I wanted to share with you a really touching appreciation letter I received from a client this morning:
Dear Zulika
Once again ,I would like to thank your for the exceptional service that you render.I would definitely recommend you to any first time buyer so that this smooth transition leaves them with no stone unturned and with peace of mind of being in safe hands and achieving the best deal possible.With your words of wisdom & insights of how the banks operate is the best security a person could ask for especially when the nitty gritty is concerned and a first time buyer could easily be mislead.You definitely have the highest of abilities to help people aquire a dream of owning a home of their own.
Regards
D.Chetty
So, if you need a home loan and you would like to use our service, please do not hesitate to contact us.
Showing posts with label home loan. Show all posts
Showing posts with label home loan. Show all posts
Friday, January 21, 2011
Monday, January 3, 2011
How to Get a Home Loan Without Using a Bond Originator
In many circles bond originators are in the same popularity category as lawyers and accountants, therefore many people these days are seeking to rather go directly to the banks so that they have more "control" over the application.
Below are the tasks involved in obtaining home loans on your own:
1) You would need to complete at least 5 different application forms if you are hoping to get a fair chance at choosing a competitive package
1.1) This means that you would either physically need to drive or walk from one bank to the other, or, for those who are more Internet savvy, complete online applications.
2) If you have opted for the "going into each bank" route, you would also need to have originals or copies of originals of your bank statements, ID and latest payslip.
2.1) If you have opted for the online application you are going to have to send 5 different faxes and hope and pray they actually receive it. In most cases you are going to have to send your faxes.
3) Phone each bank each day and follow up on the application. It usually takes an average of 4-5 working days to process, so that means you're going to have to phone each bank each day for 4 days, that's 20 phone calls. You also better hope that the home loans department doesn't cut you off, ask you to call later because they're offline, or that they keep you holding so long you HAVE to call again.
4) Should there be complications, or if your application is declined, you have to deal with a call centre, so, because you don't speak to the same person every time you have to explain the story over and over again - hopefully that's not the case at all the banks.
The above is NOT an exaggeration.
The bottom line is, if you don't have a private banker looking after your needs, and in most cases that doesn't even help, it is better to deal with a reputable bond originator that is experienced and is committed to assisting you.
Their service is free and they go through the hassles explained above on your behalf.
If you want to apply for a hassle free home loan then don't hesitate to contact us today on: info[at]gpfmortgage.co.za (replace the [at] with @)
Below are the tasks involved in obtaining home loans on your own:
1) You would need to complete at least 5 different application forms if you are hoping to get a fair chance at choosing a competitive package
1.1) This means that you would either physically need to drive or walk from one bank to the other, or, for those who are more Internet savvy, complete online applications.
2) If you have opted for the "going into each bank" route, you would also need to have originals or copies of originals of your bank statements, ID and latest payslip.
2.1) If you have opted for the online application you are going to have to send 5 different faxes and hope and pray they actually receive it. In most cases you are going to have to send your faxes.
3) Phone each bank each day and follow up on the application. It usually takes an average of 4-5 working days to process, so that means you're going to have to phone each bank each day for 4 days, that's 20 phone calls. You also better hope that the home loans department doesn't cut you off, ask you to call later because they're offline, or that they keep you holding so long you HAVE to call again.
4) Should there be complications, or if your application is declined, you have to deal with a call centre, so, because you don't speak to the same person every time you have to explain the story over and over again - hopefully that's not the case at all the banks.
The above is NOT an exaggeration.
The bottom line is, if you don't have a private banker looking after your needs, and in most cases that doesn't even help, it is better to deal with a reputable bond originator that is experienced and is committed to assisting you.
Their service is free and they go through the hassles explained above on your behalf.
If you want to apply for a hassle free home loan then don't hesitate to contact us today on: info[at]gpfmortgage.co.za (replace the [at] with @)
Saturday, August 28, 2010
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
http://ezinearticles.com/?expert=Zulika_Van_Heerden
http://ezinearticles.com/?expert=Zulika_Van_Heerden
Monday, July 26, 2010
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/
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/
Monday, June 21, 2010
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.
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.
Wednesday, May 19, 2010
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.
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.
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, January 20, 2010
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?
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?
