Personal Loan option – Home starter

This Personal Loan product is specifically structures for Property Buyers that wants to buy residential properties but do not have a cash deposit or transfer cost for the property they are buying.

Please Note: This Product is exclusively available to clients that apply for a new home loan through Mortgage Plus.

Documentation requirements:

• Homestarter application form from Mortgage Plus – Fully completed and signed by the Client and an amount up to R75 000 must be specified.
• Bond application form Mortgage Plus
• Copy of Bond Grant Quotation- This must be a formal grant by the financial institution. No offers will be accepted for it is not a definite approval.
• ID – South African 13 digit bar coded ID
• Payslip – Last payslip and may not have more than 2 garnishee orders. If a Client receives a basic plus commission / regular overtime / variable allowances, last 3 months payslips are needed; if earning commission only last 6 months payslips; if paid weekly full months history of payslips.
• Bank Statement – 1 full month statement which cannot be older than 7 days is required and must displaythe latest salary being electronically credited, opened for at least 2 months, be in the Client’s name and have no more than 2 unpaid items displayed. If a Client receives a basic plus commission/regular overtime/variable allowances, then a full 3 months is required and for Clients earning commission only a full 6 months is needed. We would suggest that the bank stamp validating the statements not be older than 4 calendar days so it gives sufficient time with Credit before becoming outdated.

Interest rate:

• The interest rate you pay on your Loan is not fixed and will be affected by fluctuations in the prime rate.
• Interest payable is calculated on your daily outstanding balance but charged to your account once a month.
• The interest rate will vary based on your credit risk, term of loan and prime interest rates.

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

Property investors are making use of deposit guarantees as an alternative to cash deposits.

In a statement on Tuesday, Lombard Insurance said property investors were understandably loath to liquidate their investments merely to finance the deposit on a property purchase.

This had resulted in alternatives and interim finance mechanisms such as deposit guarantees which replaced the cash deposit required between signing a sale agreement and the payment of a purchase price of a property.

According to Antony Solomon of Lombard Insurance, one of the benefits of deposit guarantees was the ability they afforded residential buyers to purchase homes immediately after the sale of existing properties.

“Buyers don’t have to wait for the proceeds of the sales before they can put down deposits on their new properties.”

Deposit guarantees were also tax efficient.

“The interest earned on cash deposits is not only generally quite low but is also subject to income tax, making the net return to the purchaser very paltry.

“Conversely, the cost of deposit guarantees is, in the case of a purchase for business purposes such as a rental enterprise, a tax deductable cost in the production of income.”

He said it was also, in all circumstance including private home purchases, a tax deductable expense when calculating capital gains liability.

“By offering astute property buyers an intelligent and cost-effective deposit funding alternative, we believe deposit guarantees will help to attract more qualified and serious buyers to the property market.” - Sapa

CONTACT US

To 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