What are the benefits of using Mortgage Plus Bond Originators ?

By using our services, you avoid the hassle of going from bank to bank dealing with tedious and repetitive paperwork and not knowing if you are getting the best deal. With Mortgage Plus Bond Originators, your personal property finance consultant is able to advise as to the most appropriate home loan options to suit your individual needs and source competitive interest rates from all the major banks. We handle the entire application process on your behalf.

Are there any costs for using Mortgage Plus Bond Originators ?

No, there are no costs for using our service as the lenders pay Mortgage Plus an outsourcing fee to complete the application process. “Applicable only to ABSA, NEDBANK, STD BANK and FNB”

Is there any obligation to accept a home loan sourced by Mortgage Plus Bond Originators ?

No, there is no obligation to accept any approved home loan that we have sourced on your behalf. “Applicable only to ABSA, NEDBANK, STD BANK and FNB”

When will I need to contact a property finance consultant ?

You don’t have to contact us, as your dedicated Mortgage Plus Bond Originators property finance consultant will contact you should we require any further information or to expedite your home loan approval.

How is Mortgage Plus Bond Originators different to other home loan brokers ?

Mortgage Plus is only one of a few full-service origination companies in South Africa, capable of handling the entire home loan approval process, with a national infrastructure and proprietary software able to automate the application transaction making home loan approval as convenient as possible.

How will I be able to track my application status ?

Your dedicated property finance consultant will keep you informed throughout the entire process and will be available at your convenience should you have any questions.

How long will it take to approve my home loan ?

Normally, applications are approved within 4 days, assuming we have received all the information required.

If I have obtained a pre-approval through Mortgage Plus Bond Originators, how will I obtain a full loan grant after I purchase a home ?

All you have to do is inform your dedicated Mortgage Plus consultant and he/she will complete the application process on your behalf.

What if I already have a pre-approval from another lender ?

We can complete the application process on your behalf, or we can try to source a competitive rate from another lender.

After I apply for a loan online, what should I expect ?

Once your application is received, you will receive notification of receipt and that your application has been submitted. Within 24 hours you should receive an email or a call to inform you whether your loan has been approved in principal, or further documentation is required. If approved, you will also be notified of the interest rate pertaining to your approved loan.

Do I have to apply online ?

You can either apply online, or call us and an experienced Mortgage Plus Property finance consultant will contact you at your convenience.

Who will see my application ?

Only those parties involved in processing your home loan will see your application details.

Are there any hidden fees ?

No, there are no costs for using our service, as the lenders pay Mortgage Plus Bond Originators an outsourcing fee to complete the application process. “Applicable only to ABSA, NEDBANK, STD BANK and FNB”

Will I get the same interest rates as if I applied through the bank directly ?

Yes, amongst other things, your credit profile, affordability, and loan to value ratio determine your interest rate on your home loan. All these details are captured into the lenders credit scoring models and your interest rate is calculated. Whether you apply through Mortgage Plus Bond Originators or through the bank directly, the same credit scoring model is used to determine the interest rate applicable to your home loan. However, our experienced home loan consultants are able to motivate further on your behalf.

Can I purchase a property in South Africa if I am a non-resident?

Non-residents may purchase property in South Africa but in terms of Exchange Control Regulation 3 1 (f) they may not be granted any financial assistance e.g. Bond. However, the South African Reserve bank will consider requests by Non-Residents for bond facilities not exceeding 100% of his/her borrowing base.

The ‘Borrowing Base” of a Non-Resident individual is the sum introduced into South Africa to fund the purchase of a property e.g
“A non-resident wishes to purchase a property in South Africa for R600,000.00. Provided R300 000.00 is introduced into South Africa to effect the purchase he / she would be able to apply to the South African Reserve bank for permission to avail himself of a bond of R300 000.00. In other words 50% mortgage loans are available to Non-Residents. However, it must also be borne in mind that the banks will only grant a bond of 50% of their valuation of the property, which may in some instances not equal 50% of the purchase price.

All requests of this nature must be routed through a commercial bank and not directly with the South African reserve bank.

Proof must be provided that the funds physically came into the country (which can be done by the Transferring / Conveyancing Attorney), so that when the property is sold, the Deposit plus profit can be released. The title deed will be endorsed “non-res”.

The Non-resident does not have to open a banking account in SA, although some banks insist, as he/she can transfer funds directly from his overseas account into his Mortgage Account. If an account is to be opened, especially if an access facility is required for the capital paid off, then the non-resident is required to obtain an original letter of credibility from his bankers.

As Exchange control is a complex subject, Non Residents are advised to consult with our Mortgage Plus Bond Originators property finance consultants on this issue.

If I am a South African Resident, working abroad, can I apply for bond finance to purchase a property in SA?

Yes, if you are a SA resident, working abroad, an 80% mortgage Bond can be obtained. Most banks will look at granting up to an 80% loan but each application will be looked at on individual merit. Some clients have been granted 100% finance but in exceptional circumstances.

You must only be living abroad temporarily and must have plans to return to South Africa. Moreover, an application to emigrate must not have been made, nor should you have surrendered your permanent residency status in South Africa. Please speak to one of our experienced Mortgage Plus Bond Originators property finance consultants to assist you in this regard.

