Home Loan Tips
Buying a home is often the biggest financial decision you will have to make; and therefore you should consider your home loan to be one of most important parts of your overall financial plan.
Before you go out house hunting you should consider your current financial situation and from there calculate the home loan amount youâ€™ll be able to afford.
Banks and other SA home loan providers offer several kinds of mortgage products, from starter bonds which are designed to assist first-time home buyers by offering 100% loans , to highly flexible bond options which offer home owners easy access to extra funds, defer repayments or to fund home renovations.
When used corrected and wisely, your home loan can offer you many advantages.
For instance; if youâ€™re about to purchase a home which needs a few renovations, consider applying for a larger bond than you need to the initial purchase. These extra funds can be used to finance the renovations.
Besides enabling you to buy a new home or to make renovations, home loans are very useful financial tools. Consolidating high interest debts into a low interest bond account is a popular way of managing ones expenses.
Used correctly, consolidation will make your financial affair a lot simpler â€“ because you now only have one account to manage, and your total expenses would be lower because youâ€™re paying less interest.
Some Banks offer clients a â€œbucketingâ€ facility which allows them to take advantage of debt consolidation, while enabling them to payoff loans such as car finance sooner than they would a bond.
ABSA has recently launched an new home loan provide which offers these kinds of benefits.
Read more about the ABSA Gold single credit facility here