Are you a first time home buyer?

 Are you looking for a loan? Do you want to know what you qualify for when buying your first home?

If you are a first time home buyer and you’ve always dreamt of the new house that you will own one day, you must have thousands of questions running through your mind. You probably don’t actually know where to begin!

And I guarantee that those questions range from:

What are the best home loan deals for first time home buyers?
Should I go for a fixed rate or a variable rate?
How do I get my first mortgage or home loan?
Should I go to a first time buyer mortgage specialist or a bank when I’m buying my first home?
How much can I afford to borrow for my first mortgage, and how much will it all cost me?

To the most important of the lot, CAN I AFFORD MY FIRST HOME?

Well, a good place to start is our first time affordability calculator section that will instantly tell you what your monthly repayments would be on any given home loan. Being a first time home buyer you’re left with plenty of options. The first being a 100% +home loan (for the right purchaser). Another option would be just a ordinary loan. Then there’s the option of a joint bond i.e. with a friend, girlfriend, partner or parent and last but not least a shared ownership loan. What this allows you to do is buy with an entire group of people thereby cutting down your monthly costs but obviously adding more partners.

The option I’m going to talk about here is a First Time Home Buyers Loan. A first time buyers loan is a 100% + bond (for the right purchaser). This means you’re getting 100% + loan (for the right purchaser)  to value of the purchase price for the bond you requested from the banks PLUS roughly 8% to pay for your bond registration and transfer costs. This obviously means that your bond is going to cost you a little more, your interest rate won’t be so great and the downside is that the 8% is going to take you an additional 3 to 5 years to pay off, but for those first time buyers who need the extra cash, the FIRST TIME LOAN is the IDEAL solution.

Requirements:

1. MOST IMPORTNANTLY – An absolutely clear credit record – so check yourself out with the credit bureaus
2. No bounced debit orders on your bank statements – watch for this and don’t get caught
3. 3 months bank statements - preferably originals or if internet statements stamped at the branch
4. Copy of your latest salary slip
5. Copy of your ID

Each bank has slightly different requirements for a 100% + bond:

First Time – ABSA First Time Home Buyer:

- Min first time bond amount of R120 000 with no maximum amount
- Trusts, cc, companies – 80% – 90% with a stable employment for 2 years
- You must be a South African citizen with a CLEAR CREDIT RECORD
- A minimum single income of R6000 and joint of R10000

Bond Plus – FNB First Time Home Buyer

- Min bond plus amount of R150 000 to a maximum of R2 mil
- Trusts, cc, companies - 80% – 90% loan with stable employment of 2 years
- You must be a SA citizen with a CLEAR CREDIT RECORD
- A minimum single income of R9000 or a joint income of R11000
- Variable interest rates offered

Jump Start – STD Bank First Time Home Buyer

- Min bond amount of R100 000 with no maximum amount
- Trusts, cc, companies - 80% – 90% no costs included. However they have been known to offer 108%
- Must be an SA citizen, employment proof needed with an acceptable credit record
- If 108% loan is asked, there might be an extra charge for “cost inclusive” risk
- Exclusions include vacant land and commercial property loans
- Variable rate or fixed rate

Alpha Bond – Nedbank First Time Home Buyer

- Min bond amount of R100 000 to a max of R2 million
- Trusts, cc, companies – 80% – 90% loan amount (including bond costs)
- You must be a South African citizen with a CLEAR CREDIT RECORD
- A minimum single income of R5000 commission earners, 12 months with the same employer and 6 months commission statements
- Exclusions – 2nd Time buyers, temporary employment building and home improvements loans
- Variable rate or 1, 2, 5 year fixed rate contract

FNB Home Loans
Mortgage Plus can help you in to get the best fnb bond for your needs. You do not have to lft a finger as we will organize with fnb for the home loan option that will suit you the best.

Apply for a FNB Home Loan Today!

FNB offers a variety of options:
Traditional Home Loan
Take out this loan when buying an existing residential property.

Building Bond
You can apply for a building bond if you are intending to build a home. Once the building is completed, your bond will revert to a normal home loan.

