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 homeloan. 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 100 percent bond. You can adjust your repayment per month at any bank to pay off your homeloan 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 a 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

Keep Your Cool When Lenders Ask Questions

More and more financial institutions rely on automated credit scoring systems when making lending decisions, but even these sophisticated systems can have trouble processing certain parts of your credit history, and it’s then that you’re likely to get a call from a human asking for an explanation.

“But this is no reason to panic about not getting the loan,” says Berry Everitt, CEO of the Chas Everitt International property group, “and certainly no time to get defensive and hot under the collar.

“You may well have been very good about keeping your credit rating up by never borrowing more than you could afford and always paying your bills. But it is also quite possible that in the past few years you have made some payments ‘late’ and that these are showing up on your record.

“It is important to understand that what credit bureaux and banks regard as ‘late’ payments are those made more than 30 days after the due date on the account, and that most will require an explanation for such incidents, even if they seem minor to you.”

The best course in these circumstances, he says, is always just to tell the truth. “For example, if you genuinely can’t recall why the monthly payment on a store card was made late once two years ago, say so. If you missed paying a telephone account because you were away on holiday, say so. Be honest if something happened that made you forget to post a batch of cheques one month.

“This sort of thing happens to everyone, and banks generally don’t expect a perfect credit record. Usually what they want is just to obtain a reasonable explanation from you that they can fill in opposite any credit query that their automated system has thrown up.”

Everitt says that those with really big credit problems in their past, such as bankruptcy or home repossession, should also be totally honest about it – and provide a full, detailed and documented explanation to their bank or originator before applying for a new loan.

“They should know that there is still a good chance of getting a loan if they can show with third-party verification that what happened was beyond their control – because of an accident, for instance, or because of a sudden serious illness or the loss of a job – and that their circumstances have now changed for the better.

“On the other hand, there is virtually no chance of a loan if they try to hide the earlier problems and they emerge during the bank’s application evaluation process.”

Remember by choosing us for a loan, you will get professional advice 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