An individual

Any person over the age of 18. See Minor

Two or more individuals not married

Any natural persons over the age of 21 years who wish to purchase a property in their joint names.
Married couple out of community of property

This is where both partners have full contractual power. The bond can be in joint names, or either name, provided that the applicant qualifies in their individual capacity.
In community of property

The bond must be registered in joint names of both partners.
Foreign matrimonial property system

The contractual capacities of the marriage partners are viewed according to the law of the country where they were married.

Customary union (Cultural Law)

This is not recognized as a legal marriage. A woman may purchase property in her own right – except for a Zulu woman who is married in accordance with Section 46 of the Natal Code of Zulu Law. This states that she is unable to enter into a contract without her husband’s consent. The bond may be in joint names, or in either name, provided the applicant qualifies in their own capacity.
Customary union (Religious – Hindu, Muslim, ect)

This is not recognized as a legal marriage unless a magistrate or commissioner conducted the marriage. If it is not legal then the bond may be in joint names or either name, provided that the applicant qualifies in their individual capacity. If it is legal, then the bond must comply with the terms laid down in the marriage contract. The registering attorney will ensure that all documents are signed in accordance with the Matrimonial Property Act.
Minor

An unmarried person younger than 21 years must obtain consent from the Supreme Court in terms of Section 80 of the Administration of Estates Act 60 of 1965 before buying property.

Contract worker or worker seconded or recruited from abroad

Such a worker can buy a property only after being placed on record with the exchange control authorities.

Official or employee in the public sector

An applicant who qualifies for the Government Guarantee Scheme and is a government employee – for example, a member of the police or military – may buy property as a civil servant.

Close corporation

A close corporation can buy a property provided that Section 40 of the Close Corporations Act will not be contravened. This sets out the conditions under which a close corporation may finance the purchase of a member’s interest. The close corporation should be aware of the implications of Capital Gains Tax.

Company (PTY)

A company may buy a property provided that Section 38 of the Companies Act will not be contravened. This prohibits a company from financing the purchase of its own shares.
Informal body

Recognised churches and associations may buy a property.

Trusts

Inter vivo and testamentary trusts qualify to register a property in their name.

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

SA banks, hard hit by large numbers of home loan defaults during the recent recession, are set for a much better time in the next few years because of the quality lending “books” they are building now.

That’s the word from one of South Africa’s leading mortgage originators, who says: “The home loan business the banks are writing now is probably the best they have written in the past 10 years, and we expect it to prove very profitable within the next two to three years.

“For a start, they are already evaluating or ‘credit scoring’ potential borrowers now on the basis of a one or two percentage point expected increase in interest rates next year. And while this may disappoint many, it should ensure that those who do obtain home loans now have the financial resilience to cope with the predicted rate hikes, without defaulting and running the risk of losing their homes.”

In addition, home loan rates are currently not being discounted nearly as much as during the past few years, when borrowers in good standing could quite often secure a rate that was one or even two percentage points below the prime rate.

“What is more, there is a further shield for both banks and borrowers in the fact that there are really very few 100% loans being granted at the moment. Combined with the strict lending provisions contained in the National Credit Act, the requirement now for most homebuyers to pay a deposit of at least 10% – and usually more – offers protection against the effects of negative equity for both individual borrowers and the real estate market in general.

“Consumers who pay bigger deposits also benefit in the sense that banks will grant them loans at more favourable interest rates, which saves them money.”

Finally, profitability should be improved by the fact that the banks have streamlined the acquisition of new home loan business as far as their fixed costs go.

“Overall, we see that the lenders have stopped playing so hard for market share and started to really concentrate on the quality of their home loan business. And as this shapes up, it should serve to make them much less nervous about the home loan market, and about granting new loans – although we anticipate that these will very much continue to be granted according to the ‘new rules’ and not in the freewheeling way of the past. Borrowers will be taken seriously, as valuable customers, and that’s good news.”

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