Looking For The Best Mortgages in South Africa?

There are very few people who can afford to buy a home outright and this is why home loans are so important. If you are considering purchasing a property you will need to ensure that you understand what homes loans are and the steps you need to take to ensure that you get the best possible deal when applying for one of them.

The Size of your Home Loan

Before you start searching for homes in your area you will need to see what type of loan you are eligible for. Banks will usually approve you for a loan by taking 30% of your income into account in order to determine whether your salary is large enough to accommodate the repayments on the loan. The larger this income is, the more you will be eligible for. If you want to apply for a larger loan, you can always apply with your partner’s income for a joint loan.

Putting down a Deposit

When applying for home loans you will need to decide what type of loan you are going to apply for and whether you are going to put down a deposit. Banks in South Africa are now offering 100% loans which means there is no deposit required but you will probably be expected to pay a higher interest rate if you decide to choose this option.

What is a Loan Term?

A loan term is the period during which you will pay off the loan. The loan term will affect the interest you pay on your loan and it will determine the rate at which you will be expected to pay the loan off. The longer the loan term is, the lower your monthly premiums will be but you must remember that most banks will give you a maximum term of 30 years and even then you might need to apply for a life policy.

Choosing your Property

Once you have an idea concerning the amount you are eligible for you can then begin searching for your dream home. The location of this home should be carefully considered and you will need to take a few factors into account before you set your sights on a property, including the location of schools in the area, whether the property is close to your work and whether the location is safe and secure.

What do you need to apply for a Loan?

In order to apply for home loans you need to ensure that you meet all of the requirements as these can be quite strict. When applying for a loan you will need to be at least 21 years old, permanently employed for 6 months (or self employed for at least 2 years) and have a clean credit history. If you meet all of these criteria you will then need to be aware of the documents that will have to be submitted when you apply for the loan.

Bond Originator Lending a Helping Hand

Applying for a home loan can be a lengthy and difficult process but you can make this entire experience a simple and enjoyable one by contacting a bond originator that will help you through it. Bond originators will not only help you choose the right bond but they will also assist you in getting all of the correct paperwork in order to ensure that your application is submitted and approved without a delay.

Please contact us if you require any further information or would like to apply for finance:

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011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

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Johannesburg - More than a quarter of South Africans polled do not feel it is reasonable to have to put a deposit down when buying a home, said a survey by bond origination companies released on Tuesday.

The survey found 27% of respondents believed that a 100% bond was reasonable, while 42% said a deposit of 10% was reasonable.

Twelve percent of respondents said they believed a deposit of more than 30% was reasonable.

However, spokesperson Craig Deats said that while all banks had again begun offering 100% home loans, being able to put down a deposit made it more likely that a bond application would be approved.

“In the last few months, we have seen a significant increase in applications with low or no deposit.”

Although it was possible to have a home loan application approved on this basis, it was less likely as the introduction of the National Credit Act had resulted in more stringent lending criteria.

“Currently, the two major reasons for bond declines are having insufficient net disposable income to afford the bond repayments and a poor credit profile.”

Deats said besides improving the chances of having a home loan approved, a bigger deposit could result in a more favourable bond rate which would save the home owner interest over the term of the loan.

“As a home loan is paid back over a long period, generally between 20 and 25 years, even a small deduction in the interest rate on your bond can save you thousands in interest payments over time.”

Deats said some sellers were also more willing to accept an offer if the buyer had a deposit, as there was a higher likelihood that they would complete the sale.

Mortgage Plus : knows the business of mortgage bonds.

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