Types of Loans

South Africa’s Leading banks offer their clients a variety of home loans to choose from. A bond consultant will assist you in selecting a loan which best suits your requirements, and also help you through the loan application process. Below is a list of loans available:

First time homeowners loan

First time homeowners home loans are specialist loans, which are rapidly becoming popular as they allow cash restricted first time buyers to lend the total property sale value. This means that registration and transfer costs can be included within the purchase price of the residential property “Depends on bank to bank and product requirements” No deposit is required, providing first time buyers with an excellent opportunity to enter into the property market.

Variable Rate Loan

With a variable rate loan the interest rate is linked to the base home loan rate which may either rise or fall, depending on current market conditions. Should for example the base rate decrease by one percent so will your interest rate, and therefore if the base rate increases so does the home loan rate.

Fixed Rate Loan

With a fixed rate loan, the interest rate stays fixed for a specified period, usually between one and two years. Compared to other loans, the fixed interest rate will be slightly higher than the base home loan rate when the loan is taken out. A fixed rate loan protects the buyer from increasing interest rates, and provides a security in knowing exactly what their payments will be. Unfortunately fixed rate loans do not allow clients to benefit from any decreases in the interest rate over the fixed period.

Capped Rate Loan

Capped rate home loans allow clients to take advantage of both increases and decreases in the current interest rates, however they feature a maximum rate which prevents the home loan applicant from paying more than the capped rate. These home loans are not always available from banks and generally speaking, the qualifying criteria are often more stringent.

Reducing or step down loan

Also an extremely popular option amongst homeowners, the step down or reducing interest rate home loan guarantees a decrease in percentage in steps, for example 0.25% every six months for an agreed period of time, usually less than 5 years. This reduction of rates will save the homeowner a fair amount, and applies regardless of increases and decreases in the interest rate.

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

Standard Bank Home Loan Products facilitated through Mortgage Plus.

If you ready to purchase that property you have always wanted, why not apply for a Standard Bank home loan?

Standard Bank is one of the leading home loan institutions in South Africa and has assisted millions of individuals to obtain their dream homes.

Standard Bank complies with the National Credit Act of 2005 (NCA) and sound banking principles are followed which ensures that a professional service is rendered to individuals. Standard Bank also uses state of the art technology which allows for speedy home loan application and results. In fact, many South Africans are pleased to find a Standard Bank branch in many overseas countries in Europe.

But how can one go about to obtain a Standard Bank home loans and what does it entail?

Firstly, individuals will have to proof that they earn a fixed monthly salary of at least R 6000 on a single or joint salary.

When applying for a Standard bank home loan, individuals will require to submit other information such as the green South African I.D. document, proof of permanent residency and salary slips will have to be submitted with the actual signed application.

To find out what percentages the bank will offer please contact Morne Prinsloo on 011.327.4489

Various options are available to cater for customer specific needs and include interest rates, which are either fixed or variable. Fixed interest rates on a Standard Bank home loan simply means that interest charged on your home loan will never change even if country wide interest increase or decrease over time. Current interest rates, as from November 2010 on Standard bank home loans are charged at 9% (and is variable) but individuals may be charged at a higher or lower rate depending on their credit score rating.

Insurance to cover the value of the structure is also compulsory and need not necessarily have to be taken out through Standard Bank.

Standard Bank offers two types of structural insurance:

• Home Loan Protection Plan
• Home owner’s Comprehensive Insurance Policy

Mortgage Plus may also provide individuals with a pre-approved home loan certificate which indicates the amount that Standard Bank is willing to offer the individual and it allows individuals time to shop around for a property of their choice. It could speed up your application process and Standard Bank will only need to assess the actual property for the final process.

To apply for your Standard bank home loan Click Here

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:

Call us on 011.327.4489

Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za