Tuesday, January 12, 2010
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 .
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 .
Monday, December 21, 2009
When last have you tried to apply for Home Loans?
Taken From: http://ezinearticles.com/?expert=Zulika_Van_Heerden
If you have ever wanted to apply for a home loan, now is potentially a really a difficult time.
Why do I say so you ask? Well with the recession just “officially” over, the banks have still not changed their risk-averse attitude, which means they’re not easily granting loans.
Firstly, before you apply for home loans, make sure you have a squeaky clean credit record. Any sniff of anything negative will cause the banks to decline the application.
Secondly, make sure you know which bank requires what percentage deposit. And if you do need one, make sure you have enough. Sometimes they will even ask for proof of the funds before they start to work on the application.
The application itself isn’t difficult, but it is the way the information is presented and what you say in your motivation.
The motivation is one of the most essential parts of the application as it “speaks” to the credit manager without him or her just seeing the black and white figures on the page.
If you approach a reputable mortgage broker for a home loan you would not need to worry about this because they would do it all for you.
Home loans are essential for home ownership if you do not have the cash to purchase a house. Essentially it’s where the bank gives you money to buy an appreciating (increasing in value) asset.
So, in conclusion, don’t take on the hassle on your own, let a mortgage broker do the legwork for you.
If you need more information about home loans or how to apply please visit our website at http://www.gpfmortgage.co.za
If you have ever wanted to apply for a home loan, now is potentially a really a difficult time.
Why do I say so you ask? Well with the recession just “officially” over, the banks have still not changed their risk-averse attitude, which means they’re not easily granting loans.
Firstly, before you apply for home loans, make sure you have a squeaky clean credit record. Any sniff of anything negative will cause the banks to decline the application.
Secondly, make sure you know which bank requires what percentage deposit. And if you do need one, make sure you have enough. Sometimes they will even ask for proof of the funds before they start to work on the application.
The application itself isn’t difficult, but it is the way the information is presented and what you say in your motivation.
The motivation is one of the most essential parts of the application as it “speaks” to the credit manager without him or her just seeing the black and white figures on the page.
If you approach a reputable mortgage broker for a home loan you would not need to worry about this because they would do it all for you.
Home loans are essential for home ownership if you do not have the cash to purchase a house. Essentially it’s where the bank gives you money to buy an appreciating (increasing in value) asset.
So, in conclusion, don’t take on the hassle on your own, let a mortgage broker do the legwork for you.
If you need more information about home loans or how to apply please visit our website at http://www.gpfmortgage.co.za
Monday, November 23, 2009
Picking the Best SA Home Loan for You
SA Home Loans: When it comes to purchasing a home, you are probably very excited about the fact that you will be starting a new chapter of your life. Everything happens so fast sometimes that you might think that there will barely be any time to read through your loan documents.
You could not be more wrong though. Even though those documents are going to be long and drawn out, it is extremely important to make sure that you or your attorney go through them with a fine tooth comb.
Before you even get to that part though, you will want to make sure that you are even applying for the correct loan to begin with. There are a few types of home loans out there and it is important to make sure that you understand the basics of each in order to make sure that you are making the right decision for you and your family.
Going with the wrong loan could cause you to default on your loan and lose your house. Since this is not something that you want to have happen, it is important to make sure that you are taking the proper precautions from the start.
What Types of SA Home Loans Are There.
The loan that many people consider to be the best option is the fixed rate mortgage. This is a pretty straightforward loan. You have a set interest rate, which will never change for the period it’s fixed, and a set number of years to repay the debt.
Another major loan product out there would be the variable rate mortgage. This is a risky loan in a rising interest rate market because if the prime interest rate goes up, the mortgage company will also begin to increase your interest rate.
This means that you can never predict what your payments are going to be in the future. Many people have found themselves in foreclosure simply because the payments adjusted to an amount that was too much to handle.
Interest only home loans are another option. The thing is though, during the first couple of years of the mortgage, none of your payments goes to the principal balance. If you plan on selling you home within the first couple of years then your payoff amount is basically going to be the same as the first day you took out the loan.
As you can see, there are a few different options out there for you. You really have to look through them all to make sure that you are getting the right type of loan for your needs.
