How can we help you – Property Finance – Mortgages?

Buying a home is admin-intensive and we will make sure you know exactly what documents are required for your new home loan or first time buyer loan and when to make the deal happen for you.

What assessment factors do the banks look at?

Affordability, credit worthiness, and property value come into play when we assess your application.

1. Affordability
At this stage, the bank will undertake a comprehensive assessment to determine if the loan you apply for is affordable to you. Your credit history will be put under the spotlight and details of your current credit facilities will be sourced from a credit bureau. This way we can independently verify the instalment amounts for credit cards, vehicle repayments, cellphone contracts and other facilities in your name. It’s a step that has your best interests at heart. We do what we can to ensure you only take on debt you can afford. Never be untruthful about your income or expenditure as it can lead to your application being rejected.

2. Credit worthiness
A good credit history counts in your favour when applying for your home loan. Credit bureaus do not only list defaults or judgments against you but also keep record of good conduct on your accounts. If your conduct shows you to be a good risk client, you may be offered a preferential interest rate. This can save you a substantial amount of money over the life of your home loan. Your application could be rejected if you are considered a high risk client based on your credit history.

3. Property valuation
It is the norm for the bank to conduct a valuation on the home you intend to purchase. This is to make sure the property offers sufficient security for the loan you request and is of the type the bank normally finances. The bank may require you to pay a deposit on certain properties.

On approval of your home loan application, we will contact you to discuss the most favourable rate received from the banks as well as other important details and the terms of the loan. At this stage, I will advise your estate agent that the purchase of the property has been concluded and I will forward the necessary documentation to the attorneys to proceed with the registration of your bond and transfer of the property into your name.  The attorneys will contact you to set up an appointment for the signing of these documents.

If you would like to speak to a Professional Mortgage Specialist about your lending requirements, please phone Mortgage Plus Bond Originators on:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

If you are considering taking a new home loan, you should also take into account the factors that influence the rates. There are some factors that are within your control.

New Home Loan: Factors to Consider

One should consider the following factors while applying for a new home loan:

Debt to Income Ratio: Before taking a decision on the amount of loan to be extended, every lender calculates your debt to income ratio. This is calculated by taking into account your monthly debts and income. A high debt to income ratio means that a considerable part of your income is going towards the payment of your existing debts, which signifies high risk for lenders. If you have a high ratio then the interest rate is likely to be higher.

Payment History: You can improve your chances of getting a good interest rate by paying your bills on time. These could be credit card bills or car or rent payments. A single late payment can affect your credit history.

Property Type: The type of home loan that you are entitled to is influenced by the kind of property against which you take the loan. Property may be a single family home, multi family home or condominium. The rates are lower for properties that bear lesser risk.

Loan Amount versus Property Value: The lender will compare the loan amount with the value of the property to calculate the LTV (loan to value) ratio. If this ratio is high your mortgage will carry higher risk, which will end up in a high interest rate on your home loan.

Loan Amount and Duration: The higher the loan amount, the higher will be the interest rate. Moreover, the longer the duration of the loan, the lower will be the rate of interest on your home loan.

Closing Costs: If you do not wish to pay all the closing costs, then you can expect to pay higher interest rates. This is done to compensate for the closing costs.

Down Payment and Points: You can get good interest rates by paying down at least 10% of the loan. You can also pay points to lower the interest rates by paying your principal and lowering your monthly payments.

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