Next Home Mortgage

• Are you upgrading or downsizing your home?
• Do you need to relocate because of the children’s schooling, or your job?
• Are you simply looking for a change?

There are three main ways to purchase your next home. The most common way is to get a traditional home loan by selling your current home and paying out the existing loan then purchasing the new home and obtaining a new home loan.  You can also look at keeping your existing mortgage if it’s portable, or refinancing to a Home Loan that is portable, or you can get a bridging loan.

Over time, the home loan market changes as competition for your business increases. New Features and ways to save money are introduced to help the lenders win your business.Mortgage Plus Finance understands all of the options available to you in the current market.

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

If you are considering taking a new home loan, you should also take into account the factors that influence the rates. There are some factors that are within your control.

New Home Loan: Factors to Consider

One should consider the following factors while applying for a new home loan:

Debt to Income Ratio: Before taking a decision on the amount of loan to be extended, every lender calculates your debt to income ratio. This is calculated by taking into account your monthly debts and income. A high debt to income ratio means that a considerable part of your income is going towards the payment of your existing debts, which signifies high risk for lenders. If you have a high ratio then the interest rate is likely to be higher.

Payment History: You can improve your chances of getting a good interest rate by paying your bills on time. These could be credit card bills or car or rent payments. A single late payment can affect your credit history.

Property Type: The type of home loan that you are entitled to is influenced by the kind of property against which you take the loan. Property may be a single family home, multi family home or condominium. The rates are lower for properties that bear lesser risk.

Loan Amount versus Property Value: The lender will compare the loan amount with the value of the property to calculate the LTV (loan to value) ratio. If this ratio is high your mortgage will carry higher risk, which will end up in a high interest rate on your home loan.

Loan Amount and Duration: The higher the loan amount, the higher will be the interest rate. Moreover, the longer the duration of the loan, the lower will be the rate of interest on your home loan.

Closing Costs: If you do not wish to pay all the closing costs, then you can expect to pay higher interest rates. This is done to compensate for the closing costs.

Down Payment and Points: You can get good interest rates by paying down at least 10% of the loan. You can also pay points to lower the interest rates by paying your principal and lowering your monthly payments.

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