There are so many home loan choices available; it may be hard to identify the bond that is right for you. All banks provide a home loan for anywhere from 10 to 30 years, repayable monthly at an interest rate margin lower than prime rate. All of them look so attractive – how do you make a choice?

Everyone has different needs and circumstances and everyone requires unique solutions. You need to choose a bond that best suits your needs and situation and that best meets your requirements.

Each application will be looked at on merit. Your credit history and banking record plays a big role when applying for a homeloan. Debit orders are the preferred way of repayment, but you can negotiate with your bank if this is not the most convenient way for you to pay.

Life insurance is compulsory on the smaller bonds under R200 000 and you do not need to purchase life insurance from the bank, you simply have to prove that you are covered.

As a first time homebuyer, you will qualify for a 100 percent bond. You can adjust your repayment per month at any bank to pay off your homeloan faster.

Different banks – different options

ABSA offers Multiplan, which allows the freedom to structure your homeloan account into separate accounts with their own terms and conditions. All accounts will be managed through a single account.

First National Bank rewards their clients with eBucks on all homeloan products. This is an attractive option for homebuyers, as they will receive some return on their investment – sooner than usual.

Standard Bank offers Business Mortgage for financing residential properties, which have been converted for business use.

Nedbank offers an investment product called Buy to Let. This product adds rent to your income so you can borrow more and invest in more property.

There are so many banks and each bank has its own set of products for homebuyers. It is important to know the different products (and hidden small print!) so it is best to go to a bond originator who is familiar with different banks and their products. The originator can guide you and help you make the choice that is best for you and your circumstances.

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

INTRODUCTION

A creditor who advances money to a debtor usually requires the debtor to provide some form of security for the repayment of the debt. Two main forms of security can be distinguished, namely:

Personal security: An individual can bind himself/herself personally as surety for the repayment of another’s debt in the event of non-payment by the debtor himself. Should the debtor not pay, the surety will be called upon to pay on behalf of the debtor.

Real security: A borrower (Mortgagor) can offer his immovable property to a lender (Mortgagee) as security for the repayment of a debt. The Mortgagee (normally a bank) will cause a mortgage bond to be registered over the immovable property as security for the fulfilment of the Mortgagor’s obligations.

WHO IS THE MORTGAGOR AND WHO IS THE MORTGAGEE?

The Mortgagor is the individual, company, close corporation, partnership or trust who has borrowed money to finance the purchase of an immovable property and mortgages his/her property as security for repayment of the loan.

The Mortgagee is the Bank, Financial institution, employer or individual who lends the money to the Mortgagor and in whose favour the mortgage bond is registered.

WHAT IS A MORTGAGE BOND?

A mortgage bond is based on an agreement in terms of which the Mortgagor borrows money from the Mortgagee and aggresses to pass a mortgage bond over a specific immovable property in favour of the Mortgagee as security to the Mortgagee for the repayment of money.

WHAT PROPERTY IS CAPABLE OF BEING MORTGAGED?

All immovable property, improved or unimproved, which is registerable in a Deeds Office can be mortgaged. This includes a flat as well, if it is held under sectional title and is owned by the Mortgagor.

WHAT ARE THE CONSEQUENCES OF FAILURE TO PAY INSTALMENTS?

Foreclosure is the term describing the procedure followed in this event, if the Mortgagor fails to fulfil his/her obligations towards the Mortgagee, the latter can enforce his/her rights against the Mortgagor by calling up the bond and obtaining a Court Order which authorizes a sale in execution after due notice has been given to the Mortgagor. A Bank therefore cannot immediately cause a property to be sold in execution merely because a Mortgagor failed to pay an instalment.

WHAT IS THE “ADDITIONAL SUM” AS PRESCRIBED IN THE MORTGAGE BOND?

The mortgage bond secures not only the principal obligation of the debtor, but also ancillary expenses which the Mortgagor may incur in respect of the property such as insurance, maintenance expenses, the legal cost of pursuing the claim and arrear interest. Thus in a bond document provision is made for an “additional sum” over and above the amount borrowed, being the amount intended to cover the aforementioned items in the event of the Mortgagee having to foreclose on the bond.

By choosing Mortgage Plus for a mortgage bond, 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