If you need any more information about SA Home Loans or other home loans related questions fo not hesitate to contact us.
You could not be more wrong though. Even though those documents are going to be long and drawn out, it is extremely important to make sure that you or your attorney go through them with a fine tooth comb.
Before you even get to that part though, you will want to make sure that you are even applying for the correct loan to begin with. There are a few types of home loans out there and it is important to make sure that you understand the basics of each in order to make sure that you are making the right decision for you and your family.
Going with the wrong loan could cause you to default on your loan and lose your house. Since this is not something that you want to have happen, it is important to make sure that you are taking the proper precautions from the start.
What Types of SA Home Loans Are There.
The loan that many people consider to be the best option is the fixed rate mortgage. This is a pretty straightforward loan. You have a set interest rate, which will never change for the period it’s fixed, and a set number of years to repay the debt.
Another major loan product out there would be the variable rate mortgage. This is a risky loan in a rising interest rate market because if the prime interest rate goes up, the mortgage company will also begin to increase your interest rate.
This means that you can never predict what your payments are going to be in the future. Many people have found themselves in foreclosure simply because the payments adjusted to an amount that was too much to handle.
Interest only home loans are another option. The thing is though, during the first couple of years of the mortgage, none of your payments goes to the principal balance. If you plan on selling you home within the first couple of years then your payoff amount is basically going to be the same as the first day you took out the loan.
As you can see, there are a few different options out there for you. You really have to look through them all to make sure that you are getting the right type of loan for your needs.
If you need any more information about SA Home Loans or other home loans related questions fo not hesitate to contact us.
Monday, August 24, 2009
Fixed & Variable Interest Rates
When choosing a mortgage loan most people focus on the interest rate more than on any other factor of the loan.
The lowest interest rate, however, does not always mean you pay less money.
Hidden fees, rising interest rates or prepayment penalties can cost you a fortune over the term of the loan.
Understanding when to recognize a bad Mortgage loan may save you a lot of money in the long run.
Variable Rate Mortgages (VRMs)
Variable Rate Mortgages make buying a home easier, especially for first-time home buyers, but you have to understand what you are agreeing to.
Most VRMs start out with a low introductory interest rate that can climb as interest rates go up.
Unless you are prepared to pay a higher payment later on this type of Mortgage can turn out to be dangerous for you.
It is especially difficult for those who can barely afford the loan to begin with.
Prepayment penalty
Paying off your Mortgage loan early can save you thousands of rands in interest but not if
there is a prepayment penalty clause in your contract.
Make sure there is no such clause before you sign your loan papers otherwise the bank can charge you enormous fees for paying off your loan.
Most people don't think they can ever pay off a Mortgage loan early at the onset of the loan but your circumstances could change. It would be a shame to be penalized for trying to save yourself some money.
Lower interest rates
If you are being offered an extremely low interest rate then you should investigate why.
Ask for a quote so you can see what the closing costs (initiation & legal fees, insurance etc.) will be.
Many times a lender will add exorbitant closing fees to a loan to make up for the lower interest rate.
High interest rates
If you know your credit score is good and you are still being quoted higher than normal interest rates then don't take the first loan that comes your way.
Shop around. Do your homework and make sure you know what the current prime rate is and the rates of several lenders.
A home Mortgage loan is a very long commitment and you don't want to make that commitment with the wrong lender...
The lowest interest rate, however, does not always mean you pay less money.
Hidden fees, rising interest rates or prepayment penalties can cost you a fortune over the term of the loan.
Understanding when to recognize a bad Mortgage loan may save you a lot of money in the long run.
Variable Rate Mortgages (VRMs)
Variable Rate Mortgages make buying a home easier, especially for first-time home buyers, but you have to understand what you are agreeing to.
Most VRMs start out with a low introductory interest rate that can climb as interest rates go up.
Unless you are prepared to pay a higher payment later on this type of Mortgage can turn out to be dangerous for you.
It is especially difficult for those who can barely afford the loan to begin with.
Prepayment penalty
Paying off your Mortgage loan early can save you thousands of rands in interest but not if
there is a prepayment penalty clause in your contract.
Make sure there is no such clause before you sign your loan papers otherwise the bank can charge you enormous fees for paying off your loan.
