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Mortgage Advice – Let’s Bond Together Let us bond together “Let’s bond together” … Purchasing land or a property is a great investment and it is important that you have an understanding of the South African bond market and how the home loan industry works. For instance, the words “bond”, “home loan” and “mortgage” are used interchangeably in the market to describe a process by which your home is pledged as security or collateral in return for the finance to pay for it. The four major lenders in South Africa are First National Bank, Absa Bank, Nedbank and Standard Bank. These financial institutions predominantly offer their home loan products through specialized mortgage brokers or bond originators. This enables banks to offer their prospective clients dedicated and accurate bond advice and currently around 80% of all home loan business is conducted through bond origination companies like Mortgage Plus – 011 327 4489

5 Great Reasons to use a Bond Originator:

• Secure approvals: better chance of approval by submitting to multiple lenders
• Get the system to work for you: take advantage of the fact that each bank has different credit criteria, deposit requirements, documentation requirements, interest rates and turn-around times
• Expert positioning: prepare, motivate and package the application for the best chance of approval
• Best interest rates: banks compete for every loan application ensuring you get the best deal
• Simultaneous submission: direct interface to lenders systems allowing simultaneous submission of applications to multiple lenders

How the Bond process works:

If you are thinking about a new purchase it helps to understand the options available to you which ultimately saves you money. STEP 1: House hunting STEP 2: Sign offer to purchase. STEP 3: Seller accepts offer. STEP 4: Contact MORTGAGE PLUS. STEP 5: Financial Institution will confirm requirements. STEP 6: Property Valuation done by bank. STEP 7: Decision taken by bank. STEP 8: Final approval. (Letter of Grant) STEP 9: Registration attorney instructed to attend to the registration. STEP 10: Customer to sign documents at 2 sets of attorneys. STEP 11: Home loan registered in buyers name at Deeds Office. STEP 12: First monthly instalment due within 30 days of registration date STEP 14: Get your CASH BACK BONUS from Mortgage Plus. STEP 13: Title deed & sent from attorney to Bank for safekeeping. Many potential property buyers are currently in the process of shopping around for homes throughout South Africa. Should you require a New Home Loan or First time buyer home loan then kindly contact me to discuss.

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

An individual

Any person over the age of 18. See Minor

Two or more individuals not married

Any natural persons over the age of 21 years who wish to purchase a property in their joint names.
Married couple out of community of property

This is where both partners have full contractual power. The bond can be in joint names, or either name, provided that the applicant qualifies in their individual capacity.
In community of property

The bond must be registered in joint names of both partners.
Foreign matrimonial property system

The contractual capacities of the marriage partners are viewed according to the law of the country where they were married.

Customary union (Cultural Law)

This is not recognized as a legal marriage. A woman may purchase property in her own right – except for a Zulu woman who is married in accordance with Section 46 of the Natal Code of Zulu Law. This states that she is unable to enter into a contract without her husband’s consent. The bond may be in joint names, or in either name, provided the applicant qualifies in their own capacity.
Customary union (Religious – Hindu, Muslim, ect)

This is not recognized as a legal marriage unless a magistrate or commissioner conducted the marriage. If it is not legal then the bond may be in joint names or either name, provided that the applicant qualifies in their individual capacity. If it is legal, then the bond must comply with the terms laid down in the marriage contract. The registering attorney will ensure that all documents are signed in accordance with the Matrimonial Property Act.
Minor

An unmarried person younger than 21 years must obtain consent from the Supreme Court in terms of Section 80 of the Administration of Estates Act 60 of 1965 before buying property.

Contract worker or worker seconded or recruited from abroad

Such a worker can buy a property only after being placed on record with the exchange control authorities.

Official or employee in the public sector

An applicant who qualifies for the Government Guarantee Scheme and is a government employee – for example, a member of the police or military – may buy property as a civil servant.

Close corporation

A close corporation can buy a property provided that Section 40 of the Close Corporations Act will not be contravened. This sets out the conditions under which a close corporation may finance the purchase of a member’s interest. The close corporation should be aware of the implications of Capital Gains Tax.

Company (PTY)

A company may buy a property provided that Section 38 of the Companies Act will not be contravened. This prohibits a company from financing the purchase of its own shares.
Informal body

Recognised churches and associations may buy a property.

Trusts

Inter vivo and testamentary trusts qualify to register a property in their name.

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