Mortgage Plus Home Loan calculators help you make the right decision*

Bond Calculator Objectives
The most common calculation objectives when using bond calculators are calculating monthly bond repayments & interest, determining levels of affordability, calculating the income qualification benchmark based on a required bond amount and analyzing optimal bond repayment options.
All of these objectives can be met by using our bond calculators. We also provide additional bond calculations which enable users to calculate sensitivities around the main bond variables – interest rates, bond periods and deposit amounts.
A comprehensive transfer and bond cost calculator is provided to assist in calculating an accurate estimate of the bond and transfer costs that will be incurred when purchasing a property. Our bond calculators also feature an amortization table which includes a column for the outstanding capital percentage – this calculator is well worth having a look at and is guaranteed to enhance any user’s understanding of how the outstanding capital amount is repaid over the entire bond period.
All our bond affordability and minimum income calculations are based on net disposable income as required by the National Credit Act.

Home Loan Affordability Calculator
Work out the loan value you could qualify for based on your current gross income. The bank requires a clear credit record and generally allows you a loan on which the repayments are no more than 30% of your gross monthly income.

Bond Repayment Calculator
Before you start looking for a home, do a few calculations to establish your price range, your repayments, and the once-off costs of the purchase.
The calculator uses the simple criteria of calculating the Home Loan Amount and then the Loan Repayment Amount based on the criteria selected. If your Bond Costs are included in the Home Loan Amount, increase the Purchase Price with the costs.

Savings Calculator
Calculate the amount saved on your loan by paying additional instalments.

Home Loan Amortization calculator
The amortization table displays the breakdown of the monthly bond repayment into an interest and capital portion over the entire bond period. It also reflects the outstanding capital amount at the end of every month during the bond period.

Transfer and Bond Cost Calculator
The purchase of property is levied by the government (transfer fees) and there are legal and admin costs for the registration of the home loan, most of which are due upfront, before transfer can take place. Use this calculator to work out what these costs are so you can have the funds available in time.

Home Loan and Mortgage Calculators

Disclaimer: All rates and fees are illustrative rates and fees, which are subject to change. This calculator is provided for you convenience and provide estimated values based on the criteria selected. When consulting a Mortgage Plus agent the costs can be formally confirmed based on all the information provided.

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

When purchasing a home one of the most overlooked aspects is getting a good mortgage. The difference between a good and bad interest rate could save a person hundreds of Rands per month or give them tens of thousands of Rands of extra affordability. With interest rates near all time lows, now is an excellent time to lock in “Fix” a low interest rate through either a new mortgage or a mortgage refinance. However, due to the recent rates of mortgage defaults, many mortgage lenders are hesitant to give out new mortgages and getting the best rates are even harder to come by. Luckily, there are various steps a person can take to get a good mortgage rate.

Have Good Credit

The first step a person can take to get a good mortgage rate would be to have good credit. When reviewing a credit application, a person’s credit score is one of the largest factors that a bank uses in the mortgage approval process. This is because a credit score shows a person’s ability to make payment on time and as agreed and can be used to determine whether the person will continue to make payments on time in the future.

To understand your credit, it is important to check your credit report. If there are inaccurate or negative information on your credit report, it is important to fix the issues a few months prior to applying for the mortgage. Some of the easiest ways to improve your credit score quickly would be to have erroneous information removed, pay off any outstanding credit card balances, and pay off any existing charged off accounts. In general, you will need a credit score of 700 to be approved for a mortgage and a score of 740 to get the best rates available.

Put More Money Down

The second step a person can take to get the best possible mortgage rate would be to put more money down. In recent years, many lenders were willing to give mortgages to people with no down payment. Due to declining property values and high rates of underwater mortgages, most banks now require a higher down payment. In order to get approved for a new mortgage or a mortgage refinance you will need at least a 10% down payment. However, in order to get the best possible rate, and to avoid paying private mortgage insurance, you will need at least a 20% down payment.

Purchase a Cheaper Home

The third step that a person can take to get a lower mortgage interest rate would be to purchase a cheaper home. Home affordability is one of the biggest risk factors considered by mortgage lenders. In years past, mortgage lenders were willing to give a mortgage to someone whose housing debt to monthly gross income percentage was 40% or less. Since lenders have found that people with that level of housing debt are more likely to default, many lenders now recommend a percentage of 30% or less. Therefore, if you are looking to get a mortgage, purchasing a cheaper home will lead to lower payments and, therefore, a lower debt rate.

Negotiate

The fourth step that a person can take to get a lower mortgage rate would be to negotiate with lenders. If you have a good credit score, a large down payment, and are purchasing an affordable home, many mortgage lenders will want your business. If this is the case for you, you will be able to negotiate with lenders to receive both a lower interest rate and lower fees.

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