Banks Drop Interest Rates

Interest rates are at a 15 year low after the reserve bank announced a drop in interest rate of 0.5% - bringing the prime lending rate to a low 9%

Now is the time to do your sa home loans application.

Are banks still giving 104% home loans?

Do you need a home loan and don't have a deposit?

Don't dispair, banks are still giving 104% home loans subject to certain conditions and requirements.

Check out my latest video post as to what is involved.

Can You Get A 100% Home Loan?

How can you get a 100% loan from the banks. Check out my latest video in the Q & A series.

Home Loans

Home Loans and Divorce: How It Affects Your Home and your Mortgage

I don’t like writing about negative things, but the reality is that today divorce is common-place due to various factors including pressure and financial strain. When the decision is made to separate a marriage is normally a very hard and difficult time. An unfortunate aspect of a divorce is the splitting of your combined assets. This includes your home.

By getting impartial information on options about your home it will make vital decisions during this stressful time easier.

The first step is that you must to decide who, if anyone, wants to live in the house. Many times neither party wishes to stay in the home due unpleasant memories. Other times, there may not be any choice on which party will stay at the house.

I’ve written this article to help you understand what your decision will mean to you financially and where you will live.

Can you afford to move? Will you have to refinance? If you do move what can you afford?

Home Loans & Divorce: 4 CHOICES

Click to read the rest of this home loans article

My Clients Speak Out...

Have a look at what types of things clients have said about GPF Mortgage

Home Loans Made Easy

To view all my Home Loans related articles, click the link or ask my any related question on http://gpfmortgage.co.za/contactus.html


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Home Purchase and Debt Consolidation

Latest Post on Home Purchase and simultaneous Debt consolidation

Can You Trust Your Bond Originator?

I’m writing this article today because I had an interesting experience the other day. It’s happened many times before, but when it happened again I thought: "I must write about this".

Somebody phoned me and asked me if we were able to apply to banks where she had already applied.

I replied that we couldn’t because then it would be a duplicate application, but I asked why?

She explained that she had worked through the estate agent’s bond originator and that she was getting no feedback.

I got a grin on my face….

Click Here to Read the rest of : Can You Trust Your Bond Originator?

Interest Rate Hike Warning!!!!

In the latest Property Barometer newsletter, Johan Loost, property strategist at FNB has warned of possible interest rate hikes in the future.

What does that mean to you? So where to from here?

Well, he suggests that now is a time to tread with caution for a few reasons:

• Firstly, at 10% prime, history suggests that we may be at or near to the bottom of the interest rate cycle.

Interest rates will go up at some point. History also tells us that recent rate hiking cycles have been by 4 to 5 percentage points.

It is essential to be pro-active and make financial provision for the possibility of a 4-5 percentage point interest rate increase at some point in future, and if you cannot fund such an increase, rethink expenditure commitments.

• Secondly, there is the important issue of massive future hikes in Eskom tariffs in the next 2 years, and similar increases in municipal rates and other utilities’ tariff cannot be ruled out, given the need for big infrastructure upgrades in the coming years.

I would suggest that significant provision be made for such household-related
cost increases in the coming years too.

These are the comments of Johan Loos, if you require advice on your home loan or how to consolidate your debt into a current bond, don't hesitate to contact me:
http://gpfmortgage.co.za/contactus.html

TOP TIPS: Home Loans for Private Sales

Check out my latest home loans article - just click the link

Is a Home Loan Rate Cut On The Cards?

Cees Bruggemans, economist at FNB seems to think there might be a possible future interest rate cut.

In his latest newsletter he referred to the: Dollar's strapless bra starting to slide

I thought that was hillarious, but ultimately it makes sense, because he said that the rand is strengthening against the Dollar and other major currencies are following the same trend. This means we'll pay less for imports, but also earn less income on exports - nonetheless, it could mean a home loan interest rate cut.

He ends off by saying: The Dollar's strapless bra hasn't yet fallen off, possible still supported only by a thread....

So let's see what Gill Marcus and her team decides at the next monetary policy committe meeting on October 14.

If you'd like any information on SA Home Loans please don't hesitate to contact me by following the links.

Standard Bank Has Joined the 100% Party

Yes, at last, Standard bank has added it's vote to relaxing lending back to 100% for qualified buyers.

This now brings to the full all four banks' 100% home loans offering.

That being said, they have taken the same route as ABSA, and are only offering 100% loans to Standard Bank transactional account holders.

Also, this only pertains to purchases, not 2nd bonds.

So, if you are a Standard Bank client, looking for a 100% home loan, look no further, GPF Mortgage will help you secure the best home loan for your needs.

