Although right now may be the best of times to purchase property, it certainly is not the easiest of times to secure a bond. During times like these an experienced bond originator could save the day.

The banks have become increasingly skittish about extending credit to consumers. And this includes ‘traditionally safe’ forms of credit, such as home loans.

The three main instigators that are party to the banks’ growing uneasiness about the mortgage market are: the household debt to personal disposable income ratio; the poor growth in house prices; and the National Credit Act.

1· Household debt to disposable income increased. In effect, this means that many households are either over indebted at present or finding themselves very close to that unwelcome position.

2· The National Credit Act placed the over indebtedness monkey squarely on the backs of the banks. If a bank extends credit that directly results in a consumer becoming over indebted, the bank can be sued for what the Act terms ‘reckless lending’ by the affected consumer. The checks and balances to ensure that this is avoided, are stringent and contributed to 50% of the home loan applications lodged being rejected.

3· To exacerbate matters, the property market has not been performing well of late. Some areas have even started showing negative growth (in real terms)., This means that the properties in those areas may no longer serve as sufficient collateral to cover the loans originally extended to the property owners. In response, three of the big banks have changed their Loan to Value guideline percentages, making it very difficult to obtain a 100% home loan.

Given the above, you would do well to secure the services of an experienced bond originator. It will help you to better stack the odds in your favour:

Bond originators typically have a banking background. This means that they have a good end-to-end understanding of the evaluation and approval processes followed by the banks’ mortgage departments. They usually know who is who in the banks that they represent, which could sometimes come in handy.

Bond originators can help you pre-assess whether you are likely to qualify for a home loan and calculate the maximum amount you will be able to apply for. To do this, your bond originator will probably ask you to provide some personal details, employment information, a list of your assets and liabilities and a list of your monthly income and expenses. If you are comfortable with providing your bond originator with a copy of your credit report, it will help them make an even more accurate assessment of your situation.

Bond originators work with multiple banks. Once you have found a home you would like to buy, the bond originator will lodge the necessary paperwork (application and supporting documentation) with all those banks that are likely to approve your application.

Bond originators tend to secure the best interest rates. When dealing with banks as an individual, you are less likely to achieve the same discounts as a bond originator typically would. Realising that your bond originator will have approached multiple banks, the banks usually give the best discount possible for your profile fro the outset.

Bond Originators remain involved until all the paperwork is done. Instead of leaving you to your own devices once you crack the nod from one of the banks, the bond originator will continue assisting you until the deal is legally and officially done.

Bond originators’ services are free. You do not pay for your bond originator’s services, the bank does.

To conclude
The services of an experienced bond originator in times like these are essential. They understand the current dynamics of the banking industry; they know how to navigate their way through the application processes; and they are fully aware of what is needed to ensure that your application is successful in the end.

By choosing Mortgage Plus for a loan, you will get that continual service to make sure you are getting the best deal possible.

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

MORTGAGE BONDS from Mortgage Plus     (011)327-4489

There are so many types of mortgage bonds which are currently available that it can be an often confusing and intimidating task when wanting to take out a mortgage bond which will be most ideal for you. This is where Mortgage Plus can help. With their in-depth knowledge in the mortgage bonds available and what each option entails, this mortgage bond originator is able to guide the prospective of a mortgage bond to eventually decide upon the best option which will match their needs and requirements.

These numerous types of mortgage bonds which are available from the major banks in South Africa such as ABSA, Nedbank, FNB, and Standard Bank, include a few of the options as listed below:

First time buyers Home Loan: This is a special mortgage bond option in that it is ideal for those who have never owned a property or taken out a home loan. With this mortgage bond, the banks will lend you more than 100% of the property value, enabling you to include the transfer and registration costs into the mortgage bond; and hereby making it easier for you to enter into the property market. No deposit is required with this option.
(for the right purchaser) 

A Variable Home Loan: Given at the negotiated interest rate, this mortgage bond option is the traditional home loan optional. Home Loan rates are always negotiable, and are generally affected by the amount of the loan taken out. The smaller the loan, the less chance you have of getting below the prime lending rate. With this type of home loan, if the interest rates increases by 1 percent, your home loan rate will increase accordingly. If the interest rate drops, so will your home loan rate.

Fixed Home Loan Rate: With this type of home loan, your interest rate is fixed for a period of time; for one or two years on average. When considering this mortgage bond option do keep in mind that the interest will be slightly higher than the current loan rate. The beneficial advantage of this option is that it offers you protection from rising interest rates, so for that period of time you know what your bond repayments are. The only downside is that if the interest rates drop, your home loan rate will stay unchanged, resulting in you having to fork out more money at the end of the day.

Capped Home Loan Rate: With this type of Home Loan, you will never pay more than the capped rate, as your interest rate is capped at a maximum rate of interest for a period of time. And if the interest rates increase, you will never pay more than the capped rate you have negotiated. The outstanding pleasure which comes along with picking this option is that you will reap the benefits in the case that rates decrease.

Please do take note that this type of mortgage bond is not so readily available, and there is certain criteria required before your designated bank will approve your application.

For more information on these mortgage bonds and other options, speak to one of Mortgage Plus Mortgage Bond Originators and they will give you details and advise to set you on your way to taking out a mortgage bond you can ultimately afford and will enjoy in the long run.

Quick Mortgage Bond Application Online

Mortgage Plus has a facility online which allows prospective clients of mortgage bonds to apply quickly. Essentially this innovative service of Mortgage Plus has been well-accepted as it saves time and takes away the frustration which would usually come along with making an application for a mortgage bond.

This is a free service, making another reason for the popularity of applying for a mortgage bond online.

So what are waiting for? Mortgage Plus is willing and able to help you get the best mortgage bond you can at the lowest possible rates.

With Mortgage Plus there are no surprises.

Get in contact with Mortgage Plus today and experience the joy of having a mortgage bond expert on your side.

Mortgage Plus : knows the business of mortgage bonds.

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za