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

Mortgage Plus Bond Originators is a very unique mortgage “home loan” company.

We get our business "the old fashioned way" -- we earn it.

We count on our happy, satisfied customers to build our referral-based business.

Most mortgage companies spend the majority of their time searching for new business. They flood your mail box with junk mail; their telemarketers "cold call" you at home and interrupt your dinner; they run misleading radio ads claiming to have "no closing costs" and "the lowest rates in town!"; they play the "bait and switch" game of promising a lower rate than they can truly deliver, etc. Those mortgage “home loan” companies spend most of their time marketing.

They are more worried about finding their next deal than serving your real estate "home buying" financing needs.

Instead, we want you to consider Mortgage Plus Bond Originators to be your trusted home loan advisor.

Why should you trust us?

Because much of our business comes from repeat clients and referrals, (the rest comes from this website). If we don't treat you right, you won't come back -- and more importantly, you won't tell your friends and family to use Mortgage Plus Bond Originators.

If we don't meet or exceed your expectations, leaving you with a positive mortgage “home loan application” experience, we will be out of business. Most other mortgage companies don't care if you are unhappy at closing because they never expect to see you again.

They just go back to marketing for NEW customers.

At Mortgage Plus Bond Originators, we count on repeat clients and referrals to keep us in business. That's why you can depend on the Mortgage Plus team to give you honest answers and fast, dependable service.

Some people think that all mortgage companies “Bond Originators” are basically alike.

Money is money, so what does "good service" really mean?

It means that we make the loan application process as easy and painless as possible; we are happy to spend time answering ALL of your home loan questions rather than rushing you through the loan process; we will NOT pressure you into making a decision, or steer you toward a loan product that pays a higher commission than the home loan you prefer, we will do whatever it takes to close your Home Loan ON TIME, at the best interest rates from various financial institutions “Banks”  with NO HIDDEN FEES.

In return, all we ask is that you refer your family, friends, and co-workers to Mortgage Plus so that we can give them the same level of personalized service.

The Internet may seem like an impersonal medium, but it is just a tool to make the home loan process easier and more convenient for our clients.

At Mortgage Plus Bond Originators we strive to provide "Personalized Service in a Computerized World!" If you prefer to meet us in person, we encourage you to contact us to set up an appointment face to face.

We look forward to working with you. At Mortgage Plus, we are committed to building long-term relationships. – Morne Prinsloo (CEO)

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