HomeLoan Tips: Securing Mortgage Finance in Tough Times.
The general understanding about property ownership is, if you’re looking to get into the market it’s best to get in as soon as possible.
And now is a near perfect time to buy. Sellers are struggling to find willing buyers and are being forced to accept lower offers. This is great news for buyers.
While this may be the best time to be on the buying side of the market, you’re not so fortunate if you trying to secure a home loan. Banks have really tightened their lending policies and are no longer approving 100% bonds.
So what do you need to qualify for a home loan today?
Here are the three keys to securing the home loan you need – PLUS 1 Bonus!
30% of your income
Only one third of your monthly income can be used to pay your bond instalment every month. That means with a salary of 15k/pm your bond instalment can be no more than R5 000/pm.
If the monthly bond installment is higher than R5k/pm the banks will not consider your application.
At least a 10% deposit
The days of 100% and 108% home loans are over (for now). All banks now require at least a 10% deposit before they are willing to approve your property finance. This also means you’ll need to save a little extra to pay for the Bond Attorney and Transfer costs.
Clear Credit Record
Now more than ever, if you’re trying to secure a mortgage you will have to ensure that your credit record is clear. Before submitting your application ensure that you are up to date with all your accounts.
Here’s the Bonus!
A little help from Olen Kolbe…
With the assistance of a bond originator you can ensure that you’re getting the best interest rate, plus you’ll save on your bond registration costs.
Speak to Olen Kolbe, she’ll be able to assist you with any queries you may have about homeloans and will get you the best homeloan deal.