Should you need any further assistance or need more information, read some of my other articles on: http://www.gpfmortgage.co.za/

Bumpy Ride for 100% Home Loans!

If you thought you could arrive at a show house, sign the deal and all is finalized, think again. These days getting a home loan is not easy and certainly not for the faint hearted.

I'm not saying that getting a home loan is impossible, but you really have to know your stuff, or even better still, have someone who knows their onions do the deal for you.

Currently there are only 3 banks/lenders that give 100% home loans and it's not easy to get.

One late payment or arrears account on your credit profile and you're declined. You have to have a squeaky clean record to get 100%.

Fact is, while some 78% of home loan applications were successful in the 2005 and 2006 boom times, only around 45% of home loan applications are currently successful.

The amount of debt you have in relation to your income is something the banks take very very seriously. Your affordability is crucial and will make or break the approval of your home loan.

If you are thinking of buying a home in the future, call us first so that we can work out your affordability in line with the banks rules and regulations. You'll get a pretty good idea of what type of home and home loan you will be able to afford.

ABSA 100% Home Loans Returns

The ABSA 100% home loan rumour is reality.

You can now get a 100% home loan from ABSA if you are an ABSA transactional account holder. Your salary has to go into that account to qualify.

This means, that on a house of R1 000 000 you no longer need to give a deposit of R100 000 - that is a huge saving, and also makes a big difference to first time buyers.

For more information on, or to apply for home loans, contact us.

Absa Home Loans 100% Loan Rumor

There are rumor's that ABSA will also soon be giving 100% loans to their account holders again. How true that is remains to be seen.

As per my last post, it's still only FNB and Nedbank that offer 100% home loans, so if ABSA does come to the party that gives you, the client, more options to choose from.

Remember, working through a bond originator gives you the stress free way of only sending through your documents ONCE and they send it through to the various banks simultaneously.

Also remember to choose your bond originator wisely. Ask them questions. What options will they be giving you? Only the 4 major banks? A connected bond originator would always give clients an unbiased service, not only limited to the 4 major banks, but also some non-bank alternatives, like SA Home Loans.

Don't forget - ask, because you're going to be paying that loan at the end of the day and you want to know that you've had options to choose from and that you've got the best deal possible.

To apply for a home loan, including SA Home Loans, contact us today!

Which Banks Offer 100% Home Loans?

There are so many conflicting reports these days as to which banks offer 100% home loans and which don't.

Let me clear that up for you. Just keep in mind that sometimes it depends if you also have your personal bank account at that bank or not.

Absa Home Loans - On home loans of under R1.5 million, maximum loan of up to 90% if the applicant with the biggest salary banks there. Maximum 70% if you don't bank there.

If you earn under R15 000 per month (joint or single income) you can qualify for up to 110% loan - this means no deposit, PLUS all your attorney fees are covered.

Standard bank Home Loans - On home loans of under R2.5 mil, a maximum loan of up to 90% - Standard Bank have advertised that they offer 100% home loans if you work directly with them and not through an originator, but I have yet to hear of more than 1 client confirming that they got a 100% loan from Std Bank.

Under R15 000 income you can qualify for up to 104%, which is also the full purchase price plus costs.

FNB Home Loans - On home loans of under R2 mil up to 100% loans. If your income is under R15 000 you can also qualify for a up to 104% home loan

Nedbank Home Loans - up to 100% home loans if the purchase price is under R3 mil.

SA Home Loans - 95% home loans for purchases.

They also have a new offering of a 90% home loan with interest only for the first 3 years. This means better house - for the same instalment. So you get the home you really want. With EDGE, clients pay the lowest possible instalment – the interest only – for the first 3 years, then revert to a standard loan for a further 20 year period. This makes it ideal for clients who want to buy up now, knowing their income will grow to match their repayments.

For more information regarding any of the home loan products discussed, don't hesitate to contact GPF Mortgage today.

Calling all ABSA account holders

Are you an ABSA banking client looking for a home loan?

Until 30 April 2010 they'll be offering special deals for individuals looking for home loans of R500 000 - R1 500 000 (excluding building loans, investment property, vacant lant, and fixed rates)

Although they haven't disclosed what's going to be making these deals so special, I'm guessing better interest rates.

If you're one of those, don't hesitate to contact us or click here for more information on ABSA home loans

Home Loan And Debt Consolidation Tips

A cheaper debt consolidation alternative is to consolidate your high interest debt into your home loan. However, if you decided to follow this route your next goal should be to pay off your home loan debt as soon as possible.

It’s does not make financial sense to consolidate credit card debt into your mortgage loan and then to stretch out those payments over a 20-year period. Sure, it will improve your immediate cash flow, but over the long term you will lose a lot of money.

