3 Steps to Successful Home Loans

Applying for home loans successfully has becoming increasingly difficult. With a worldwide financial downturn, the banks are clamping down to try to decrease their losses. With stricter procedures, many individuals are struggling to get the needed finance, either for buying a new property or a further bond on an existing property. So for individuals that need to apply for home loans, there are some steps they can take to increase their chances of an approval.

No. 1

Make sure you qualify

This is especially important if you are purchasing a new property. First find out what amount you can qualify for on a home loan. Stay within this amount. A guaranteed way to have your application declined is by applying for more than you qualify for. The banks are not lenient with regards qualifying clients, and will not consider your application further.

• Affordability Calculator

• Bond Status Calculator

• Increased Installments Calculator

• Minimum Income Calculator

• Monthly Payments Calculator

No. 2

Home loans Affordability

Go through your budget and see how much you can afford to pay on a bond. And be reasonable when doing this. If you can’t prove to the bank that you will be able to afford this new expense, they will say no. By granting home loans their clients can’t afford, the bank is running a big risk of not getting their money back. This is a risk they are not willing to take.

No. 3

Have a good credit/payment profile

Your credit profile is the first thing the bank will look at. From how you have serviced your existing commitments they will draw conclusions, and decide whether they feel you will meet your new commitments. So make your full payments on time. Too much debt can also affect your application. So if you can pay something off, this can help with both your exposure and affordability.

Approved home loans are not something impossible. With a bit of planning and common sense you are very likely to be successful with your application.

If you feel like it is too much to tackle an application on your own, there are professional home loan consultants that can assist you.

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

Further Loans

You can use the value in your property to finance renovations, a new car or to pay off other debt. It is one of the cheapest forms of borrowing.

Further loans or Advances against your current home loan may be used for:

• Alterations or additions to your home or property

• Finance for purchase of other assets e.g. Motor Vehicle

• Paying for Family holidays and education fees

The banks have different requirements, but the general requirements are:

• Minimum Loan amount of R100,000.00 (ABSA R50,000.00)

• Building Loan Requirements ( See Documentation Required )

• There must be sufficient value in your property

• The Affordability calculations will be applied to the loan amount

Further Advance

A further advance against your existing property is one of the two ways to obtain further finance. This is when you

register a further bond over the property in order to obtain additional funds. This is because the value of the property

market and your specific property has possibly increased over time.

Re-advance

A readvance from your existing home loan is the second way to obtain further finance. This is when you have repaid a

part of your home loan and the funds are made available without having to register a further bond over the property.

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