Home loan advice for first-time buyers

Looking to buy your first house, flat, or other type of residential property? Be sure to read on for some critical advice on buying a house and applying for your first home loan…

Do your homework properly – www.propertymax.co.za
Informed buyers get better bargains. If you familiarise yourself with the property market and get a feel for what properties cost in a certain area, you will recognise a good deal immediately, while simultaneously ensuring that you don’t end up paying too much for a property that isn’t worth it.

Be realistic about what you can afford – Affordability Calculator
A good property doesn’t come cheap, and a good property buy is more than just a house – it’s also the location that counts. Yet everything comes at a price, and you may find that you have to sacrifice on space or an extra bedroom in order to buy a property in a more sought-after area. Don’t be disheartened – the challenge is to get into the property market and buy wisely. The last few years’ rapid growth in the property market seems set to continue, which should help you to afford a bigger, more valuable property as time progresses and property growth continues. But first, you have to make inroads into the market as a buyer!

Location is everything
If you wish to buy a property with good investment potential, the neighbourhood you buy in will be a key consideration. If you are looking to buy a family home, it may also be worth your while buying a house close to schools, crèches, etc.

Also attempt to find a home that is situated relatively close to your place of work, as traffic congestion and increasing commuting times can also influence a residential property’s price.

Read – and understand! – the fine print
Buying any property comes with a fair amount of administration. As a first-time homebuyer, you’ll need to familiarise yourself with the mortgage application process, so be sure to ask questions if you don’t understand something. Also have your mortgage contract documents and application forms explained to you in detail, and keep copies of all signed documents in a safe place.

Choose a home loan that best suits your needs
Unsure of which bond solution to choose? If you’re a first-time buyer, why not talk to one of our qualified home loan consultants. Who can advice you on how to meet the home loan requirements of first-time homebuyers.

Allow for interest rate increases
When calculating your budget, it is important to bear in mind that the prime interest rate will influence your monthly home loan instalments if your bond features a variable home loan rate. Unless you opt for a fixed rate home loan solution, any adjustments to the prime rate will directly affect your home loan interest rate.

If prime is lowered, your monthly instalments will in turn be lower, and visa versa. If it increases, however, your monthly instalments will increase by substantial amounts. As such, it is advisable to allow for potential interest rate hikes when calculating your budget – even before buying a house! Be sure to use our
bond calculators to see how big a loan you could qualify for, and also to assess how much you’ll need to allow for potential interest rate increases.

By choosing Mortgage Plus for a loan, you will get that continual service to make sure you are getting the best deal possible.

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

Need Your First Home Loan?

Buying your first home is exciting and a little scary at the same time. Not only are you faced with the challenge of finding the right property to become your first home, but you also need to know you’re getting the right first time buyer home loan.

When Should I Buy My First Home?

First home buyers often want to know when the best time to buy is going to be. The answer is simple when you have a professional home loans lender. There is no right or wrong time to buy your first home – only the time that suits you and your circumstances.

Many would-be investors will try to time the market and buy at the bottom of the real estate cycle, looking for a bargain, but the truth is it makes no difference when you buy. The right time is when you feel you’re ready to go out and buy your own home.

How Much Can I Borrow?

Before you go hunting for your new home, you should have a clear idea of exactly how much the banks will allow you to borrow. Once you understand how much borrowing power you have, learn how much the repayments will be and work out if this amount is affordable for your income level.

Knowing your borrowing capacity and your repayments ahead of time means you won’t be tempted to overspend or go hunting for houses that are outside your budget. Contact, our home loan Advisors they will be able to help you achieve your goals.

Which First Time Home Loan is best?

The South African mortgage market can be a confusing maze of options, home loan interest rates and bank jargon that can be difficult for a first home buyer to navigate successfully, but you don’t have to get through it on your own.

When it comes to finding the ‘best’ first mortgage for you, it’s important to remember that no two people have identical financial situations. Nobody else but you has your income, your expenses or your goals. This means that aiming at a mortgage that worked really well for a friend or family member of yours may be a terrible option for your own first home loan.

Always keep in mind that you should aim at finding a mortgage package that works best for your unique personal situation.

Will I Get a First Home Buyer’s Grant?

The First Time Home Owner’s Grant is a great incentive offered by your South African Banks to help you buy your first home.

Do I Need a Deposit to Buy My First Home?

Most South African banks have scaled back the availability of no deposit home loans and 100% home loans. In certain circumstances, it is possible to buy your first home without needing a substantial deposit and some banks even allow you to use your Pension fund as security for your first home purchase.

But there’s a another option exclusively from Mortgage Plus – We call it our Mortgage Deposit Loans.

This Personal Loan product is specifically structures for Property Buyers that wants to buy residential properties but do not have a cash deposit or transfer cost for the property they are buying.

The best way to check if you’re able to begin searching for your first home is to contact one of your professional mortgage advisors.

That will help you to understand your full borrowing capacity, you’ll know how much your repayments will be. Your Mortgage Plus Advisor  will make sure that you’re applying for the best possible first home loan to suit your needs and your goals.

No Deposit? …… No problem – check out our Mortgage Deposit Personal Loans

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