Bridging finance is available to residential and commercial property owners in the following scenarios:

A. Where there is equity in a property and the owner has concluded a valid sale agreement.

B. When the owner has obtained approval for a new or additional bond to be registered over the property.

Usually transferring ownership of a property or registering a new or additional bond can take anywhere between 30-60 days. Generally the owner only obtains access to the surplus funds from the sale or new bond at the end of this period but there are often instances when the owner may need to access funds before this takes place. During this period, Rodel is able to provide the owner with bridging finance before registration of the sale or the new bond.

To facilitate this, the owner enters into a discounting agreement whereby Rodel acquires the equity/surplus for a fixed fee and, in return, immediately pays the owner up to 80% of the value of the equity/surplus. Rodel then obtains an undertaking from the conveyancing attorney that the equity/surplus will be repaid on registration of the transfer or the bond.

Mortgage Plus does not specify how the funds are to be used, but typically they are used for any of the following:

• as a deposit on a new property
• to pay transfer duty on a new property
• to cover the cost of outstanding rates/taxes/levies on the property being sold
• for repayment of personal debt
• to provide working capital funding for businesses

Example:

Sue sells house A for R1 million, she still owes ABSA R500 000 on the property. She puts in an offer to purchase house B for R1,2 million, she can however only obtain a bond for R1 million from FNB. The problem is that Sue does not have the R200 000 cash deposit to secure the purchase of house B.

A possible solution is that Sue can bridge the R200 000 from the proceeds of the sale of house A and use the cash to pay the deposit on the purchase of house B, thus ensuring that the purchase of house B is concluded successfully.

Limitations:

• Can’t be used for 1st time buyers
• Doesn’t apply if the seller sells for less than is owing to the bank, ie there is no equity to bridge.

Agent’s commission advances:

Mortgage Plus through Rodel will advance up to 80% of the commission due to a registered estate agent once all the suspensive conditions of the sale have been met.

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

Even though the property market is weighted in favour of buyers at the moment, finding and purchasing a home is usually still a pretty nerve-wracking experience, because there are always fears about picking the wrong property or paying too much.

However, says Hano Jacobs, prospective buyers can combat this anxiety by applying the following “stress-busters” to their house hunting process:

1. Consult a mortgage originator and get proper home loan advice and a pre-approval. That way you won’t waste time viewing what you can’t afford and you’ll be able to show sellers that you are a serious buyer equipped to make a serious offer. Remember, though, to allow enough time in the sale agreement for the bank to perform its own evaluation of the property and grant final approval of your loan.

2. Consult a reputable agent with local knowledge and experience and find out all you can about the area in which you propose to buy. To establish the market value of homes in which you are interested, ask the agent for details of recent sales in the area – including the type of property that sold most or quickest, and the prices that were achieved.

3. Having found a home you like, find out all you can about the specific seller’s motivation and needs. If the property has been on the market for several months, the seller might be receptive to a lower offer, especially if your loan is pre-approved. Why is the home for sale – is the seller under pressure because he has been transferred or perhaps already bought another home? Have there been other offers? If so, why didn’t the seller accept? Is there any flexibility in the asking price?

4. Make your first offer for the home you want your best one, after consideration based on your research. This does not mean that you have to offer full asking price, or that you should not be prepared to negotiate. It does mean that you should not treat the purchase as a game and risk closing the door on negotiation because of an unreasonable or unfair initial offer that will alienate the seller.

5. Make it a condition of sale that you can view the property again. When you find the right home, the chances are that you’ll know it right away, but you should take the time to confirm your decision. You might want to check the property out on a weekday instead of on a weekend show day, for example, or at night instead of in the morning.

6. Be sure to discuss everything “moveable” that you expect the owner to leave with the property when he moves out – and then ensure that his commitment is written into the sale agreement. Such items may include pool cleaners, bore-hole pumps, custom-made blinds or curtains, certain light fittings, security systems and even remotes for gates and garage doors.

7. Be sure that all arrangements regarding occupation of the property during the transfer period are clearly stipulated in the sale agreement. Dates and the amount of occupational interest payable should be exact, not couched in vague phrases that are open to misinterpretation and manipulation.

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