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.
Showing posts with label fnb home loans. Show all posts
Showing posts with label fnb home loans. Show all posts
Thursday, April 1, 2010
Tuesday, February 2, 2010
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
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
Tuesday, January 26, 2010
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
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
Wednesday, December 2, 2009
FNB Home Loans – How can You Guarantee Approval?
FNB Home Loans – Why would anybody specifically choose FNB Home Loans for their bond? Ask any reputable mortgage broker and they will tell you that FNB has a fast turn around time, good service and a fair lending policy.
If you want to apply for a FNB home loan keep these in mind:
FNB Home Loans Tip 1 – Always Pay Debts on Time
When applying for a home loan you have to have a clear payment profile. All the banks, including the FNB home loans department, will check your ITC report with the two major credit bureaus, namely TransUnion and Experian.
So, what do you have to do to maintain a clear payment profile? There are two major factors, firstly you need to pay the full amount due every month, and secondly the payment must be made on time, meaning, on or before the due date.
If you don’t adhere to this you will be listed as a slow or erratic payer, which lowers your credit score and increases your risk to the banks.
FNB Home Loans Tip 2 – Stop Making More Debt
When applying for a home loan, the last thing you want to do is to go and make more debt.
Whenever you apply for debt, that company does a credit check, and every time somebody does a credit check on you, your credit scoring decreases.
This may show the bank that you are not in control of your spending habits – FNB home loans strictly stays within the boundaries of the National Credit Act and will not grant you a bond.
FNB Home Loans Tip 3 – Know That There Will Be Costs
What people don’t realize is that there are significant costs involved when purchasing a loan. At date of writing this article, only a few banks offer 100% home loans, FNB home loans being one of them. This has however never disappeared because affordable housing of less than R450k has always been able to get up to 104% bonds.
You must realize that, depending on which bank you approach, a deposit of between 5-10% (FNB Home Loans offers a 100% bond) of the purchase price and you must still cover the legal fees.
If you buy a house for R950 000 this could add up to +/- R90 000 which is quite a large of money if you weren’t aware of it.Always ask as many questions as possible and get a written quotation from the attorneys on what the total cost would be so that you know where you stand.
If you want to apply for a FNB home loan keep these in mind:
FNB Home Loans Tip 1 – Always Pay Debts on Time
When applying for a home loan you have to have a clear payment profile. All the banks, including the FNB home loans department, will check your ITC report with the two major credit bureaus, namely TransUnion and Experian.
So, what do you have to do to maintain a clear payment profile? There are two major factors, firstly you need to pay the full amount due every month, and secondly the payment must be made on time, meaning, on or before the due date.
If you don’t adhere to this you will be listed as a slow or erratic payer, which lowers your credit score and increases your risk to the banks.
FNB Home Loans Tip 2 – Stop Making More Debt
When applying for a home loan, the last thing you want to do is to go and make more debt.
Whenever you apply for debt, that company does a credit check, and every time somebody does a credit check on you, your credit scoring decreases.
This may show the bank that you are not in control of your spending habits – FNB home loans strictly stays within the boundaries of the National Credit Act and will not grant you a bond.
FNB Home Loans Tip 3 – Know That There Will Be Costs
What people don’t realize is that there are significant costs involved when purchasing a loan. At date of writing this article, only a few banks offer 100% home loans, FNB home loans being one of them. This has however never disappeared because affordable housing of less than R450k has always been able to get up to 104% bonds.
You must realize that, depending on which bank you approach, a deposit of between 5-10% (FNB Home Loans offers a 100% bond) of the purchase price and you must still cover the legal fees.
If you buy a house for R950 000 this could add up to +/- R90 000 which is quite a large of money if you weren’t aware of it.Always ask as many questions as possible and get a written quotation from the attorneys on what the total cost would be so that you know where you stand.
Tuesday, October 6, 2009
Standard Bank Home Loans Made Easy
When you are in the process of applying for a home loan, it is difficult to know where to turn. The various banks are offering various products. Let's have a quick look at what Standard Bank Home Loans are offering.
If you are purchasing a new property you can either apply for a Dream Start home loan or a Ordinary loan.
