SA HomeLoan Tips:
With the festive season fast approaching, you’re most likely preparing for a few weeks of big spending. Whether it is for gifts or holiday trips most people look towards their credit cards and personal loans to finance these expenses – this is often a huge mistake.
We all know that personal loans and credit cards are high interest – short term debts, which can quickly build up and become a mountain to steep for many of us to overcome.
Here’s how you can get the Cash you need and avoid those high interest rates:
For once your home loan can actually work for you. You’ve been paying off your mortgage for years and your property value has most probably increased substantially in this time.
With you outstanding Bond amount far lower than the current market value of your property, you have a perfect opportunity to apply for a mortgage re-advance or further bond.
Here’s why a mortgage re-advance is a the smarter move:
Bigger loan amounts
The maximum loan size is based on your current property value, so getting a loan amount of over R100 000 is much easier if there’s enough value in the property.
Pay interest that is lower than Prime – not higher
Credit Cards and Personal Loans are high interest debts.Your home loan is a very low interest debt which means you pay less for a bigger loan amount
Pay it off over a longer term to lower your monthly repayments
Credit Cards and Personal Loans are short term debts, but your home loan can be paid off over 30 years which means your monthly repayments are smaller and easier to manage.