Purchasing a home and registering a bond can be quite confusing. However with Mortgage Plus, your consultant will simplify the process, keeping you informed throughout the property transfer and will be on hand to give you professional advice until the day you move into your new home.

Here are some pointers that describe the house buying process and your involvement in it, as well as give you insight into some of the behind the scenes activities.

Assess your financial position

As buying, a property can be the biggest purchase you make in your lifetime, assess your financial position first, and make sure you are ready for this commitment.

See how much you can afford

It’s very important to know exactly what you can afford before you start house hunting. Mortgage Plus can offer you a free affordability assessment. We will also explain all the costs involved in buying a home, including up-front payments, monthly repayments and any other costs that may occur as a part of the property transaction. Follow the guide on the Cost of Financing a Home page to obtain an understanding of the costs involved in buying a home. It is important as the new National Credit Act wants to ensure you do not overspend and we can assist with a basic guideline on how to calculate the loan amount you can afford to repay monthly.

Choose an agent and view properties

Register with a few agents to ensure you are exposed to a variety of properties in your chosen area. Visit a number of homes before you make a decision. A Mortgage Plus consultant can assist you in finding a suitable agent in your area and will explain the different ownership options to you.

Sign an Offer to Purchase

Once you have decided on a property and signed an Offer to Purchase and the seller has accepted the offer and signed the document, the offer becomes binding by law and the transfer process can begin. There is however a cooling off period of 5 days for properties which are sold for less than R 250 000, to allow you a grace period to review the property and the costs involved.

Obtain finance through Mortgage Plus

Your Mortgage Plus consultant will submit your application and the relevant FICA documents to one or more banks, which will assess the value of the property as well as your financial position. The bank will apply the credit assessment criteria as required by the National Credit Act and the financial risk criteria as stipulated in the bank’s terms and conditions for lending.

Your Mortgage Plus consultant will then advise you of the offers they have obtained for interest rate and available loan amount, and will give you an informed recommendation.

Pay your deposit

Once you have chosen a bank, you will then (in most cases) be expected to pay your deposit to the attorneys dealing with the registration of your bond.

The property transfer begins

The bank will grant the loan and instruct the attorneys to start with the registration of the bond and transfer of the property into your name, as well as the cancellation of the seller’s bond. They will also obtain the title deeds and the transfer and tax clearance certificates. Registration, transfer and cancellation take place simultaneously and require the services of up to three different specialised attorneys.

Transfer documents signed and fees paid

The attorneys will complete the necessary administration. You and the seller will need to sign the transfer documents. At this time you will be expected to pay the transfer costs, registration fees and an estimated share of the rates.

Registration documents are lodged at the Deeds Office. This is where the property will be registered in your name. Congratulations, the property now belongs to you!

Home loan comes into effect

Once you have received notification of the registration, your bank will pay the seller, or their bank, and your home loan will come into effect. The bank will notify you of this in writing and inform you when your first monthly instalment is due.

Taking occupation

You may take occupation as per the date agreed on your sales agreement. If you are already occupying the property, you will no longer have to pay occupational rent.

Who is involved in the purchase of a property?

•             You (the buyer)

•             The seller

•             The estate agent

•             The transferring attorney (also known as the conveyancer) – appointed by the seller

•             The bond attorney – appointed by the bank granting the bond

•             The cancelling attorney – appointed by the seller’s bank, to cancel their bond

How can you speed things up?

•             Get pre-approval for your home loan

•             Provide all requested personal and financial information

•             Pay your deposit, if any, as well as bond and transfer costs on time

•             Sign all documents when requested

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

FNB Home Loans

The FNB home loans division has a step by step guide for individuals who is interested in buying or selling a home and information can be found on the FNB home loan website. FNB provides comprehensive information on everything about homes and caters for various groups of individuals under the FNB home loan umbrella including Traditional home loans, Smart bonds, Foreign choice and even Islamic finance home loans.

Traditional home loans

As with most major banks, FNB Traditional home loans include three options from which individuals can choose from including a Flexi facility where owners can access any surplus funds that they have paid into their home loan account within 24hours.

Owners also may apply for a re-advance if they have paid off an amount of their home loan over a period of time. The difference on the outstanding balance and that of the original loan can then be applied for and paid to the home owner.

The Future use feature allows for individuals to register a higher home loan account than the original purchase price of the property in order to cater for any future use of the funds such as for renovations.

Smart bonds

Smart bonds caters for individuals who earn R15000 or less per month in household income, and applicants who are approved need not pay a deposit as a 100% home loan will be provided.
Options of a 5 year fixed interest rate including a free home owner’s educational program are provided. Individuals applying for the Smart bond have to be South African citizens and have no judgments of more than R1000 against them.

Foreign Choice

FNB home loans caters for non-residential individuals not living in South Africa. Both South Africans and foreigners living abroad may apply for a home loan in order to purchase property in South Africa.
Individuals interested in Foreign choice home loans have to earn at least R15000 and have no judgments against them. A 50% cash deposit originating from foreign funds has to be paid. Additional charges are also levied.

Islamic finance home loans

Fairly new in South Africa, FNB Islamic finance home loans accommodates for the prohibited use of Riba (interest) under ‘Shari’ah’ (Islamic law)

This home loan caters for all individuals and is not restricted to Muslims only and a Wakalah contract is drawn up. A deposit will also be required and customers needs to be KYC compliant.

FNB home loans have made it possible for millions of individuals across the country to acquire homes from where they can raise their families or work from home. Interested individuals who want to apply for a FNB home loan of who needs more information should enquire at Mortgage Plus.

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