The Right Bond for You

There are so many home loan choices available; it may be hard to identify the bond that is right for you. All banks provide a home loan for anywhere from 10 to 30 years, repayable monthly at an interest rate margin lower than prime rate. All of them look so attractive – how do you make a choice?

Everyone has different needs and circumstances and everyone requires unique solutions. You need to choose a bond that best suits your needs and situation and that best meets your requirements.

Each application will be looked at on merit. Your credit history and banking record plays a big role when applying for a home loan. Debit orders are the preferred way of repayment, but you can negotiate with your bank if this is not the most convenient way for you to pay.

Life insurance is compulsory on the smaller bonds under R200 000 and you do not need to purchase life insurance from the bank, you simply have to prove that you are covered.

As a first time homebuyer, you will qualify for a 108 percent bond ‘Only on specific products‘ to cover all bond costs. You can adjust your repayment per month at any bank to pay off your home loan faster.

Different banks – different options

ABSA offers Multiplan, which allows the freedom to structure your homeloan account into separate accounts with their own terms and conditions. All accounts will be managed through a single account.

First National Bank rewards their clients with eBucks on all homeloan products. This is an attractive option for homebuyers, as they will receive some return on their investment – sooner than usual.

Standard Bank offers Business Mortgage for financing residential properties, which have been converted for business use.

Nedbank offers an investment product called Buy to Let. This product adds rent to your income so you can borrow more and invest in more property.

There are so many banks and each bank has its own set of products for homebuyers. It is important to know the different products (and hidden small print!) so it is best to go to Mortgage Plus bond originator who is familiar with different banks and their products. The originator can guide you and help you make the choice that is best for you and your circumstances.

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