Home Loan Tips:
A No deposit home loan is better known as a 100% Home Loan. These loans were originally designed for first time home buyers are could not afford to pay the he deposit on their new home, but banks are starting to offer 100% loans to many more customers.
Itâ€™s a combination of increase competition for home loan customers and very low interest rates. In a bid to secure a larger portion of the SA home loan market, banks are now even willing to offer you home loans greater than 100%.
This means that you no longer need to pay any deposit and all your Bond Registration Costs are also covered by the loan.
Rudi Botha, CEO of PA BetterBond, says: â€œâ€¦a very large percentage of the loans we obtained for buyers over the past three years have been for 100% or more of the purchase price â€“ 108% loans having been available to first time buyers to include the transaction costs.â€
Botha believes that customers are choosing to apply for no-deposit loans and then spend any monies they have on moving costs, renovation and new furniture or appliances.
The risks involved in take a bigger loan are much lower too, with interest rates as low as they are many home owners can comfortably afford their monthly bond repayments.
Rates are also predicted to be cut even lower later this year.
If youâ€™d like to enquire about applying for a 100% home loan from your bank, complete this short form and a Home Loan consultant to contact you with more information.