Smart Bond
The Smart Bond is a housing finance product for households that earn less than R15 000 and more than R2 500 per month. If you are planning to build your own home, the Smart Bond Building Loan will take care of your building needs.

Foreign Choice
This allows a foreigner or a South African who has emigrated to purchase a property in South Africa.

One Account
The One Account is an innovative product, secured by your home, that fulfills all the functions of a cheque account, overdraft, personal loan and home loan.
Choose the right facility for you

When applying for a facility on your home loan product, an affordability assessment will be done to find out exactly how much additional finance you can access.

Flexi Bond
You get access to surplus home loan funds 24 hours a day, 7 days a week if you have a transactional account with FNB. Alternatively, access to funds is available during business hours. Surplus funds include any prepayments, as well as a percentage of capital you have already repaid on your home loan up to a pre-determined limit.

Future Use
This enables you to register a bond greater than the home loan amount you require, creating an extra amount that may be accessed at a later stage.

Pre-Paid Finance
Withdraw any additional money that you have paid into your home loan account.

Repayment Choice
Increase your monthly instalment and save on interest. This also allows for you to pay off your home in a shorter period of time.

Re-Advance
This gives you access to the funds that make up the difference between your original registered home loan and the outstanding balance.

Further Bond
Obtain funds by registering an additional amount over and above your original registered bond amount.

Interest Rate Options
Fixed Rate
For the duration of your contract period (12, 18 or 24 months), the interest rate on your home loan remains fixed and is unaffected by any rise or fall of general interest rates.

Variable Rate
This is the standard interest rate option. The interest rate varies in line with current interest rate movements.

BA Linked Rate
The interest rate is directly linked to the publicly quoted three-month SAFEX BA rate (Bankers Acceptance Rate) and offers a highly competitive means of financing your home loan.

Home Loan Insurance
Home Owner’s Cover
This insures your house and any structural improvements to the property. This cover is compulsory with any home loan.

Home Loan Protection Plan
This plan provides peace of mind in the unforeseen events of death, temporary and permanent disability and retrenchment.

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

Second bonds might be the solution for some homeowners. Being a homeowner leads to a great many expenses, both expected and unexpected ones. In most cases, new homeowners calculate the expected costs into their budget so they understand how much house they can afford to purchase while still having some money to play with.

Unfortunately, those unexpected costs can add up and lead to spiralling debt and a life of stress-related days. Maybe you think you can handle it on your own and you are doing great until the unexpected repairs seem to come on a regular basis, knocking at your door and depleting your wallet every month instead of every year. Then, you suddenly realize that this is what they don’t teach you about either in school or at home.

Perhaps it’s time to do something sensible about it instead of using the credit cards to pay for the necessary repairs or borrowing payday loans to pay off the servicemen and equipment. After all, a second bond is going to have lower interest rates than either your credit card account or a payday loan.

Plus, in most cases, the interest charges are tax deductible and can lead to added savings for your bank account at income tax time. Better still, since you can select a term of 10 or even 15 years, the monthly payments might not even be that large. But just what is a second bond?

Second bonds are simply loans that are taken out after the first or primary bond. They are often referred to as second mortgage loans and are often placed on a home while the primary mortgage is still in existence. Although the homeowner will need to make the same type of decisions with a second mortgage as with a first mortgage, the expense is considerably less.

The homeowner who is interested in a second mortgage bond will need to determine the type of loan they want to obtain such as variable rate or fixed rate. Plus, he will also need to submit an application, similar to the one he submitted for his first bond, as well as prove that he is capable of repaying the bond. Additionally, he should calculate how much money he would need to borrow in order to cover all of the new expenses.

Once you have acquired a second mortgage bond, revamp your budget to include your new payments. You can use the proceeds to pay for the new repairs, pay off existing credit card debt, and possibly have some money leftover for any new repairs that happen to arise in the near future.

To apply for a second bond you will have to fill out a short application form. You will then receive a FREE quote from well established, nationally recognized lenders. You do not need to decide now whether a second bond is for you.

Just apply and compare the repayments to your current situation. There is no obligation on your part. If you decide that it is not for you, you simply do not have to accept the offer. You have nothing to lose and everything to gain.

Please Phone us on (011)327-4489 for more info. www.mortgagepluscc.co.za