Which banks are currently offering full 100% bonds?
The four major mortgage providers in South Africa are:
Although the property market may go through its ups and downs, one of the few things that does remain relatively constant is the demand for 100% home loans.
The banks are always changing, re-evaluating, and assessing their lending policies to ensure they’re keeping pace with the current market conditions.
For this reason, you should always speak to your bond originator before you decide to sign an Offer-To-Purchase on a new property.
Your bond consultant will be able to tell you what the banks are currently willing to offer you.
Currently the requirements for a 100% bond are:
A Willing Lender:
Before you can hope to secure a 100% bond you’ll need to find out which of the banks are currently offering mortgages up to 100% of the value of the property.
A Clean and Clear Credit Record:
Your credit rating and credit record are among the most important factors to consider whenever you are applying for credit.
The banks use these ratings to gauge how well you conduct your accounts. The higher your rating, the more likely you are to be approved for the full loan amount.
The interest rate on your bond is also determined, in part, by your credit rating.
In some situations, you may find that the value of the property far exceeds the price you’ve paid. In these situations, the banks are often very keen to grant you a full 100% bond, as their risk is covered by the extra value. If anything goes wrong the bank knows that you will be able to settle the bond by selling the property.
Currently, the banks each have loads of repossessed properties on their books. In an effort to sell these properties they have launched a campaign to grant full 100% bonds on these sales.
Your Own Affordability:
And finally, the bank will not grant you a full 100% mortgage if you are not able to afford the monthly bond repayments.