For further information contact Morne Prinsloo on 011 327 4489 or email morne@mortgagepluscc.co.za

If you would like to know more about your home loan services and mortgage requirements please phone the Mortgage Plus Head Office on:

Attached please find the Home Loan Application Form * - Short Home Loan Application Form

0861.111.193

info@mortgagepluscc.co.za

www.mortgagepluscc.co.za

TOP TEN TIPS FOR FIRST-TIME HOME BUYERS

ALWAYS CHECK THE FINE PRINT AND MAKE SURE YOU WORK WITH THE BEST PROFESSIONALS

The real estate profession is today attracting the very best professionals, joining the industry from all backgrounds. Legal people, entrepreneurs, doctors, university professors and others realise that property is very much part of most people’s lives.

With a recent slow-down in the property market due to tightened environment created by the National Credit Act, it has become vital to consult the best real estate professional and to know what to be expecting in terms of contractual issues if you are a first time buyer.

All humans have basic needs, as philosopher Abraham Maslow established in the 1950s in his well-known hierarchy of needs. And the need for good shelter is chief amongst these, Maslow found.

With this in mind, says Jeanne van Jaarsveldt, “it is always important to point out that there are certain important things that first-time home-buyers should be aware of and in our continued search to deliver the best service in the real estate industry in South Africa, we thought it well to formulate a standardised list of tips.”

Most of the tips revolve around legal issues and it is no surprise that a growing number of legal professionals are joining real estate.

TIP 1: CONTRACTS: First time home buyers are involved in entering into written contracts, firstly between the seller of the property and the home buyer and secondly between the home buyer and a financial institution who gives finance in respect to of the property.

TIP 2: SPOUSAL CONTRACTS: There are then certain contractual obligations which arise between the seller and the buyer of the property, and they include the status of the parties: If it is a married couple, married in community of property, both spouses must sign the contract or if one only signs it, then with the written consent of the other spouse. Where parties are married out of community of property, they are two separate persons with separate estates, meaning if only one of them buys a property, then only that spouse needs to sign any document, but if they both purchase a property, in equal shares, then both of them will be required to sign all documents.

TIP 3: BONDS AND CONTRACTS: If the home buyer has to obtain bond finance, the contract will normally stipulate a time period within which to apply to a financial institution and obtain the necessary bond finance in terms of the contract.  If the application for bond finance is unsuccessful, then there exists no contract between the buyer and the seller, but if bond finance is obtained within the stipulated time period, a valid and binding contract comes into existence between the buyer and the seller.  The buyer cannot after this date simply resile from or cancel the contract without any legal grounds.  If the buyer does, then the seller has a choice either to hold the buyer to the contract and enforce it in a court of law or cancel the contract and claim damages. Another implication might be that the buyer becomes personally liable for the payment of estate agent commission, which is generally the responsibility of the seller who gave the mandate to the estate agent.

TIP 4: OCCUPATION OF PROPERTY: If the buyer takes occupation of the property before registration, it is common for the parties to agree that occupational rental be paid until the date of registration.  Home buyers sometimes find defects in the property which they did not see when they inspected the property the first time and then withhold rental as a condition that the defects be rectified.  This is a breach of contract, which allows the seller to cancel the contract and evict the purchaser if he does not remedy his breach within a notice period specified in the contract.

TIP 5: LEGAL REPRESENTATIVES: Most first time buyers are confused when two attorney firms are involved in the transfer process, the transfer attorney as well as a bond attorney if a transfer attorney is not attending to both the transfer and bond registration.  This situation might give the impression that more costs are involved, which may be true to the extent that if one firm is attending to both the transfer and bond registration, then the costs may be negotiated with such firm to the advantage of the home buyer.  In any event, irrespective if one or two firms are involved, there is costs payable for both the transfer and bond registration.

TIP 6: TRANSFER DUTIES: No transfer duty is payable if the purchase price is less than R600 000.00.  First time buyers are sometimes under the impression that this also means that no costs are payable, which is not the case.  Transfer duty is a tax exemption, while transfer costs does not form part of it, and are costs incidental to the transfer process, for example attorney fees and deeds office fees.

TIP 7: BANK AND BANK OMBUDSMAN TIPS: Home buyers should be under no illusion about a bank’s valuation for bond purposes, which is not an indication of the real value of the property, but simply an administrative act to ensure that there is security in the property for the bank.

The ombudsman for Banking Services gives the following hints on their website, www.obssa.co.za in respect of a mortgage bond: 1.) When building a home, do not sign consent to progress payments before you are satisfied with the work done.  2.) Obtain expert advice necessary and do not rely on the bank’s assessor. 3.) If you are buying a renovated or older home, it is advisable to obtain the services of an expert to inspect the building.  You cannot rely on the bank assessor to do this for you. 4.) Check with your bank what insurance cover you have in place on your bond account. 5.) Verify that you know the difference between House Owners Cover – which is insurance against damage to the property and Home Owners Life Cover / Life Protection Insurance – which is insurance against death of disability. 6.) In the case of a married couple or where the bond is registered in to parties’ names, ensure that those are insured. 7.) The onus is on the home consumer to ensure that the payments are made every month to the insurance company.

TIP 8: ESTATE AGENT UNDERTAKINGS: First time home buyers should be really careful not to fall into the hands of agents who make promises they can’t fulfill. The important thing to remember is that the sales contract is there to safeguard against exploitation.

TIP 9: BOND CONMEN: There are some conmen out there who tell buyers that they can still obtain bonds even if the client is blacklisted. This is probably more the case in areas where there are many first time buyers. It is strongly suggested that first time buyers should go to a registered bond originator like Mortgage Plus for assistance.

TIP 10: AVOID VERBAL AGREEMENTS: If a buyer or seller wants to set certain specific conditions in the sales contract, don’t rely on a verbal agreement. And don’t rush into signing a sales contract. Ensure that you are happy with every word written in the contract.

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