Smart Bond is a housing finance solution for applicants earning a monthly household income of R15 000 and below. With Smart Bond, approved customers are able to enjoy 100% bond finance, i.e. there is no deposit required.

More about: Smart Bond Overview

Why do I need this?

What can I do with this?

What will it cost?

Do I qualify?

To qualify for Smart Bond, the following is required:

• You need to be a South African citizen, formally or self-employed
• Your salary/income must be paid into a bank account
• You must not have had judgments and/or defaults of more than R1 000 against you in the last 12 months
• The property you intend to buy must be acceptable for lending purposes
• Your bond instalments must be paid via a debit order or payroll deduction facility

You should still be able to afford your bond instalments, including the following:

• Current expenses and other monthly debt instalments
• The new expenses relating to the new home you are buying

You can get this at:

• MORTGAGE PLUS cc
• www.mortgagepluscc.co.za
• 011.327.4489
• info@mortgagepluscc.co.za

What do I need to do?

Complete Smart Bond application form and hand it to the consultant / fax it to 086 560 1224 together with the following documentation:

• A copy of your valid Identity Document*
• Your latest salary advice/pay slip*
• 12 months’ bank statement if you are self-employed and not banking with FNB
• Details of the property you are buying

*For you and your co-applicant where applicable.

Legal:

Once your bond has been approved, you will be required to sign a loan agreement that stipulates the conditions, requirements and responsibilities pertaining to you and the bank.

The bigger portion of your bond instalments will go to paying back the interest for the loan. Therefore it is important to choose the right type of rate. You can normally choose between a fixed rate or a variable.

With a fixed mortgage rate your instalments will remain the same, even if the prime rate increases. Often the banks can fix an interest rate just under the current prime rate. You can often choose over what term you want the rate fixed.

Pros:

A variable mortgage rate will fluctuate in conjunction with the banks prime lending rate.

Normally you can obtain a variable rate that is below the current prime rate. This means you will benefit by means of the lowest possible instalment at that point in time.

It is advisable to go for a variable mortgage rate when there is a downward fluctuation in the interest rates. When the interest rate goes down, your effective rate will reduce and your bond instalment together with it.

Cons:

If the interest rate increases, so will your effective rate. You might find that you are paying substantially more than when you initiated the loan. This can make it more difficult to budget for your repayments.

To apply for a home loan OR refinancing, click here for a No-Obligation Quote , you will have to fill out a short application form. You will then receive a FREE quote from well established, nationally recognized lenders. You do not need to decide now whether the loan is for you. or go tp www.mortgagepluscc.co.za for more options.