Comments on: How to secure a 100% Home Loan

By: CJ

CJ — Mon, 07 May 2012 05:46:40 +0000

Hi, I want to buy a home to rent out. I’m a business owner and the business is run in a partnership. Is it possible to get a 100% bond?

By: Ann Garthwaite

Ann Garthwaite — Tue, 01 May 2012 09:24:08 +0000

I have recently built a house. At the time of securing my bond I clearly advised all the banks that I applied to that I needed at 100% bond. All the bonds I applied for were granted, but none for 100%. After discussing (in detail) that I would then need to cut back on the buildings with various people at the bank, I didn’t feel that I would have too much of a problem, and went ahead and signed with on of the major banks. It didn’t take me very long to realise that, despite all the (verbal) assurances I got from the people at the bank – I had a serious problem. I’m not sure if it was because of lack of training, or if (a lot) of people didn’t fully understand the policies of the bank they are working for but it very soon came to light that I would not be able to cut back on the buildings, and in deed would need to haul out a huge sum of money before any monies would be paid out to me at all! I finally got all the correct information about how building projects work… sadly not from the bank, but from their (outsourced) building inspectors. I, once again went back to the bank, and spoke to a snr manager, who quite tersely advised what I should do to try and resolve my problem. (By this time I had borrowed money from relatives and friends to try and get the house built – and still it wasn’t enough). I explained this to the manager, who then advised that I should go back to the bond initiator, and he (the manager) would explain to him how to resolve my problem. This I did, and the advice I was (once again) given, was to take an additional personal loan, and then apply for a 2nd bond once the house was built – with their fine words of wisdom of: “One doesn’t build long term projects on short term loans”. Very relieved that I had now solved my problem, I completed building my house, which had now also gone over the initial value of the quotation, due to small changes and increases in costs of building materials. (Which I was also advised is “very normal”). As soon as the Occupational Certs were issued, I went straight back to the bank to apply for my 2nd bond to cover all the loans that are now quite overdue. I immediately qualified on the credit rating, but have now been advised that the bank can’t find sufficient value in the property to approve the 2nd bond, as they now need to find more value in the property than there actually is.

I am desperate to get this problem solved, because the difference in paying off personal loans, as opposed to having a 2nd bond on the property is solvency vs insolvency for me personally. This I keep telling the bank on a daily basis, but they don’t really seem to care much.

If anyone has had a similar experience, any advice would be greatly appreciated.
Thank You

By: David Molelekeng

David Molelekeng — Sat, 21 Apr 2012 09:56:57 +0000

Hi my name David, I earn R8200 and just received an offer to purchase of R360,000 for the house I am renting so me and fiance who earn R2500 we are want to go combine for this house cos we have been staying in this house for while and we like this house.

Please help me what can I do becos my bank is willing to give R300,000.

Assistantance will be highly appreciated

By: Pricilla Musson

Pricilla Musson — Tue, 17 Apr 2012 16:02:03 +0000

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By: Anon

Anon — Mon, 09 Apr 2012 18:49:16 +0000

Hi, I have a property fully paid to value of R600 000 ,buying another property to value of R950 000, renting the 1st property I would make R2,500 ,would I not gain more to sell 1st property and save paying interest?

By: jones

jones — Sun, 08 Apr 2012 12:54:34 +0000

I and my wife want to buy ahouse which coast R695 000.00 we are renting ahouse forR3900.00 athe moment and our jont salary is R21 000.00 per month. My credit recod is not clean but my wife is cleane . So is it posible for us to qualify for the 100% loan.

By: noluthando Masondo

noluthando Masondo — Mon, 26 Mar 2012 09:45:52 +0000

hi, I need a bond for +-R350 000, how do i qualify for that amount? I am a first home buyer who wants to buy a house,

Thanks

Kind regards
Noluthando

By: Property Loans

Property Loans — Wed, 14 Mar 2012 07:44:44 +0000

Hi Pearl, you could definitely buy a house together. The only concern would be the loan size you'll be granted. If your partner banks his income in a foreign bank account you might only qualify for a 50% home loan.

By: Property Loans

Property Loans — Wed, 14 Mar 2012 07:35:12 +0000

Hi Maria, while 100% bonds are available currently they are not available to clients who are applying for a further bond or second home loan. The maximum the banks would be willing to lend you at the moment would be up to a maximum of 90% of the property value.

By: Maria Feliz Martins

Maria Feliz Martins — Tue, 13 Mar 2012 17:53:13 +0000

i would like to apply for second home loan to purchase a business
would it be 100% approved