What Every First Time Homeowner Should Know About Home Loans in South Africa

For many first time homeowners, finding a property that meets your needs is something that may take months to achieve. Whether you are searching for a compact family home that offers the perfect place for your children to grow up in, or a new apartment in the city, the search for a property that is in the right area, at the right price, with the right

features is no easy task. In the same way, finding the right partner for home loans in South Africa should also not be something that is done in haste.

Choosing a home financing provider without understanding exactly how the process works can cost you a fortune in hidden fees, high interest rate and unrealistic payment terms. Instead, take the time to find a financing partner who understands your specific needs, who will be able to work with you each step of the way as your financing needs change.

Some of the factors regarding home loans within South Africa include:

• Interest rates – these will change over time, but to begin with you should be getting a competitive interest rate that will not break the bank. Fixed interest rates are set at the same amount over time, while variable interest rates change as your financial needs change.
• Payment terms – depending on your budget and needs, payment terms can be selected over anything from ten to 20 years. This will allow you to afford your new home without falling into serious debt, with payment plans spread out over time to ensure that you can easily make your monthly payments.
• Loan qualification – you will qualify for different sized home loans depending on your income. Couples are able to combine income, while singles have a sole income that may affect whether they qualify for a larger loan. In this way, your financial needs are carefully considered to ensure that you do not risk serious debt.
• Additional costs – it is always a good idea to find out exactly what costs you may incur for your home loan. Some providers charge an early payment penalty for homeowners who pay off their loans before the prescribed date. Others may charge late payment penalties too. Don’t be afraid to ask about all potential costs before choosing your home financing partner.

Best Tips for First Time Buyer Home Loans

While it can be a hugely stressful step to purchase your first home, do not let the daunting process deter you from achieving your dreams of home ownership. To be prepared, make sure that you have all documentation ready so that you will be able to begin the process as soon as you have found your ideal homeloan partner. Set a budget, and do not be tempted to purchase property that is not within your budget – the most effective way to ensure that you are able to finance your home is to choose property that you can realistically afford to purchase. – affordability-calculator

Mortgage Plus Home Loans makes the process as pain-free and simple, with a wide range of loan plans that suit every budget and specific needs. This allows you to focus on the excitement of finding your dream home, along with all the plans that you have to make it your own.

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

First time buyers

Well done! The decision to buy a home has proven to be one of the best made for millions of happy homeowners. It is a fact that property is a good investment, especially when you compare it to paying rent. It is important, however to enter the property market with a good understanding of how a property purchase works, what your costs will be and a respect that this is probably one of the largest financial commitments you will ever make.

Best advice

Your Mortgage Plus consultant will give you the best advice on all aspects of your home purchase, and most importantly on financing it, particularly when the banks differ in their approach to lending. We will help you understand the different interest rates, fees and charges, and terms and conditions available. We will explain to you the features of the different loans and why they are more suited to your individual requirements.

Important Pointers

• Know what you can afford and the costs
• Consolidate your finances
• Significant savings are possible by consolidating all your finances. As home loan rates are significantly lower than those for personal loans, overdrafts and credit cards, but significantly higher than savings and current account rates, it makes sense to consolidate everything into your home loan account.

Minimise your Mortgage
By effectively structuring your finances, you can significantly reduce your total home loan debt. Arranging part of your salary to be credited directly to the loan and making additional repayments on an ad hoc basis (like when you get a bonus) will have very beneficial results. By sticking to a workable monthly budget and avoiding unnecessary debt, you can repay your loan much more quickly and save vast amounts of interest. To find out how much interest you can save and how many years you can take off your loan, contact us today.

Example

You can settle your home loan in 5 years:

• Pay off an extra 1.2% of the original capital debt each month (R 1 200 per R 100 000)
• Adjust for interest rate changes when they occur
• Don’t access funds already paid off

Whilst this may mean some sacrifices, you will save a fortune in interest.

To qualify:

• Deposit of anything from 0 % – 30%
• First time home buyers only
• Have a clean credit record.
• Minimum loan amount of R 100 000
• Single or joint income must be minimum R 6 000 a month
• Your monthly bond repayments cannot exceed 30% of your gross monthly income. Also refer the National Credit Act stipulations.
• Permanent employment

You can take advantage of the option provided by certain banks of a 3-month holiday on home loan repayments.

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