Dream Start: Standard Bank Home Loans is trying to make it easier for, what they refer to as, “entry level income earners”. You fall under this category if you earn a salary of between R1 500 and R6 000 per month. You can apply for this product whether you are buying a new home or building a new home.
If your single or joint income is more than R6 000 per month, you would apply for an Ordinary home loan. You can choose between a 20 or 30 year term. In recent times we are seeing very sudden changes with regards to deposits needed when buying a new property. Currently, Standard Bank Home Loans department will require a 5% deposit.
Standard Bank Home Loans are also offering something called Affordable Housing. This means that if your joint gross monthly income is less than R15 142 you can apply for a bond of up to 100% of the purchase price, no deposit needed. In addition to this, if you are a first time buyer you can apply for a 104% bond. This means no deposit needed, and the fees involved will also be covered by the bond.
You can apply for an Access Bond, whether you are applying for a Standard Bank Home Loans Dream Start or an Ordinary home loan. This will enable you to pay off your bond quicker, and save large amounts on the interest rate. This will also give you access to additional funds paid into the account, or funds that you haven't withdrawn from the account.
However, you need to have a Standard Bank account to apply for an Access Bond.
You can choose a variable rate or a fixed rate, when applying for a bond with Standard Bank Home Loans. A variable rate will let you benefit if the prime rate is lowered. However, if the rate increases, so will your installments. A fixed rate will give you a fixed installment. So even if the prime rate goes up, your installment will remain the same. But on the other hand, if the prime rate goes down, you will not benefit from this.
If you want to apply for a bond with Standard Bank Home Loans you can either apply via Standard Bank's website, call the home loan's department, apply at one of the branches, or, you can apply through a professional bond originator who will do the application on your behalf.
Well, I know that is a lot for you to take in so I am happy to spend some time with you and answer any questions you have about getting a Standard Bank Home Loans and making sure your SA Home Loan. You are welcome to contact my office at 086 110 6204 or send me a personal email at: info@gpfmortgage.co.za
If you are purchasing a new property you can either apply for a Dream Start home loan or a Ordinary loan.
Dream Start: Standard Bank Home Loans is trying to make it easier for, what they refer to as, “entry level income earners”. You fall under this category if you earn a salary of between R1 500 and R6 000 per month. You can apply for this product whether you are buying a new home or building a new home.
If your single or joint income is more than R6 000 per month, you would apply for an Ordinary home loan. You can choose between a 20 or 30 year term. In recent times we are seeing very sudden changes with regards to deposits needed when buying a new property. Currently, Standard Bank Home Loans department will require a 5% deposit.
Standard Bank Home Loans are also offering something called Affordable Housing. This means that if your joint gross monthly income is less than R15 142 you can apply for a bond of up to 100% of the purchase price, no deposit needed. In addition to this, if you are a first time buyer you can apply for a 104% bond. This means no deposit needed, and the fees involved will also be covered by the bond.
You can apply for an Access Bond, whether you are applying for a Standard Bank Home Loans Dream Start or an Ordinary home loan. This will enable you to pay off your bond quicker, and save large amounts on the interest rate. This will also give you access to additional funds paid into the account, or funds that you haven't withdrawn from the account.
However, you need to have a Standard Bank account to apply for an Access Bond.
You can choose a variable rate or a fixed rate, when applying for a bond with Standard Bank Home Loans. A variable rate will let you benefit if the prime rate is lowered. However, if the rate increases, so will your installments. A fixed rate will give you a fixed installment. So even if the prime rate goes up, your installment will remain the same. But on the other hand, if the prime rate goes down, you will not benefit from this.
If you want to apply for a bond with Standard Bank Home Loans you can either apply via Standard Bank's website, call the home loan's department, apply at one of the branches, or, you can apply through a professional bond originator who will do the application on your behalf.
Well, I know that is a lot for you to take in so I am happy to spend some time with you and answer any questions you have about getting a Standard Bank Home Loans and making sure your SA Home Loan. You are welcome to contact my office at 086 110 6204 or send me a personal email at: info@gpfmortgage.co.za
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