Bond Originators is a must in South Africa when applying for a home loan

South African Banks have differing home loan, mortgage criteria, and product ranges for specific market segments. Logically the First time homebuyer has a vastly altered profile to the multi-millionaire private bank client seeking out his status-symbol property.

For most South Africans buying a home is one of the biggest investments a person will make in his or her lifetime. Because your home purchase is probably the most expensive one you will make, the homeloan itself is an important financial decision.

The prospect of owning a home is exciting, but it can also be a time of anxiety. This is a time when emotions must be kept in check, and one should make an informed financial decision.

Therefore, a daunting, unnerving experience that cannot be undertaken without professional assistance from a Home Loan Expert or a Bond Originating company like Mortgage Plus “Rated one of South Africa’s Top Bond Originator Companies In 2011”.

Bond Originating companies like Mortgage Plus cc work closely with the all the major financial institutions throughout South Africa and understand the precise parameters required in order to get you your first home loan, placing home loan consultants in the position to advise clients on how to accurately present the deal. The essence of Mortgage originators is that they can offer clients appropriate advice and choice on different types of home loan products throughout South Africa.

A mortgage originator provides the public with home loan assistance through relatively unchartered territory, while lowering mortgage bond costs and stimulating inter-bank competition. Around 60-70 %of South African home loan approvals have followed the bond-originating route reflecting the vital link mortgage originators plays in the home ownership chain in South Africa.

Mortgage originators like Mortgage Plus cc have agreements with all the major financial institutions “banks” in South Africa this means those clients fortunate enough to qualify for a New Home Loan from more than one institution has the enviable choice of accepting the one offering the best home loan interest rates and terms.

Bond originators capitalises on the short window of opportunity potential homebuyers have in which to secure home loan or mortgage finance to confirm their purchase. The home loan industry provides unbiased and extensive product knowledge that caters for each client’s specific needs, thus boosting their chances for a successful mortgage application while recognising that securing the bond and determining the associated costs is pivotal to the decision-making process.

Remember Banks want to reduce the amount of time wasted on unfeasible home loan applications and that is the value Mortgage Bond Originators offer to both the financial institutions and the man-in-the-street – having the expertise to weed out those bond applications that should never be placed before the banks.

As home loan specialists Mortgage Plus cc offer their clients a free home loan service and the best chance of getting a home loan on the best terms with the advantage of one-stop shopping and the convenience of choice. The key lies in giving clients a choice of banks and thus providing a hassle-free service without incurring additional costs.

For further information contact Morne Prinsloo on 011 327 4489 or email morne@mortgagepluscc.co.za

If you would like to know more about your home loan services and mortgage requirements please phone the Mortgage Plus Head Office on:

Attached please find the Home Loan Application Form * - Short Home Loan Application Form

0861.11.11.93

info@mortgagepluscc.co.za

www.mortgagepluscc.co.za

Studying the property market cycles of the past is the best way of catching a glimpse into the property market of the future, says Adrian Goslett.

Goslett says that timing plays a vital role in the return of investment when purchasing property, even though property investment is far more forgiving than other forms of investment. While purchasing investment property is not for the faint at heart, knowing what to look for and when to buy will make the process far less daunting to the novice investor and once mastered could lead to financial freedom.

He notes that when looking at property cycles over the past few decades there is a definite pattern that can be followed over a period of nine years. Every nine years there is an economic downturn which takes on average of 10 months to complete they cycle from the top to the bottom. The bottom of the cycle usual lasts approximately 24 months, followed by a slow solid upturn to the top with a recovery period of about 64 months. “With the South African property market currently in the recovery stage of the cycle, prevailing market conditions including the low interest rates and a vast range of well-priced properties, make this the ideal time for investors to take advantage of opportunities found in the market,” says Goslett.

Since the beginning of 2011, there has been a marked increase in activity in the property market due to a stronger demand by buyers, and so far, the demand for property during 2012 has proven to be even greater than what was experience during 2011. While there are still many properties available to buyers in the market, Goslett says that investors are realising that if they need to strike while the iron is hot. “With the market recovery in full swing it is likely that property prices will begin to rise in the near future and those that don’t make the most of the current market conditions will lose out. More profit can be made from buying property in a recovering market and selling in a boom period, than if the property was bought and sold in the boom period,” he says.

According to Goslett, although a recovering market is the ideal time for investors to purchase property, the same rules should still apply and investors must not rush into any transaction without concluding the necessary research. Certain elements such as location and type of property should always be considered in any market to ensure that the purchaser is buying into an investment that will produce a return in the future.

Having considered all the necessary aspects, well-informed investors will be able to recognise a good deal when they see one. A good market knowledge and idea of what properties are selling for in certain areas, will allow investors to identify and differentiate between an overpriced property and one that is market related. Purchasing a property that is priced outside of the market’s current perimeters will only erode the chances of seeing a healthy return in the long term. “Property buyers that can show the necessary affordability required by financial institutions are bound to find good value-for-money deals in the current market,” says Goslett.

While banks have slightly relaxed their lending criteria, investors will still need to show that they have the disposable income and the required deposit or sufficient collateral to secure finance. In any market, a favourable credit rating will always be beneficial to the investor and allow them to get ahead of the game.

“The cyclical aspect of the property market will always mean that investors will have to contend with the lows, as well as make the most of the highs. However, despite the peaks and troughs property continues to be a sought-after asset that appreciates in value over the long term,” Goslett concludes.

If you would like to speak to a Professional Mortgage Specialist about your lending requirements, please phone Mortgage Plus Bond Originators on:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za