Most people don't think they can ever pay off a Mortgage loan early at the onset of the loan but your circumstances could change. It would be a shame to be penalized for trying to save yourself some money.
Lower interest rates
If you are being offered an extremely low interest rate then you should investigate why.
Ask for a quote so you can see what the closing costs (initiation & legal fees, insurance etc.) will be.
Many times a lender will add exorbitant closing fees to a loan to make up for the lower interest rate.
High interest rates
If you know your credit score is good and you are still being quoted higher than normal interest rates then don't take the first loan that comes your way.
Shop around. Do your homework and make sure you know what the current prime rate is and the rates of several lenders.
A home Mortgage loan is a very long commitment and you don't want to make that commitment with the wrong lender...
Friday, June 12, 2009
100% Home Loans are Back!
Yes they are, but were they ever gone?
It was the headline news I saw on a lamppost yesterday of one of our leading local newspapers.
100% Home loans were never gone I thought to myself, but there are restrictions. I investigated and came to the conclusion that they were also talking about affordable housing.
I knew that these bonds had never disappeared, but it seems that most people didn't, and with that headline all home owners were thinking that they could now also get 100% home loans.
I'm sorry to say but that's not the case - unfortunately newspapers write headlines in such a way that you'll buy their paper.
100% home loans are only available for those buying in an affordable housing bracket.
What is affordable housing?
Affordable housing constitutes home purchases under R350 000
3 out of the 4 major lenders still grant 100% bonds in this segment of the market but some also have an income restriction.
Purchasers that qualify to buy in this market will still have to pay for their transfer fees and bond registration fees.
But no transfer duty is payable for a purchase price under R500 000
If you just asked yourself that question you would be correct.
But if you look closely I said transfer fees, not transfer duty.
Transfer duty to SARS is exempt for purchases under R500 000, but there is still a transfer fee payable to the attorney to do the transfer of the property.
If you want to know more about home loans, how much you qualify for or what all the costs involved would be, please go to: http://www.gpfmortgage.co.za for more information.
It was the headline news I saw on a lamppost yesterday of one of our leading local newspapers.
100% Home loans were never gone I thought to myself, but there are restrictions. I investigated and came to the conclusion that they were also talking about affordable housing.
I knew that these bonds had never disappeared, but it seems that most people didn't, and with that headline all home owners were thinking that they could now also get 100% home loans.
I'm sorry to say but that's not the case - unfortunately newspapers write headlines in such a way that you'll buy their paper.
100% home loans are only available for those buying in an affordable housing bracket.
What is affordable housing?
Affordable housing constitutes home purchases under R350 000
3 out of the 4 major lenders still grant 100% bonds in this segment of the market but some also have an income restriction.
Purchasers that qualify to buy in this market will still have to pay for their transfer fees and bond registration fees.
But no transfer duty is payable for a purchase price under R500 000
If you just asked yourself that question you would be correct.
But if you look closely I said transfer fees, not transfer duty.
Transfer duty to SARS is exempt for purchases under R500 000, but there is still a transfer fee payable to the attorney to do the transfer of the property.
If you want to know more about home loans, how much you qualify for or what all the costs involved would be, please go to: http://www.gpfmortgage.co.za for more information.
Friday, May 22, 2009
Mortgage Lenders Are Tightening the Belts
Due to the global financial crisis mortgage lenders has been forced to review their lending policy. The banks are also feeling the crunch, and have had to make some tough decisions.
After finding that many clients are battling to service their mortgages the banks have had to repossess more and more properties. The problems increase when the mortgage lenders have to sell off these properties at a lower price than the owner’s outstanding debt.
Due to dwindling market prices, banks often find it difficult to recover the existing debt. If this happens once it won’t make such a big difference, but with increasing repossessions at a market that is deflated, it will hurt the bank in their bank vault.
Drastic measures had to be taken.
Instead of offering bonds of up to 108% of the purchase price, a first time buyer that needs a home purchase loan is now required to have a deposit of 10-20% of the purchase price. In addition, the buyer need to have sufficient funds to cover any fees involved in buying a property. This will ensure that the bank will be able to recover the full outstanding debt, should they have to go down that route.
