Home Loan & Property Buying F A Q s

• To whom is my deposit paid?
Depending on the stipulation in the contract, the deposit is either paid over to the Estate Agency or the Transferring Attorneys as they both have trust accounts where your money is protected. Never pay the deposit directly to the seller or the individual agent and always insist on the relevant receipts.

• Can I claim interest on my deposit?
Interest on deposit is usually paid to you after registration of transfer. You can request that either the Estate Agency or Transferring Attorney holding the deposit act in your interest by arrange for the deposit to be invested in an interest-bearing account.

• To whom is occupational rental paid?
It is easiest to pay occupational rental to the Estate Agency or Transferring Attorney who will either pay it directly to the seller or into the seller’s home loan account. You can pay it to the seller directly but may then be asked to provide proof of payment.

• How long will the transfer take to register?
This usually takes about three months from the date of sale, depending on the circumstances and due dates for the home loan grant stipulated in the deed of sale. Registration can be completed within 6 weeks to 2 months from the date of sale if there are no complications or delays from any parties involved in the deal.

• What is the cost of transfer and home loan registration?
There are schedules of transfer and home loan registration costs available from both estate agents and conveyancing attorneys. Transfer costs are based on the value of the property and whether you are buying as a natural person or legal entity such as a Trust, close corporation or company. Home loan registration costs are based on the total registered value of the loan.

• When must my transfer costs be paid?
Transfer duty has to be paid in advance and is usually due a few weeks after the date of sale. Any delay in making this payment will unnecessarily delay the transfer.

• Who will register the home loan?
All the banks have panels of conveyancers that they use for home loan registration and one of these will be instructed to register your home loan. Your mortgage broker will have special rates with various attorneys on the banks’ panels and it is advisable to use one of those. Furthermore, if the transfer conveyancer is also on the bank’s registration panel it will be expedient to let them do the registration as well.

• Who will contact me on registration ?
Your conveyancer’s secretary should contact you on registration and provide you with a final statement of account. Your estate agent may also confirm registration. Finally, your bank will send you a letter advising you of the registration of the home loan and the date when your first installment is payable.

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