Mortgage Re-advances – a growing concern

Home Loan News:

As a result of the recent property prices increases and lowering of interest rates the number of people obtaining equity from your bonds has also raised.

By refinancing your home loan or by switching your home loan to another mortgage provider home owners are able to gain access to very low interest loans.

But, according to a report by Moneyweb, there is a growing concern over the number of re-advances being granted in South Africa.

John Savage of mortgage originator, Bond Choice, explains that there is nothing wrong with people reassessing their gearing in the market provided it is not done recklessly.

The danger in using a home loan to fund other investments – such as home improvements or the acquisition of a second property – is that people are over estimating the current value of their properties.

Read More – MoneyWeb

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