Why do I need a mortgage originator?

Because your home purchase is probably, the most expensive one you will make in your life, the home loan itself is an important financial decision and the benefit to be gained from making a correct choice can amount to savings of hundreds of thousands of rands over the life of the loan.

Is choosing a home loan really that difficult?

All home loans differ from one another and each bank may evaluate your worth differently, so it is not as simple as shopping around for what appears to be the best rate in the market. Each bank has varying credit policies that cater for different claim circumstances. Mortgage Plus has knowledge of all banks’ products and will advise you on the type of loan that best suits you. They will negotiate with the banks on your behalf to get the best rate for that product.

I’ve heard that this service is free – how so?

Indeed, the service is free for the homebuyer. Mortgage Plus receives a fee from the bank for doing the groundwork on the loan and thereby reducing the bank’s costs. The bank is, by law, not allowed to add this cost to the amount of the loan, so you will not pay more than, if you approached the bank yourself.

Isn’t it easier to just get my home loan from my regular bank?

Your bank will encourage you to keep all your finances under one roof, so to speak – but at what cost? Because Mortgage Plus originates loans for all major banks, this offers you, the buyer choice and by being able to compare various products and rate offers, you get the best home loan deal in the end.

How do I know if I’m getting good advice?

The professionalism of the originator will quickly become evident, so make sure you are dealing with someone who can explain their recommendation clearly and are credible. Check their track record and only deal with an originator that is a member of the National Association of Mortgage Originators (NAMO).

Must I accept any of the packages they offer?

No – you have not entered into an agreement with the originator, other than to give them the information they need to get quotations from the banks. You still make the final decision whether or not to accept their offer.

Once I’ve accepted their recommendation, what happens?

Mortgage Plus will submit your applications together with the relevant documentation, such as copies of your ID and salary advice, to the bank agreed on and advise you once your loan has been approved. A good originator should also keep you informed all the way through to registration and liaise with the conveyancing attorney on the loan’s progress.

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

The affordable sector is the lynchpin of the residential property market in the aftermath of the recession and this is unlikely to change in the near- to medium-term.

It is in this vein that First National Bank (FNB) has set a target of financing 100,000 homes in the affordable sector by 2012.

FNB has financed more than 76,000 affordable housing units since the establishment of its affordable housing finance business unit in 2002. The bank aims to finance more than 10,000 housing units by end June 2011 and an additional 15,000 by end June 2012.

Despite the economic downturn and a tough recession, FNB Housing Finance managed to grow its profit from end user finance in this market by 84% in the 2009/2010 financial year.

“The bottom line is that we focused on the quality of the loans granted than on the quantity. This enabled us to endure the hardships of the recession and limit our defaults within acceptable levels,” says Marius Marais, CEO of FNB Housing Finance.

Despite huge demand for housing in South Africa there is still an undersupply in the affordable housing market space (currently defined as houses in the R180k to R500k price range).

FNB Housing Finance has been working with government and other stakeholders to come up with solutions to address the housing backlog and increase housing delivery.

“We support government’s drive of developing an integrated human settlement. To us it is more than providing end-user finance to our customers, it is also about enabling and creating sustainable communities through the provision of quality affordable housing and to achieve this it is crucial for all stakeholders to work closely together and share best practises for the benefit of our country,” says Marais.

“As we move out of a recession, and stability returns to the property market, we see tremendous opportunities,” adds Marais.

“The rapid growth of our cities, and the increasing demand for affordable shelter, means an ongoing demand for affordable housing. We intend to hold onto our position as a major player in that space, and to ensure responsible consumers have access to the best possible housing finance solution,” he concludes.

Price growth in the affordable category has also proven that there is great scope for finance and supply in this market, although the growth in this category has also fallen victim to the decelerating trend. According to Absa’s House Price Index for August the value of small houses (80-140sqm) increased by a nominal 28,3% y/y in August, slightly down from a revised 28,7% y/y in July. In real terms, the value of a small house was up by 24,1% y/y in July, after rising by 23% y/y in June.

This is still far above the average nominal value of small, medium and large houses, which increased by a weighted 7,1% in August, down from a revised growth rate of 9,4% y/y in July.

Jacques du Toit, property strategist at Absa, told Property24 that affordability has remained one of the key factors in the property market, even with interest rates at their lowest level in three decades, and it has all to do with the financial position of the consumer.

“The household sector is still struggling with high levels of debt, with data released by the National Credit Regulator for the first quarter (Q1) of the year showing that many consumers are still battling with debt. Some further job losses in the first half of the year did not really help consumers to recover financially while consumer confidence has increased in early 2010, but has since remained unchanged up to the third quarter (3Q) this year. Some relatively strong house price growth in the 1st half of the year, together with rising property rates and taxes, continued to keep the focus on affordability.

“We are of the opinion that affordability will remain an important issue in the housing market in future.”

He says demand for more affordable properties in each segment will be noticeable, with resultant influences on price trends.

Pam Golding Properties’ MD for the Western Cape metro region, Laurie Wener, says amid tough economic times and ongoing difficulty in obtaining mortgage finance, the importance of affordability in the housing market remains paramount. “Accessible pricing remains a major obstacle to many new entrants to the housing market, and is a crucial factor for many other types of buyers, including those downscaling for retirement or wishing to upgrade to meet the needs of a growing family.” – Eugene Brink

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing . 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