For most people, buying a house is going to be their biggest financial investment, and despite this we often give little serious thought to the fact we'll be committed to paying a bond for the next 20 or 30 years. Another reason for this common oversight is that the large commitment is often looked at in terms of its relatively small monthly repayments. But you would be shocked, if you were to realize just how much interest you'll end up paying on that bond over the term of your long. For example, on a bond of R1 000 000 over 20 years you actually end up paying the bank over R2 million. That's double the initial loan amount -
FAQ About Bond Origination Which banks do you apply to? We apply to all the major banks. If you are already a client of one of these banks we will apply to that particular bank first, based on your application requirements. Will I be able to directly compare the different packages offered? Yes. Your consultant will explain the different packages the banks are will to offer you. How long does it take before the mortgage bond is approved? The banks will usually take about 72 hours to produce an Approval In Principal, which is subject to a favorable valuation of the property. What information do you need? We need your personal and financial information, as well as bank details.
One of the most frequently asked questions we receive from our clients is whether they should apply for a 20 year bond, or whether they should extend their home loan term up to the maximum of 30 years. There are number of advantages and disadvantages to each type of bond, but the most obvious benefit is that a 30 year term would equate to a low monthly bond repayment. But this low, more affordable, monthly repayment comes at an expense. The total interest you’ll end up paying on your 30 year bond will be significantly more . For example take a look at the table below that compares the monthly repayments and total interest of a R750 000 bond
The decision to invest in property is often quite debatable. It depends on the current market climate - whether house prices are growing quickly or declining, and whether you’re buying the property as a primary residence or as an investment that can produce rental income. The property market has certainly gone through a very tough few years, and property prices have actually dropped during that time. Investors and homeowners who bought property at the height of the bubble have found that their homes are now worth far less than they had paid. Going forward, it seems like the market is recovering but the recover has been very slow. To slow for most investors. When compared to other investments, the
A common question among home buyers is whether it is possible to get two home loans at the same time. And the short answer is yes and no, it all depends really. If you are buying a new property and are trying to get a bond from, say, ABSA Home Loans while also applying at FNB at the same time then you would have to choose to accept the bond from one of those banks. The bank will not allow you to have two bonds registered on one property. But, you could apply for a Second Bond or a Re-advance on your existing property. A Re-advance is also often referred to as a further bond. With a further bond
When it comes to home loans the type of Bond you will qualify for can vary quite a lot. Some of the factors that will determine what bond you qualify for include: your income; the type of property you're buying; or your nationality. Home Loans For Affordable Housing Clients Currently most banks are offering exclusive 100% bonds for clients who fall in to the affordable housing range. Affordable Housing Bonds are available to household earning a joint income that is less then R15 000 per month. These types of home loans include the full purchase price of the property, and may also cover the addition transfer and bond registration fees... [Read More] Home Loans For Repossessed Houses The bank
Over and above securing the actual capital finance for a new property purchase, it is important to understand the range of interest rates banks are presently financing at and how the personal aspects of your application can affect the interest rate offered on your home loan. Some important factors that would influence the pricing decisions include: loan to value percentages, location and physical grading of the property purchase, personal credit score ratings, borrower types [ for example self employed verses full time employed], property types [ vacant land or building loans verses completely built property structures], and finance affordability All of these factors are compiled to determine an interest rate suitable for both the lender and borrower. The only