Bond Originators and Mortgage Experts
South Africa's Leading Bond Originator and Mortgage Expert Blog !
South Africa's Leading Bond Originator Blog - Apply Online Now!
Our Mortgage Experts Specialises in First Time Home Buyer Loans, New Home Loans, Building Loans, Further Home Loans, Bond Switches and Mortgages throughout South Africa. Click Here to go to The Mortgage Plus Website.
We offer a wide range of advice on different home loan options - 0861 11 11 93*
3
Banks offer a home loan package with an access facility should you wish to take it up – but what does it mean? It provides you with access to the cash you already have invested in your home. The difference between the value of your home and the amount that you owe the bank is the EQUITY in the property. Equity can be as a result of paying in a deposit, or through the appreciation in value of the property, or even the savings that you have invested in your home loan by paying it off at a faster rate.
It is advisable to request an access facility when applying for a home loan. What are the benefits?
- Most banks offer access to your equity in the property via internet banking or even from an ATM, which makes accessing cash very convenient and easy.
- By depositing your savings into your home loan account, you can enjoy tax-free savings at the prevailing bond rate that you are eligible for at that particular point in time. Take a good look at the interest that you earn in your savings account and compare it with what the bank charges you to lend that money back to you. Then consider that you will also pay tax on the interest that you have earned in your savings account.
- You have flexible access to equity in your home loan for those high-value items that traditionally you would have financed through hire-purchase, lease or rental agreement. Advantages include flexibility i.e. you could pay your car off over 20 years and save on interest. Repayments are calculated at the bond rate that you are enjoying, which could be as much as 5% lower than lease or HP rates!
- You now have flexibility with your repayments – you can double the bond repayment, but still have access to that ‘extra’ cash.
When you need to access the funds you will still go through a similar re-advance approval process with the same forms and proof of earnings. The bank needs to assess your ability to service the additional amount.
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
Debt Consolidation Loans
Mortgage Plus Debt Consolidation Loan is tailor-made for you, to consolidate high interest bearing debt into your home loan.
Use the funds available from your Property and consolidate all your High Interest bearing Debt.
What is debt consolidation?
In the past easy access to debt and the rise of interest rates and cost of living has resulted in some being unable to repay their debts and still maintain a reasonable lifestyle. Debt consolidation is a solution to this problem.
A home loan is secured by your property and therefore carries one of the cheapest interest rates. The goal of debt consolidation is to increase the amount of your existing home loan and then use this money to settle all your other debts in full. Thus you end up reducing your monthly payment amount due to the lower interest rate and monthly finance charges offered on your existing home loan. The end result? You only have the one account to pay and that is your home loan.
Why would you not be able to consolidate your debt?
There is the possibility that on application to the bank, you are unable to increase your existing home loan due to an unfavourable credit payment profile or ITC. Under the new NCA (National Credit Act) the banks are unable to lend to you.
The banks will look at your cash flow affordability including your current payments on non mortgage debt. They do not look at your improved cash flow position after consolidation has taken place. As a result you may not qualify for a mortgage loan.
Not with Mortgage Plus.
Mortgage Plus Debt Consolidation Loans is tailor-made for clients who are unable to get a loan with the banks due to an unfavourable credit record, ITC rating or insufficient cash flows.
Our Debt Consolidation Loans aims to rejuvenate your credit status.
Who can use Mortgage Plus Debt Consolidation Loans?
| • | If you, the home owner, have equity in your property |
| • | The estimated market value on your property is higher than your current home loan |
| • | You earn sufficient income to service the cash flow on your new consolidated loan |
How does it work?
| • | Your existing home loan and other debts are settled with a single amount |
| • | You only pay one amount each month for all your debt |
| • | Avoid debt administration |
| • | Ownership of the property remains with you |
| • | Judgements against you are rescinded |
| • | You only pay interest on the loan amount |
Why consolidate debts?
| • | To save on interest payments on your current high interest bearing debt- a home loan is one of the cheapest sources of finance around. |
| • | You only pay for one account’s fees as all loans are consolidated into one. |
| • | By having less accounts on your name, in this case only one, you will greatly improve your ability to manage your debt efficiently thereby minimizing your exposure to a potential bad credit record. |
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
Back to topCheap Insurance
Business Partners
Business Partners
