Home Loans For First Time Buyers

First Time Home Buyers Guide To Home Loans In South Africa

Home Loans For First Time Buyers Explained:

As a first time buyer looking to secure a bond for your new property, the first questions you may ask might be:

  • How much can I qualify for?
  • How can I ensure that I’ll get a best deal on my home loan ?

In recent months the major South African banks have each reintroduced 100% Home Loans, and some are even willing to offer up to 110%!
The lending or qualifying criteria for these loans do vary a bit. For instance, the 110% bond is specifically geared towards the lower income earners.

Types Of Home Loans
100 Percent Home Loans
100% bonds are available to a much wider group. These bonds are available to anyone who has a good credit history and is able to afford the full monthly bond repayment.
Read more about 100% Bonds, and 110% Home Loans.

Access Bonds
Access Bonds have become the industry standard. There types of home loans are equipped with an access facility which allows for greater control over your monthly mortgage payments.
The access bond allows you to withdraw any extra funds from your bonds. This means that you are able to pay extra into your bond every month to reduce the interest charges and then withdraw the funds whenever you need it.

How Much Can I Qualify For?
There are four major factors that determine how much you’ll qualify for.

  1. Your Income
  2. The Loan Term
  3. The Prime Interest Rate
  4. The banks’ current lending criteria

Read more here: How much Home Loan do I qualify for?

How To Ensure You’re getting The Best Deal

Whether you have a deposit or require a 100% bond, you will still be secure the best deal available.
How can you ensure that you’re getting the lowest interest rate and the full bond amount needed?

The best way to do this is to apply for a bond at each bank and compare your offerings. In the past buyers would have to visit each bank individually, but Bond Originators have since eliminated this time consuming process and replaced it with a service that is complete, unbiased and faster.

Read more here: Why use a Bond Originator secure your home loan.

Need More Help?

For more assistance with regards to applying for Home Loan finance contact one of our consultants.
Complete An Application Form Online
or Email: olen@propertyloans.co.za and Ph: 073 393 1216