South African Homeowners

Given that the average house price in South Africa is approximately R800 000 and that most people take out a hefty bond to finance their home, home owners would be well advised to prevent  additional property-related expenses by avoiding simple oversights.

This is according to Mortgage Plus Bond Originators, who advises that consumers can safeguard themselves financially by taking note of five of the most common property-related mistakes made:

1. Shop around before securing a bond

Shopping around with multiple banks and negotiating the best deal can make a big difference to your monthly bond repayments.

A bond originator is able to assist by submitting an application simultaneously to multiple lenders, ensuring a greater chance of approval and on the best terms. Originator consultants understand the different credit criteria and requirements of each bank and are able to provide independent advice to potential home owners.

Additionally, duplication of documentation is avoided ensuring fast approvals while benefiting from a single point of contact to manage the entire process. A bond originator’s service is also at no cost to the homebuyer and without any obligation to accept a particular loan sourced.

2. Under-insuring your home and contents

If you’ve made any improvements to your property since taking out your home insurance, it will have changed the value of your home. Significant changes to your house will increase the value it should be insured for, so it’s important to keep your insurer up to date with any changes.

Also, don’t forget your contents insurance as most people often underestimate how much their belongings are worth. If you purchase new furniture or electronics, then you should review your contents policy (at least annually) to ensure that you have adequate cover.

3. Failing to take basic steps to secure your home

It’s all very good and well to have a home contents insurance policy, but if you don’t take the appropriate measures to secure your property, you may find yourself seriously out of pocket if you are burgled.

If your home fails to meet your insurer’s security requirements, then your policy will become void, even if you’ve paid premiums for years. Don’t waste your insurance premiums or, worse, face having to pay to replace stolen possessions. Read your contents policy carefully and ensure your home meets its minimum security requirements.

4. Using a sub-standard contractor

Substandard home improvements can cost SA consumers millions every year and can actually reduce the value of your home, or worse, cause expensive damage. Unfortunately, the process of sourcing a reliable builder and managing a building or renovation project can be extremely stressful, but if done incorrectly can add lasting financial stress for a homeowner.

To safeguard yourself always remember to do a thorough background check on anyone who is going to take a hammer to your home. This includes requesting to see proof of their building credentials which can include memberships such as the Master Builders South Africa (MBSA).

5. Spending on improvements that add little value to your home

Not every improvement will add value to your home. For example, new carpets costing R50 000 add very little value to your property’s overall worth. However, the right paint job can add up to 10% to your home’s value.

Your first home improvement priority should be to ensure the property is structurally sound. Roofing, windows, damp proofing and the electrics should all be in top condition and if they’re not, should be at the top of your home improvement list.

Once you’ve taken care of the structural side of things, you can move on to improving the look and feel of your home. Have a discussion with your local estate agent to get some advice about what features can add the most value to your home.

Tip: If you’ve made any improvements to your property since taking out your home insurance, it will have changed the value of your home. Significant changes to your house will increase the value it should be insured for, so it’s important to keep your insurer up to date with any changes.

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

Everyone dreams of buying a home and typically will save for a while in order to secure a down payment. Traditionally once you are ready to purchase your first home you will approach a financial institution for a mortgage. Then you would wait to hear if you have been approved for a mortgage. Things are not necessarily that easy anymore, banks are becoming more difficult to secure a loan from and there are many different banks offering various mortgages rates. The whole process can be confusing; this is why a Bond originator can be helpful.

Bond originator provide a service to you in applying for a mortgage loan. It is their job to assist you with the process of securing a home loan and get you the best possible rate. A Bond originator actually simplifies the process by acting as the liaison between you and the financial institutions.

Agencies that act as Bond originator’s work for you but get paid by the bank. Their services are free to you the applicant and you never pay them any money. The way they get paid is through the bank when a bond for a new home has been granted.

The originator works directly with you, the applicant, and handles all the leg work associated with securing a bond. These professionals deal with financial institutions on a regular basis. They are educated in all the options that may be available to you the loan applicant.

Since they deal with the banks on a regular basis they have the power of the negotiator and therefore provide you with leverage that you as an individual would not have. Consequently the banks are more willing to work with them since they represent more than just your mortgage. They basically have the advantage of being more than just a single person dealing with the bank.

This leverage can be utilized to provide you with a loan that has a better rate and perhaps shorter-term than you would have qualified had you not used their service. Utilizing an originator to secure your mortgage is a hassle free way of securing a loan and assuring yourself that the terms are the best possible. These professionals can evaluate your financial situation and determine what you may qualify for and what they feel they can pitch to the bank.

Bond originators are becoming the most popular method of applying for a loan for a new home. It is believed that this will eventually be the only way to apply for a mortgage. Under tough economic conditions banks become more and more selective and provide mortgages only to the absolute best applicants. This does not mean that a home loan is out of reach of the average person. But rather that the bank needs more evidence of your ability to pay. The bank originator will convince the bank that you are a viable candidate for a mortgage. If they don’t secure your mortgage they don’t get paid. These are the reasons why you should seriously consider using a Bond originator when you get ready to buy a new home.

CONTACT US
For more assistance with regards to Applying for Home Loan Finance .
Email: morne@mortgagepluscc.co.za
Ph: 011.327.4489
or Complete This Online Form