with more and more people in South Africa coming to us for our expertly reliable home loan assistance services.
Before you apply for a loan, it might be best to get in contact with Morne Prinsloo the General Manager at Mortgage Plus Bond Originators that will explain the home loan and real estate terminology to you the consumer in addition to this he can also negotiate the terms of the home loan to ensure that you get the best possible deal. Applying for a home loan / mortgage on your own might be a complex and tricky task and a bond originator can assist you in speeding up this process and raising your chances of having the loan approved in a very short amount of time.
Home Loan and Real EstateTerminology in South Africa:
| Access Bond | You can draw money ( up to a predetermined amount ) from this type of home loan. |
| Administration Fee | This fee is charged by the lending bank to cover the initial costs of processing a home loan application. |
| Agreement of Sale | Contract stating the terms and conditions under which the property is sold |
| Assessment | This is the bank’s assessed value of the property. It will usually be done prior to the final approval of your home loan. |
| Assessment Fee | Cost of the administration work that accompanies an assessment. |
| Bona Fide | Means ” in good faith” |
| Home Loan / Bond Costs | Fees payable to the registering attorney which includes conveyancer’s fees, stamp duty and VAT. |
| Home Loan / Bond Registration | Fee payable for the registration of a home loan in the new property owner’s name. |
| Home Loan / Bond Term | Original term over which the home loan was taken. |
| Broker / Estate Agent | Person or persons who bring buyers and sellers together and negotiate contracts for them. |
| Building Loan | This type of home loan is usually issued to a buyer of vacant land for the purpose of building on the land. |
| Capped Home Loan Interest Rate | Limits the amount the interest rate on an adjustable rate home loan can change over the life time of the home loan. |
| Collateral | Assets that are required as security for your home loan. |
| Contract of Sale | This is the agreement between seller and buyer covering the price, terms and conditions of the sale. |
| Conveyance | Document used to effect a transfer. |
| Credit Profile | A report detailing the credit history of a prospective borrower that’s used to help determine borrower creditworthiness before a home loan application will be approved. |
| Deed | This is a legal document by which title of a property is transferred from one owner to another. |
| Default | Term use to denote failure to make payments on a home loan. |
| Equity | The amount by which the value of the bonded property exceeds the outstanding amount on the home loan. |
| Finance Charge | Interest charge on a home loan |
| Fixed Home Loan Rate | The interest rate on a home loan is fixed for an agreed period of time and will not change for that period even if the variable home loan rates rise or fall. |
| Foreclosure | Legal process by which a bonded property may be sold to pay off a home loan that is in default. |
| Freehold | Ownership of the property as well as the land on which the property is built on |
| Grace Period of Home Loan | Amount of time after the due date of the home loan payment in which a payment may be made without a late penalty fee being applied. |
| Home Loan Application | A statement of personal and financial information required by the bank when you apply for a home loan |
| Home Loan Plus Costs | Allows borrower to lend more than 100% of the property value to cover the registration and transfer costs. |
| Interest | Fee paid for borrowing money usually calculated as a percentage of the remaining balance of the amount borrowed. |
| Interest Rate on Home Loan | Annual rate of interest charged on a home loan. |
| Lender | Bank, Mortgage Company, or Mortgage Broker offering the home loan. |
| Mortgage Broker | Individual or company that arranges home financing for borrowers. |
| Mortgage | Agreement with the bank stating that the bank will lend you a certain amount of money in the form of a home loan that will be paid back over a period at a certain interest rate. |
| Offer to Purchase | Offer in writing from the buyer to the seller which becomes a legal contract once it is signed by all the parties. |
| Pre-Approval | Lenders firm commitment on a home loan. |
| Prequalification | Process of determining the amount of home loan you are eligible for. |
| Purchase Agreement | Contract stating the terms and agreement under which the property will be sold. |
| Refinancing | Process of paying off one home loan with the proceeds of a new home loan on the same property. |
| Second Mortgage | Additional mortgage placed on a property that has rights that are subordinate to the first mortgage. |
| Term of Home Loan | Period between the beginning of the home loan and the date the entire balance of the home loan is due. |
| Title Deed | This document gives evidence ownership of a property. |
| Underwriting | Process of determining the risks involved in a particular home loan and establishing suitable terms and conditions for the home loan. |
For further information contact Morne Prinsloo on 011 327 4489 or email morne@mortgagepluscc.co.za
If you would like to know more about your home loan services and mortgage requirements please phone the Mortgage Plus Head Office on:
Attached please find the Home Loan Application Form * - Short Home Loan Application Form
0861.11.11.93
info@mortgagepluscc.co.za
www.mortgagepluscc.co.za
The home buying and financing process
Purchasing a home and registering a home loan can be a stressful and lengthy process. It helps to know the processes and parties involved and the steps required for home loan registration.
