Home Loan Tips
Reviewing the current property market we consider the options – To Buy or Rent
Property prices are increasing rapidly and experts believe that although prices will slow down slightly we are not experiencing a property bubble.
While property prices are increasing, interest rates are down too.
These two key factors have lead to a rush of home loan applications being received by SAâ€™s leading mortgage providers, such as FNB Home Loans and ABSA Home Loans.
The increased number of new home owners has had a two fold effort on the property market.
More buyers, means there is a greater demand for property which pushes up price. This has left few consumers in the rental market.
So as the property ownership market flourishes the number of bargain rentals available is increasing.
Landlords are desperate to secure leases and are having to acceding to tenantsâ€™ demands to lower their rental expectations.
In short, as rental prices drop it seems wiser for the moment to seek out an apartment to rent and use those extra savings to build up a deposit for a new home.
Saving a deposit for your new home has a snow ball effort. Banks a more willing to grant you a home loan at very competitive rates if youâ€™re able to display the ability to manage your finances correctly. The lower interest rate youâ€™ll receive for this effort will result in lower monthly bond repayments and a huge saving over the period of the mortgage.