Home Loan and Property Tips

With interest rates up and affordability dropping it may seem like the wrong time to begin climbing the property ladder. But, with a bit of know-how and resolve you’ll find that it’s not as difficult as you might think.

Rising Inflation and interest rates have forced many potential buyers and investors out of the property market, which has a knock-on effort for sellers. With fewer buyers in the market sellers are forced to lower their asking prices.

You should be able to find a fair number of great deals at the moment. Keep an eye out for properties that have been on the market for more than 4 or 5 weeks – their prices are usually very negotiable by now.

While it is thought that the National Credit Act (NCA) has stopped many buyers from securing the home loans needed to buy properties , viewed from another perspective – the Act also offers buyers a new method of securing home finance.

Following the implementation of the NCA – some mortgage lenders are basing their home loan qualifying criteria on your total disposable income, and not your gross income. This means that someone [or a couple] earning R15k/pm could potentially qualify for a home loan of R700k, if their total disposable income is able to support the monthly bond repayment of about R8 000.

The current property market can be described as a buyer market and although banks may be stricter with their lending criteria, no leader is going to turn away a client that can display affordability and a clear credit record.

Bond Originator South Africa

Co Founder of Mortgage Innovations

NICOLA · July 8, 2009 at 7:56 am

Needs advice on first time buying & applying for a home loan

charmaine von abo · June 29, 2009 at 8:39 am

First Time Buyer needing assistant and advice on securing a 100% home loan. Can some of the loan be used to consolidate debt.

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