Home Loan Tips

Home Loans: 20 year bonds vs 30 years

2019-07-22T15:32:08+02:00October 1st, 2012|Home Loan Features, Home Loan Tips|

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

Is Residential Property A Good Investment?

2018-10-08T16:51:19+02:00August 8th, 2012|Home Loan Tips|

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

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Is It Possible To Get Two Homeloans At The Same Time?

2012-10-01T10:25:56+02:00August 2nd, 2012|Home Loan Tips|

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

Banks’ Present Interest Rate Offerings

2013-05-13T10:49:30+02:00June 1st, 2012|Home Loan Features, Home Loan Tips, Interest Rates|

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

Home Loans For Low Income Earners

2019-07-23T10:20:09+02:00March 15th, 2012|Home Loan Tips|

All the majors banks in South Africa now offer home loans for low income earners. These bonds are available to families who are unable to qualify for RDP houses, housing subsidies, or who were previously unable to meet the minimum requirements to secure a home loan from the bank. South Africa is currently experiencing a large emerging middle market that is driving demand for affordable housing. This trend has caused government to setup innovative products and initiatives between private developers and local banks to assist homeownership among lower income earners. These new affordable houses are typically priced around R300 000 and range between 50sqm and 80sqm in size. Below is a list of banks that offer home loans to

Benefits Of An Access Bond

2012-08-08T10:07:22+02:00March 12th, 2012|Home Loan Tips|

The benefits of an access bond has become so clear that most new home loan accounts are now access bonds too. The range of types of home loans available these days has grown tremendously, and all the major banks now offer Access Bonds. Basically, an access bond is a home loan that allows you to save extra monies into your home loan account, to help reduce the outstanding loan amount and the interest charged. The brilliance is that you still have access to all those extra funds. That means, if you paid an extra R200 into your bond every month, you would not only be charged less interest but all those funds would still be available to you. Unlike

How the banks’ internal client rating affects your home loan application

2012-03-07T11:00:41+02:00March 7th, 2012|Home Loan Tips|

Each bank has a system set in place which grades individuals on how well their accounts are managed as a whole. The best grading is normally reserved for those clients who have obtained a healthy balance between having a few credit accounts, as opposed to those individuals servicing too many accounts. It is advisable to limit the amount of credit profiles you have open, to approximately 4 or 5 accounts, before purchasing your first property. Although, the opposite of having too many account, is also not an option. You will need to have at least 2 accounts registered in your name to help create and build a repayment profile before applying for a home loan. Not only does the