Proving Attractive Home Loan options for First Time Home Buyers

In the highly competitive South African home loan market, Mortgage Plus is making its mark by offering first time home buyers a range of user-friendly and attractive home loan offerings as well as solid financial advice and guidance.

Launched in 2006, Mortgage Plus is a mortgage or home loan origination company that has built its reputation on offering South African home buyers top property and financial advice, as well as a selection of 5 home loan products to suit all South Africans.

Mortgage Plus’s First Time Homeowners Loan is a ’specialist’ home loan that has been designed to allow the more ‘cash-strapped’ home buyer to borrow over 100 percent of his or her home loan with no deposit required to make allowances for registration and transfer fees.

Its Variable Rate Loan links a home buyer’s base home loan rate to the national interest rate which means that as the interest rate rises or falls so does their home loan rate which is a facility welcomed by many budding SA home owners.

With its Fixed Rate Loan, a home buyers interest rate is fixed for a specified period of time, usually from one to two years, which is a great way to protect home owners against rising interest rates and ensure that their monthly home loan repayments remain constant.

Mortgage Plus’s Capped Rate Loan allows home buyers to benefit from any decrease in the national interest rate but contains a ‘capped rate’ which means that home owners know up front what their maximum interest might be, ensuring piece of mind.

Its Step Down Loan has been designed to allow a South African home owner’s interest rate to decrease during a pre-specified period (usually up to 5 years) by a certain percentage every six months regardless of interest rate rises or falls.

Together, Mortgage Plus Bond Originators home loan offerings manage to cater to most prospective South African home buyers and ensure that everyone has the same opportunity to become a home owner.

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

Budget Better With Fixed-Rate Loans

Lower-income families and those on fixed pensions should now seriously consider fixing the interest rate on their home loans. That’s the advice of Morne Prinsloo, CEO of leading mortgage originator Mortgage Plus, who notes that while most banks will charge a higher rate on fixed-interest loans, these do enable borrowers to budget with more certainty…

“And this is especially important for certain consumers, such as those living on a set income, first-time buyers and lower-income families, who don’t have the flexibility in their household budgets to be able to absorb a series of increases in their home loan repayments when interest rates start to rise.

The reason for his concern at this time, he says, is that many economists are currently revising their earlier predictions that interest rates would not start rising again until next year, and forecasting that the first increases could take place in the last quarter of 2011.

What is more, the next round of increases is expected to take prime and variable mortgage rates from the current 9% to at least 11,5% in 2012.

The main drivers of rising interest rates, Prinsloo says, will be rising oil prices because of the internal conflicts in many oil-producing countries, and rising food prices because of the natural disasters such as floods and droughts that have cut production in many parts of the world, including SA.

“Indeed, in its latest Financial Stability Review, the Reserve Bank says these two supply-shock factors are already affecting the economic and inflation outlook in many countries that import oil and food, and that a higher inflation outlook could soon necessitate ‘monetary tightening’ – or higher interest rates.

“But rather than wait for the axe to fall, vulnerable borrowers should fix their rates now. They will pay a premium, but it is likely to be less pf premium than when rates are already on the rise.”

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