Parties involved:
• Seller
• Estate Agent
• Buyer
• Mortgage Broker
• Transferring Attorney (appointed by seller to transfer the property to the buyer’s name)
• Home loan Attorney (appointed by the bank granting the home loan)
• Cancellation Attorney (appointed by the bank cancelling the home loan of the seller)
A single attorney can perform the bottom three transactions, but often there are at least two different attorneys involved.
1. Initiating the purchase
The buyer and the seller negotiate and sign an Offer to Purchase (OTP). The OTP, or Agreement of Sale, sets out the specific terms of the agreement between the two parties including details such as purchase price, deposit, date of transfer, occupational rental, etc.
2. Mortgage home loan application
The buyer, usually through the services of a mortgage broker, applies for a home loan with various lenders. There are four basic stages to the home loan application process:
• Submission – the mortgage broker submits your application to various lenders
• Approval in Principle – the bank approves the loan subject to a property valuation and sometimes with other conditions attached
• Valuation – the valuation takes place either physically or through computer aggregates based property description and recent sales in the area
• Final Approval – the bank officially grants the loan
The application usually takes between three and seven working days.
3. Home loan Approval
Once all, or some, of the lenders who received the application have approved the loan, the client will choose which lender they wish to do business with. The financing bank will then instruct the relevant Home loan Attorney to proceed with the home loan registration process. This can take up to three days. The mortgage broker will cancel the application at the other lenders.
4. Property Transfer
The seller advises the Transferring Attorney to transfer the property into the buyer’s name. The title deed and cancellation figures are requested from the bank that currently has a home loan over the property (if applicable). A statement of rates and taxes is requested from the local authority.
5. Home loan Attorney contacts Transferring Attorney
The Home loan Attorney advises the Transferring Attorney of the amount available for guarantees and requests the draft deed of transfer and guarantee requirements.
6. Cancellation Attorney
The Cancellation Attorney is requested to cancel the seller’s home loan upon receipt of a guarantee for the amount owing.
7. Transferring Attorney
The transferring Attorney receives the title deed and cancellation figures and sends a copy of the deed of transfer and the guarantee requirements to the Home loan Attorney. The Transferring Attorney requests that the buyer and seller sign the transfer documents. The buyer pays the transfer costs and the Transferring Attorney then pays the rates and taxes and the transfer duty.
8. Home loan Attorney
The Home loan Attorney prepares the home loan documentation and the relevant account. The buyer signs the documents and pays the costs. The Home loan Attorney prepares and issues the necessary guarantees, forwards them to the Transferring Attorney and prepares the home loan documents for lodgement with the Deeds Office.
9. Transferring Attorney
Once the Transferring Attorney has received the guarantees, they are forwarded to the Cancellation Attorney.
10. Cancellation Attorney
The Cancellation Attorney obtains consent for home loan cancellation from the bank which holds the seller’s home loan.
11. Documents prepared for the Deeds Office
After all the documentation has been signed and the costs paid, the transfer, new home loan and home loan cancellation documents are prepared by the respective attorneys for lodgement in the deeds office.
12. Deeds Office
All the documents are lodged in the Deeds Office by arrangement with the attorneys concerned. The Deeds Office takes approximately 2 – 3 weeks to check the documents before they are ready for registration by all the attorneys on the same day.
13. Bank pays out the loan
On the day of registration, the bank pays out the loan in accordance with the guarantees issued.
Allow at least 3 months for the registration and transfer of the home loan.
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
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