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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*
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What is Home Loan or Bond Switching?
The South African property market has become extremely competitive as the financial institutions fight for market share. So, you, as the consumer can benefit from this. Switching simply means to moving your home loan from one financial institution to another.
Why would you do it?
Well the answer is simple: To get a better interest rate on your home loan. A reduction of merely 0.5% on your interest rate could save you thousands of Rands in the long run. Another reason to switch is that not only has another financial institution given you a better rate but they may have also offered you additional lending against your property.
The Costs of Switching.
The two points mentioned above makes it look very attractive to move your home loan, but you must be mindful of certain costs involved. Your current financial institution, more than likely, has penalty clauses written into your initial home loan agreement, which means you may end up paying 90 days’ penalty interest on your home loan if you cancel, which could amount to quiet a hefty amount.
Who is going to pay the attorneys fees and other registration costs to register your new home loan and what about the bond cancellation costs of your existing home loan? There are also valuation fees and initial administrative fees to be paid on the registration of a new bond!
With all this in mind it could still be a worth while exercise to move your bond, though. Due to the competitive nature of the market some financial institutions are prepared to waive valuation and administrative fees as well as pay for (or a portion of) the registration and cancellation costs involved.
How do you get around the 90 days penalty fee?
It is advisable to contact your financial institution to discuss this. Most financial institutions accept a 90 days notice period of your intention to cancel your home loan.
If you decide to switch your home loan you will need to provide the new financial institution with copies of your pay slip, bank statements, IDs and all the necessary documents required to prove affordability.
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
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
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