Its always a good idea to find out how much mortgage loan you qualify for before making an offer on an home , banks typically base this on your income and your current monthly expenditure which includes living expenses and debt repayments.

Before the implementation of the National Credit Act (NCA) in June 2007 banks and other mortgage lenders typically would calculate a bond based on payments of not more that 30% of your gross monthly income. In the case of a joint purchase they would look at 30% of the combined gross incomes.

This methodology wasn’t overly concerned with your other debts as the banks were comfortable that they had a first claim on any income and the debt was secured by a mortgage over immovable property.

Since the introduction of the NCA , banks and other mortgage lenders need to evaluate the prospective borrower’s ability to repay the proposed bond. They need to take into account all of your expenses and all your other debts before determining how much disposable income you have to service a bond. The result of this is that since the NCA was introduced people typically are qualifying for much lower mortgage amounts resulting in fewer home loans being granted sine June 2007.

Here are a few tips to maximise the amount you qualify for:

• Prepare a budget and evaluate your monthly expenditure, eliminate all non-essential and luxury items
• Always try and pay your debts on time , if you have a problem making a particular payment speak to your creditors
• Make a list of all you debt and rank your debt by interest rate starting with the highest to the lowest. Pay off the highest cost debt first by making additional payments, once it is settled move on to the next highest and so on.
• Because of the stricter mortgage lending requirements it is important that you have a substantial deposit when applying for a bond. If you don’t have any savings available consider setting up a savings/investment plan after settling any debts.
• Find ways to increase your income , ask your boss for a raise , work overtime or consider getting a second job – the more you earn the more bond you will qualify for
• Find out whether your employer offers a housing subsidy to employees
• Before applying for a home loan check your credit score to make sure that there are no negative items recorded against your profile. You don’t want the bank/mortgage lender to be the one to tell you about it. If there are any adverse comments take the necessary steps to correct it

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

Real Estate Investing made Easy

Making money in the real estate market has never been easier. Today property investing is available to anyone at any price range.

If you ever come across the opportunity to invest in real estate, do not let it slip away. Investing in real estate is most probably the best investment you can make with the highest return on your investment.

Investing in real estate is a way of securing your financial future. The first step to take is to do lots of research. Find out what you qualify for in terms of a mortgage loan. Make sure you can afford the monthly payments before buying or signing anything! Only you know what your living expenses really are so once you find out what you qualify for, figure out what you are able and willing to spend on such a mortgage loan.

Once you learn the basics of real estate, find a successful real estate investor to discuss your options with. You should be able to tell him/her what kind of property you would like to invest in, for instance a townhouse, office building or small apartment. Decide in which area/suburb/location you want to invest to narrow down the options.

Many people invest in real estate to make money, others invest in it for the sake of living in a new house and some buy to let. Whatever the reasons are for investing, it is always a good idea. All you need is knowledge, and understanding the sell-and-buy process. Then it is important to find a real estate agent that you can trust and some experts to help you along the way.

Real estate investment is not that hard, you just need to know what you are doing, and there are lots of books, websites and experts in the field that would assist you. Take that step, make that investment, and see how your money works for you.

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