Is Getting A Home Loan Today Possible if you have bad debt?

Getting a loan approved today is difficult especially when you have a history of bad financing. But a loan is a loan and it’s something that’s necessary today for our plans to push forward.

Do we have the chance of getting that money if we have bad debts? 

5 Tips to Do When Applying for a Loan

All big events requires an equal time for preparation. The same goes when applying for home loans. For many people, getting your home loan approved is a challenge and indeed it is. Getting financial help today undergoes incredible scrutiny.

So we cannot afford to sleep on the wheel .We have to help our application gain a favorable eye. We have to be prepared ourselves.

Committing to a home mortgage requires incredible sacrifice and emotional fortitude. Everything will be a challenge. So in order to help ourselves, in order to not waste our time here some quick tips to get us going with our loan application.

There are my 5 Home Loan Tips often Overlooked

Sabric says Beware of home loan scams

Source: www.news24.com

Johannesburg - Beware of scamsters offering to bail out debt-ridden home owners, the SA Banking Risk Information Centre (Sabric) said on Monday.

"The banks are concerned about the relentless offers doing the rounds," said Sabric CEO Kalyani Pillay.

"These offers are, in actual fact, calculated scams that may result in homeowners losing their properties."

Distressed home owners should discuss repayment options with their banks rather than taking up offers promising bail-outs.

There were numerous variations of the property rescue scam and they often appeared to involve a legitimate consultant with a listed telephone number and website.

"They advertise their services through newspapers and outdoor signage, and they also use court foreclosure notices in newspapers to source details of their victims," Pillay said.

Consumers taking up their offers often ended up in worse debt or even losing their homes, she said.

In one variation of the scam, fraudsters offer to bail out the home owner who unknowingly signs documents handing over his property for sale.

Home owners may be told if they surrendered the property title and stayed on as renters, they could buy back the property once the matter has been "fixed".

Instead, they end up losing the property.

Sabric advised home owners not to do business with companies or individuals saying they could stop a foreclosure process or telling them not to contact their bank.

Consumers should not ignore letters from their bank.

They should also not agree to a repayment program without making sure the bank had been informed and agreed to it, Pillay said.

If you're concerned about your situation and want some home loans advise, don't hesitate to contact me on www.gpfmortgage.co.za

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/

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.

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

Are Standard Bank Home Loans Still Being Approved

Standard Bank: Are they still approving home loans? The short answer would be yes. The home loans department has been inundated with bond applications since they re-introduced the use of mortgage originators to their panel.

During the early part of the year Standard Bank Home Loans chose to end their relationship with all originators. After lengthy negotiations they eventually agreed to re-introduce mortgage originators to the value offering they offer clients.

Mortgage originators play an integral role in the home loans business received from the banks and can also help to sift through transactions that should never have been presented to banks.

Applying for a home loan through a bond originator will also help you because you don’t have the stress of applying to all the banks and follow up daily. To add to this, you only have your home loan consultant to speak to, not a different person every time you phone.

Applying for a home loan through Standard Bank is also a much smoother process with a mortgage originator because they will submit the application electronically directly onto the bank’s home loan software.

The home loans department is now up to date with their applications and are processing them quickly.

For more information on Standard Bank Home Loans, visit our website.

Standard Bank Home Loans for First Time Buyers

Standard Bank Home Loans: Millions dream of owning their own home. You can get your first time buyer home loan fast and realize the dream of owning your home with the assistance of an expert home loan consultant with banks competing to get your business.

First time buyers are often caught off guard at how complex the home loan approval process. If you’re looking for a home loan and you’ve never owned a property there are some things you can look at to make the home loan process less complicated.

Standard Bank Home Loans – Educate Yourself

First time buyers must educate themselves on the buying process before making contact with a home loan consultant. There are so many options when getting a first time buyer home loan. There are friendly and helpful home loan professionals that can assist you with making the correct decisions.

You must shop around before trying to apply for a first time buyer home loan. Find out if there are deposit requirements and find out the repayment terms that will suite your budget. You have the option of a 20, 25 or 30 year term and can choose a variable or fixed interest rate.

Often it’s difficult to choose which home loan is the right one for you because there are so many options available. You need to take your long-term goals into consideration, how long you’re planning to stay in the home and what your financial situation is at the moment. A professional and well-informed home loan consultant can assist and give you advice in showing you which would be the one best suited for you.

Use a Broker to Help You With Your Standard Bank Home Loan

The application for a first time buyer home loan doesn’t have to be nerve-wracking experience. There are so many first time buyers that have had invaluable assistance from home loan consultants ready to point you in the direction of a bank willing to give you a home loan.

Applying also doesn’t have to be difficult. If you’ve chosen a reputable home loan consultant, let them help you make good decisions for your unique situation. Many home loan consultants will let you apply online, which is a fast and easy way to get your home loan approved.

So, if you let a Standard Bank home loans broker assist you the process needn’t be stressful or frustrating.

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