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

Banks start to ease up with bond applications

WITH banks beginning to relax their lending policies, there is support for a revival in the property market and now is the time to apply for a bond.

There should be a much-improved chance of being approved for a loan on favourable terms. Banks are again offering 100 percent loans and the current lower interest rates make it a better time for consumers looking to buy.

Before you even apply for a loan, check whether the property is affordable.

Determining the right price range is an essential first step to avoid wasting time looking at unsuitable properties.

A property finance consultant will take you through the exercise of establishing what you can afford, taking into account your specific financial requirements.

Monthly repayment affordability is generally calculated at 25 to 30 percent of joint gross income, but other criteria, including existing debt commitments, may affect the size of the loan that the bank will grant.

Remember that the hidden costs (transfer and bond registration fees) usually have to be paid up front and add a sizeable amount to the cost.

One way to ensure that the loan you apply for will be granted is to get a prequalification. Companies such as Mortgage Plus will, at no cost, prequalify you for a certain bond amount, which takes the stress out of applying for a bond once you have decided on buying a property. Another positive factor is that buyers who are prequalified are in a much stronger position to negotiate with sellers.

Bond applications may be declined for several reasons: you may not be able to afford the monthly loan repayments, or may require a 100 percent loan that would push the repayments beyond your reach.

Another critical consideration is your credit profile. This includes your employment history and consumer bureau results, which provide a picture of your debt and payment history. If the bank considers you a good credit risk, it will assess the value of the property to be purchased.

If this, too, meets all the relevant criteria, the loan is usually granted. The mortgage originator also often motivates the merits of a particular loan application to the bank’s credit manager.

To improve your credit record, cancel out-of-date credit cards and ensure that you pay all instalments by the due date every month.

To help the bank determine its risk, you will have to provide personal information such as bank statements, salary slips, a statement of assets and liabilities, a statement of your monthly expenses and information on your credit history, including whether you have ever been insolvent.

An originator can ensure you have all the correct paper work to avoid unnecessary delays.

Mortgage originators shop around and negotiate the best deal for customers for free. Obtaining a preferential rate of just 0.1 percent below prime can make a big difference to monthly repayments. But a mortgage originator must take more than just the rate into account and will structure a package to suit an individual.

To structure a package to suit an individual needs please phone (011)327-4489 or go to www.mortgagepluscc.co.za