Get cracking if you want to get into the market.

Prospective homebuyers should accelerate their plans now if they still want to benefit from the “double positive” of low interest rates and low property prices.

“Home values have begun to rise in many parts of the country – and even though the average rate of growth will probably be below the rate of inflation for the next couple of years, this is really of little relevance to first-time buyers,” says Berry Everitt.

“What counts for them is that whichever home they want to buy already costs more than it did last year, and will cost even more next year. The longer they wait, the more difficult it is going to be to get on to that first rung of the property ladder.”

For one thing, he says, every increase in property prices means that the prospective buyer has either to earn more or increase the size of his deposit to qualify for a home loan, even if interest rates stay the same.

“For example, if a home now priced at R500 000 were to increase in value this year by just 5%, the amount needed for a 10% deposit would rise from R50 000 to R55 000. At the same time, the size of the 90% home loan required would rise from R450 000 to R495 000 and the prospective buyer would have to earn about R1 500 more a month to qualify.

Everitt says that while this is a simple example, the principles hold true right across the price spectrum.

“Then there’s the question of interest rates. If imported inflation due to the economic troubles in Europe and the rising oil price causes the Reserve Bank to raise the repo rate, banks will most likely raise their mortgage rates as well, and once again buyers will have to earn more to qualify for loans.

“If the base home loan rate were to rise just one percentage point from 9% to 10%, for example, the buyer of the R500 000 home in our example would immediately need to earn R1 000 a month more to qualify. What is more, the monthly repayment on the loan would rise by around R300, so there would be an ongoing long-term effect on the family’s finances.

In short, he says, if you are an aspirant homeowner, the sooner you put your plans into action, the better.

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

Home Loans available throughout South Africa

No matter where you are located in South Africa, whether it is in Johannesburg, Cape Town, Pretoria, Durban, or elsewhere; we will find you the best Home Loan available.  We do this through comparing home loan products between the financial institutions.  We consequently become a specialist in the field of home loans, building loans, further loans, bond switches and commercial loans with more and more people in South Africa coming to us for our expertly reliable home loan assistance services. It should be noted that Mortgage Plus is not a bank or an estate agency but is a bond originator who will assist you by starting the bond application process on your behalf.

Online home loans through Mortgage Plus

Why visit banks and waste time when you can use the internet to find the best Home Loan right at your fingertips?

Whether you have time during your work schedule, or need to search for the best Home Loans Online at home, we are here. With a presence on the web to provide our users with the best and latest information possible for example new regulations when it comes to bond originators as well as home finance and interest rates that may affect your decision when looking at a specific Home Loan and comparing it to others. This may also affect the bank that is chose, whether it be ABSA Home Loans, Standard Bank Home Loans, Nedbank Home Loan, First National Bank home loans or a variety of others.

We are experts when it comes to home loan finance in South Africa and have specialists standing by, just for this very purpose.

Mortgage Plus will find the right deal for you. Guaranteed!

Please Note:

We have a Personal Loan product that we specifically structures for Property Buyers who wants to buy residential properties but do not have a cash deposit or transfer cost for the property they are buying. “This Product is exclusively available to clients that apply for a new home loan through Mortgage Plus Bond Originators”

Mortgage Plus Home Loan Calculators :

Affordability Calculator, Bond Status Calculator, Increased Instalments Calculator , Minimum Income Calculator , Monthly Payments Calculator

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