Another mistake you should avoid is to finance nonessentials like overseas holidays with your equity you have build up over time. It makes no sense for example to pay for a 2-week overseas holiday until the day you’re old and gray.

Home Loan Tips

Interest rates are on the way down and a good strategy would be to maintain your current payments. This way you can pay off your home loan quicker without it having such great impact on your lifestyle.

Instead of spending your bonus at the end of the year, why not making a lump sum payment into your bond. Since interest rates are calculated daily, you can reduce the interest you have to pay by linking your cheque account with your bond account and paying your salary into that account

Another idea is to deposit your VAT payments into your access bond which will help you to save even more on home loan interest.

For more useful and huge interest saving tips and information visit my website on: http://www.gpfmortgage.co.za/sa-home-loans.html

How do Interest Rates Affect Your Pocket?

Today, reserve bank governer, Gill Marcus, announced that the repo rate will remain unchanged at 7.00%. This means that the prime home loans rate will also remain unchanged at 10.5%

What would a cut of 0.5% mean in your pocket?

To put it in simple terms, a home loan of R500 000 at prime (10.50%) over 20 years would work out to +/-R4,948 pm (excl insurance).

If you were able to get a home loan rate of 0.50% below prime, or 10.00%, that would mean your installment would be R4,785 - a saving of R163.00

These amounts would be doubled up in the case of a R1 mil home loan.

So at the moment that home loan would cost +/- R9,897 pm, and with a 0.5% cut it would be R9,570 pm, a saving of R327.00 pm

These amounts may not seem significant, but if you take it over a year, that's a saving of R3924, and that's NOT INCLUDING INTEREST!

If you put that R327.00 back into your home loan on a monthly basis, you'll pay off your loan in 18.16 years and not 20 years.

Doesn't seem like much? Further consider this... the interest on that home loan will reduce from R1,316,051 to R1,167,953 - That's a saving of almost R150 000 over the period of the loan!

All because you put that additional R327.00 back into the bond every month.

Imagine what would happen if you made that R500?

Want more tips and tricks on how to reduce your rate on your home loan or for a refinance home loan, please don't hesitate to contact me through www.gpfmortgage.co.za/contactus.html

Banks Cutting out Discounts

Clients are reeling because some of the banks, namely Standard Bank as well as ABSA are not letting originators choose the attorneys that will register the bonds anymore.

The implications?

Many originators that have been in the business a long time have built up relationships with certain attorneys. What many have done was to have an agreement in place that if they referred a client to that attorney to attend to the bond registration the client would receive a substantial discount.

These discounts were even up to 50% of the attorney's fee, which ensured a big saving for the client.

For instance, on a R500 000 bond, if the the client got a 50% discount he would only have to pay the attorney +/- R3078, now, that amount doubles up to R6156.

You can further double up that amount on a R1 000 000 bond.

If the bank chooses the registration attorney, the originator has no relationship or agreement in place, which means the client loses out.

Where will this end?

How to Boost Your Credit score When Looking for a SA Home Loan

SA Home Loans: When looking for a home loan it is important to try to increase your credit ranking. In general, the better your credit standing, the more beneficial credit terms you'll get.

When you have had a low credit standing you'll be at the mercy of the banks who will be able to charge you interest rates way above prime.

Fix Errors On the Credit reports

The two biggest credit agencies in South Africa namely, Trans Union and Experian. So the first thing you should do is to get a free credit report and search for for errors in your record. You should act right away to get it fixed, because if you apply for any kind of SA home loans your lender isn't just going to take your word for it that there are mistakes on your credit report.

You should not Apply For Debt When Applying For SA Home Loans

Do not make the mistake of running around and applying for credit cards or car financing until after your home loan is approved. Remember that looking for new credit temporarily brings down your credit score.

Pay Your Debt That's Near The Limit

Credit balances which are over 50% of your credit limit brings down your credit score. In general, try and keep balances below 50% but for optimum benefit try to keep balances below 30% .

To put it differently, if your credit limit is R10, 000, attempt to bring the balance right down to R3, 000. This will help to boost your credit score. Your credit score will increase immediately once your balance is decreased.

For the best results one could clear your credit card debt in full each month. However, don't close your accounts, since that may lower your credit score. What’s key here is the % of your total credit which you're using. The lower it is the better.

Pay Your Accounts on Time

Please don't make late payments. Paying your bills before its due is one of the simplest ways to increase your credit standing. It shows the bank that you take your responsibilities seriously and that they can expect to be paid on time also if they grant you mortgage finance.

So, its not that impossible to give your credit rating a boost, but the biggest thing is that you have to take steps .