Wise individuals will always attempt to get the best value for their money, and one way of doing so is to apply for home loans rather than renting from someone else.

In South Africa individuals can make use of estate agents or use an online loans service to look for their desired home. The internet has transformed the way everyone does business and individuals can make use of online home loan or bond calculators to determine the home loan value they can qualify for. Off course other factors such as the credit rating of individuals will also influence the amount and interest rate charged when the actual home loans application is submitted.

Individuals are always advised to look beyond the dream home and should look at other factors such as the area in which the property located.  Factors such as the market value of surrounding properties will give individuals an idea of how easily they will be able to sell their property in future if they wish to do so.

Individuals normally have three options when wanting to apply for any home loans, and can either directly make appointment at the bank, make use of an estate agent or make use of bond originators.  Estate agents receive commission from the seller when a sale has been made whilst bond originators receive a fee from the bank directly.

Bond originators works with major banks on a full time basis and very often there are greater advantages in making use of bond originators then taking the process into your own hands. Such advantages include better home loan rates as bond originators submit thousand of home loan applications annually and therefore have better negotiating power.

Other than lower rates, bond originators take the hassle out of a home loan application and will handle the whole application process from beginning to end.  They will handle all the paper work and individuals will never have to speak to any bank directly.  Their service includes a detailed explanation of the home loan application process so individuals will never be left in the dark.

Using a bond originator comes at absolutely at no charge to the individual and originators will also obtain various quotes from various home loan financial institutions to ensure that the best value for money is given.

There are five important tips that individuals should consider when considering home loans:

1. Ensure healthy credit rating by making regular monthly payments on time to all creditors.
2. Reduce monthly expenses and by increase your monthly disposable income with as little as R1300 per month, could increase your home loan with R100 000.
3. Make use of bond originators who will be able to obtain quotes from various home loan institutions at the best interest rates.
4. Obtain a pre-approved home loan.  Mortgage Plus can provide a certificate of the home loan value they are willing to give you which could speed up the purchasing process of your desired home, and will give you an advantage over other possible buyers who show interest in the same property.
5. Be realistic. Even if the bank offers you a high home loan value it doesn’t mean you have to use the full amount to purchase a property.  Additional costs such as rates, taxes, levies and insurance will also be added to your monthly home loan installment.

Individuals seeking more information on home loans in South Africa can enquire below:

Mortgage Plus offers a wide range of advice on different bond options and further advice on the above. Please call us for further information on:

Complete this short form online

Call us on 011.327.4489

Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

Getting pre-qualified and approved at Mortgage Plus

Before you put in an Offer to Purchase, this is the very first thing you should do – get yourself pre-qualified for a bond.

Getting yourself pre-qualified before putting in an Offer to Purchase should be the first step you take. The National Credit Act stipulates that monthly deductions, e.g. income tax, monthly living expenses and debt need to be taken into account. Your level of debt can affect the amount for which you qualify. It is advisable that you provide your Mortgage Plus home finance expert with an accurate summary of your monthly expenditure so your pre-qualification amount can be determined. Your Mortgage Plus home finance expert will formulate your pre-qualification amount and issue you with a certificate. This enables you to provide an estate agent with a pre-qualification certificate that has been calculated according to the National Credit Act requirements.


Your pre-qualification is valid for 90 days. After 90 days your Mortgage Plus home finance expert will contact you to check whether your expenses have changed over this period. If there has been a material change, the pre- qualification will be recalculated and revalidated. If there is no material change to either income or expenditure, Mortgage Plus will reissue a revalidated certificate.

Quotation

Once the banks have assessed your home loan application, and if the application is successful, the bank will issue a Quotation which will include interest rate, cost of credit, any special conditions that may apply, etc. Your Mortgage Plus home finance expert will discuss this and other bank quotations with you. Once you agree on a Quotation, Mortgage Plus will notify the relevant bank, who in turn will proceed to instruct the attorney appointed to register the mortgage bond.

CONTACT US

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