Purchasing a home and registering a bond can be quite confusing. However with Mortgage Plus, your consultant will simplify the process, keeping you informed throughout the property transfer and will be on hand to give you professional advice until the day you move into your new home.

Here are some pointers that describe the house buying process and your involvement in it, as well as give you insight into some of the behind the scenes activities.

Assess your financial position
As buying a property can be the biggest purchase you make in your lifetime, assess your financial position first and make sure you are ready for this commitment.

See how much you can afford
It’s very important to know exactly what you can afford before you start house hunting. Mortgage Plus can offer you a free affordability assessment. We will also explain all the costs involved in buying a home, including up-front payments, monthly repayments and any other costs that may occur as a part of the property transaction. Follow the guide on the Cost of Financing a Home to obtain an understanding of the costs involved in buying a home. It is important as the new National Credit Act wants to ensure you do not overspend and we can assist with a basic guideline on how to calculate the loan amount you can afford to repay monthly.

Choose an agent and view properties
Register with a few agents to ensure you are exposed to a variety of properties in your chosen area. Visit a number of homes before you make a decision. A Mortgage Plus consultant can assist you in finding a suitable agent in your area and will explain the different ownership options to you.

Sign an Offer to Purchase
Once you have decided on a property and signed an Offer to Purchase and the seller has accepted the offer and signed the document, the offer becomes binding by law and the transfer process can begin. There is however a cooling off period of 5 days for properties which are sold for less than R250 000, to allow you a grace period to review the property and the costs involved.

Obtain finance through Mortgage Plus
Your Mortgage Plus consultant will submit your application and the relevant FICA documents to one or more banks, which will assess the value of the property as well as your financial position. The bank will apply the credit assessment criteria as required by the National Credit Act and the financial risk criteria as stipulated in the bank’s terms and conditions for lending.Your Mortgage Plus consultant will then advise you of the offers they have obtained for interest rate and available loan amount, and will give you an informed recommendation.

Pay your deposit
Once you have chosen a bank, you will then (in most cases) be expected to pay your deposit to the attorneys dealing with the registration of your bond.

The property transfer begins
The bank will grant the loan and instruct the attorneys to start with the registration of the bond and transfer of the property into your name, as well as the cancellation of the seller’s bond. They will also obtain the title deeds and the transfer and tax clearance certificates. Registration, transfer and cancellation take place simultaneously and require the services of up to three different specialised attorneys.

Transfer documents signed and fees paid
The attorneys will complete the necessary administration. You and the seller will need to sign the transfer documents. At this time you will be expected to pay the transfer costs, registration fees and an estimated share of the rates.Registration documents are lodged at the Deeds Office. This is where the property will be registered in your name. Congratulations, the property now belongs to you!

Home loan comes into effect
Once you have received notification of the registration, your bank will pay the seller, or their bank, and your home loan will come into effect. The bank will notify you of this in writing and inform you when your first monthly instalment is due.

Taking occupation
You may take occupation as per the date agreed on your sales agreement. If you are already occupying the property, you will no longer have to pay occupational rent.

Who is involved in the purchase of a property?

• You (the buyer)

• The seller

• The estate agent

• The transferring attorney (also known as the conveyancer) – appointed by the seller

• The bond attorney – appointed by the bank granting the bond

• The cancelling attorney – appointed by the seller’s bank, to cancel their bond

How can you speed things up?

• Get pre-approval for your home loan

• Provide all requested personal and financial information

• Pay your deposit, if any, as well as bond and transfer costs on time

• Sign all documents when requested

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

INTRODUCTION:
A first-time home buyer is someone, looking to purchase their first property or home. But before you’re able to purchase your first home you’ll need to secure a home loan.

In many cases a monthly installment on a home loan is more or less the same as a rental payment on a lease contract. The only exception is the transfer duty fees which is payable upon registration of your bond “ although this may even be included in your bond amount.

So, you’ve decided to purchase your first home and all you need now is the finance.

You’ll want to remember that as a first time home buyer there are a number of special criteria which you’ll need to fulfill if you wish to qualify for home loan finance.

One of the most important factors to consider is what size bond you can qualify for.
Often this is about 25-30% of your joint salary, meaning that if you and your partner apply for the home loan jointly you could be approved for a larger loan.

KEY FACTORS for your home loan application:
The minimum home loan amounts offered by most banks in South Africa usually vary between R100 000 and R150 000.

Upon the application for your home loan the bank will consider the Loan-to-Value ratio (LTV) , which is the ratio between the home loan amount you’re applying for and the value of your property.

For example, Mrs. A. has R100 000 available as a deposit for a property which is valued at R500 000, she therefore only needs to apply for a R400 000 loan, the LTV is therefore 80%.

The reason this is so important when applying for a home loan is because the LTV percentage forms part of the interest rate calculation on your loan amount.

The lower the LTV percentage – the lower the interest rate will be on your mortgage.

Remember that as a first time home buyer you might not have a deposit available for your new home, therefore many banks provide LTV percentages of up to 108%. Meaning you can get a loan which covers the full value of the home and all costs included.

The maximum loan term offered by all banks is twenty years, and some banks require a life policy to be ceded to them. It is important to clarify this with your bank immediately.

REQUIREMENTS:
The general requirements of applying for your first home loan are the basic details of your monthly salary, your credit history and the offer to purchase.

The following criteria will need to be passed to qualify for a home loan

1) You’ll have to be 21 years or older
2) Six months permanently employed or at least self-employed for two years
3) The minimum salary requirements can vary between R8,000 and R10,000/pm joint or single income.
4) You’ll need to have a credit clear history, i.e no judgments or defaults.
5) Some banks may require SA citizenship.

Make sure you have all the following documents available.

1) Copy of ID,
2) If you’re full-time employed, 3 months bank statements.
3) Offer to purchase, which is the written agreement between the seller and the buyer on the purchase price of the property.
Sectional Titles must submit most recent body corporation financials.
4) Most recent payslip, although commission earners will need to submit 6months payslips.
5) If you’re a self employed business owner,
- 6 months business accounts statements
- 6 months personal bank statements
- a letter from auditor or accountant stating monthly income.

To apply for your Loan – Click Here

or call us on 011 327 4489

Why do I need this?

To cater for Islam’s prohibition of the use of Riba (interest), FNB Home Loans has developed IslamicFinance home loans which is ‘Shari’ah’-(Islamic Law) compliant.

FNB IslamicFinance offers a Wakalah (Agency Agreement) contract that allows it to act as an agent when purchasing property on your behalf, for a fixed agency fee. An agency agreement is concluded and all the charges and fees are levied through this agreement.

Excluded under the IslamicFinance Home Loan In keeping with Shari’ah Law, the following are not permissible:

• Further Loans
• Re-advances
• Flexi facility
• Building Loans

What will it cost?

The following costs apply to the IslamicFinance Home Loan: Registration and transfer costs

• A once-off processing fee
• Monthly admin fee

Do l qualify?

The IslamicFinance Home Loan caters for the Muslim community in particular, but is not limited to the Muslim community

You can get this at ?

Mortgage Plus cc (011) 327-4489

What do I need to do?

You need to provide the required documentation to allow us to assess your application:

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