First time buyers

Well done! The decision to buy a home has proven to be one of the best made for millions of happy homeowners. It is a fact that property is a good investment, especially when you compare it to paying rent. It is important, however to enter the property market with a good understanding of how a property purchase works, what your costs will be and a respect that this is probably one of the largest financial commitments you will ever make.

Best advice

Your Mortgage Plus consultant will give you the best advice on all aspects of your home purchase, and most importantly on financing it, particularly when the banks differ in their approach to lending. We will help you understand the different interest rates, fees and charges, and terms and conditions available. We will explain to you the features of the different loans and why they are more suited to your individual requirements.

Important Pointers

• Know what you can afford and the costs
• Consolidate your finances
• Significant savings are possible by consolidating all your finances. As home loan rates are significantly lower than those for personal loans, overdrafts and credit cards, but significantly higher than savings and current account rates, it makes sense to consolidate everything into your home loan account.

Minimise your Mortgage
By effectively structuring your finances, you can significantly reduce your total home loan debt. Arranging part of your salary to be credited directly to the loan and making additional repayments on an ad hoc basis (like when you get a bonus) will have very beneficial results. By sticking to a workable monthly budget and avoiding unnecessary debt, you can repay your loan much more quickly and save vast amounts of interest. To find out how much interest you can save and how many years you can take off your loan, contact us today.

Example

You can settle your home loan in 5 years:

• Pay off an extra 1.2% of the original capital debt each month (R 1 200 per R 100 000)
• Adjust for interest rate changes when they occur
• Don’t access funds already paid off

Whilst this may mean some sacrifices, you will save a fortune in interest.

To qualify:

• Deposit of anything from 0 % – 30%
• First time home buyers only
• Have a clean credit record.
• Minimum loan amount of R 100 000
• Single or joint income must be minimum R 6 000 a month
• Your monthly bond repayments cannot exceed 30% of your gross monthly income. Also refer the National Credit Act stipulations.
• Permanent employment

You can take advantage of the option provided by certain banks of a 3-month holiday on home loan repayments.

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

Home Loans – What You Need to Know…

Home Loans: If you have never purchased a home before it can be a daunting proposition. In this economy it can be even more intimidating to think about trying to secure financing.

All that you seem to hear is that financing is very difficult if not impossible to secure these days. However, just because it is scary does not mean that it is impossible.

If you are ready to purchase a home there are ways to get financing, but it is essential that you take the time to learn about home loans before you start to apply for them.

Before you start to apply for home loans you will need to take a solid look at your credit report. To many banks your credit score and history is the most important thing that they look at when they are deciding whether you are a good financial risk.

Your credit report can be listed with one of three reporting agencies. You will want to check with Experian, TransUnion, and XDS independently to be sure that you do not have any inaccuracies or errors on your report.

If you do find a mistake this will take a few months to correct so you want to do this prior to your deadline for receiving financing.

You must also take a very serious look at your budget. You need to understand exactly what your financial situation is and how much you can afford. A safe equation to think about is to take your annual gross income.

Then multiply that by 2.5. This will give you an approximate home value that you can afford. However, be sure that you factor in your monthly expenses like utilities, car payments, and food costs to be sure that you are not overextending yourself.

One way to make purchasing a home a more possible purchase is by putting down a deposit. Banks like to see that you are wiling to invest your own cash into a property as well. This deposit payment will go towards covering different fees like initiation, valuation, and legal fees.

Coming up with a substantial deposit payment can be difficult. Most lenders will give you a 100% home loan, but some ask that potential homebuyers come up with a 10% deposit.

That being said there are many different government programs that can allow you to put down a smaller deposit or that will help guarantee your deposit.

So, before applying for a home loan, think about your situation and ask your mortgage broker for advice. www.mortgagepluscc.co.za

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