This, in conjunction with more responsible lending and increasing interest rates, is making it more difficult for first time buyers to enter the property market. With more properties being on the market, but fewer potential buyers, will cause the purchase prices to drop.
Therefore, even though we are going through a global financial slump, with many, including mortgage lenders, fighting for their survival, there is light at the end of the tunnel. This is the opportune time to pick up bargains on the property market.
To apply for a home purchase loan, contact us and we'll be glad to assist: www.gpfmortgage.co.za
Tuesday, May 19, 2009
Home Loans – Step by Step
Owning your own home is very desirable. However, very few have sufficient funds to buy property cash, so they will turn to a financial institution for a loan. The loan will be given with the property as surety. So what are the different steps when purchasing a property using a home loan?
Step 1
Find out how much you can qualify for. Lenders will generally limit the amount you qualify for by only allowing you to use 30% of your gross income for the monthly bond instalment. This means you will be limited in the amount you can qualify and apply for.
So to avoid disappointment, first find out how much you can qualify for. Contact a GPF Mortgage to assist you with this.
Step 2
Start looking around for a property in your price class. When you have found a property you like, sign an offer to purchase.
Step 3
The offer to purchase will be presented to the seller, who will either accept or decline it. If the seller accepts the offer it is time to contact GPF Mortgage again.
Step 4
All documentation needed for the home loan application will be compiled and submitted to a financial institution.
Step 5
The financial institution will scrutinize the application, and valuate the property.
Step 6
The bank will make a decision regarding the loan application based on risk grade of applicant, affordability, and the value of the property.
Step 7
If everything is satisfactory to the bank, a Final Approval will be issued.
Step 8
Transfer and bond registration attorneys will be issued with instructions to transfer the property over to the seller’s name, and to register the bond.
Step 9
Both set of attorneys (in some instances the transfer attorney and the registration attorney can be the same) will contact client to arrange for him/her to sign the legal documentation.
Step 10
All documentation will be sent to the Deeds Office for registration of both bond and property transfer.
Step 11
The first monthly bond instalment will be due within 30 days of registration date
Step 12
The attorney will send the title deed and the bond documents to the bank for safekeeping.
You are now the proud owner of your own home.
To apply for a loan you will have to fill out a short application form. You will then receive a FREE quote from well established, nationally recognized lenders. You do not need to decide now whether the loan is for you.
Just apply and compare the repayments to your current situation. There is no obligation on your part. If you decide that it is not for you, you simply do not have to accept the offer. You have nothing to lose and everything to gain.
Step 1
Find out how much you can qualify for. Lenders will generally limit the amount you qualify for by only allowing you to use 30% of your gross income for the monthly bond instalment. This means you will be limited in the amount you can qualify and apply for.
So to avoid disappointment, first find out how much you can qualify for. Contact a GPF Mortgage to assist you with this.
Step 2
Start looking around for a property in your price class. When you have found a property you like, sign an offer to purchase.
Step 3
The offer to purchase will be presented to the seller, who will either accept or decline it. If the seller accepts the offer it is time to contact GPF Mortgage again.
Step 4
All documentation needed for the home loan application will be compiled and submitted to a financial institution.
Step 5
The financial institution will scrutinize the application, and valuate the property.
Step 6
The bank will make a decision regarding the loan application based on risk grade of applicant, affordability, and the value of the property.
Step 7
If everything is satisfactory to the bank, a Final Approval will be issued.
Step 8
Transfer and bond registration attorneys will be issued with instructions to transfer the property over to the seller’s name, and to register the bond.
Step 9
Both set of attorneys (in some instances the transfer attorney and the registration attorney can be the same) will contact client to arrange for him/her to sign the legal documentation.
Step 10
All documentation will be sent to the Deeds Office for registration of both bond and property transfer.
Step 11
The first monthly bond instalment will be due within 30 days of registration date
Step 12
The attorney will send the title deed and the bond documents to the bank for safekeeping.
You are now the proud owner of your own home.
To apply for a loan you will have to fill out a short application form. You will then receive a FREE quote from well established, nationally recognized lenders. You do not need to decide now whether the loan is for you.
Just apply and compare the repayments to your current situation. There is no obligation on your part. If you decide that it is not for you, you simply do not have to accept the offer. You have nothing to lose and everything to gain.
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