News

Home loans for government employees in South Africa

Article summary

  • TheGovernment Employees Housing Scheme (GEHS) enables employees of the SouthAfrican Government to own their own houses at a much more affordable rate.
  • Governmentemployees enrolled with the GEHS may access such a home loan throughlenders who similarly participate in the scheme.
  • Despitethe SA Government being considered a reliable employer, a qualified bondoriginator is still advised to take you through the home loan applicationprocess.

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The importance of reading your title deed

Article summary

  • Titledeeds are important legal documents used as evidence of proof of ownershipof a home or piece of land.
  • Ifthere is a bond on the property then the title deeds will be kept by thelender or bank and only returned to the owner once the home loan has beenfully paid.
  • Propertyburdens, or obligations to the property that need to be met, as well asdetails of joint ownership will be included in the transfer deeds.
  • Alawyer will be needed if the title deeds are changed and the lenders andco-owners will have to agree to the changes, too.

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The tech feature to look for when buying a new house

Article summary:

  • A property that already has smart tech installed is a bonus if you're on the hunt for a new house.
  • Buyers are prepared to pay more for technologies that save time and money, with cutting the cost of utility bills and enhancing security among the biggest incentives.
  • The top tech prospective buyers should be on the look out for includes fibre-optic cable, solar panels, a smart security alarm and thermostat, and sensor technology.

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How to tell the difference between a buyers' and a sellers' market

Article summary:

  • Supply and demand of housing influences the property market, which then determines whether it is a buyers' or a sellers' market.
  • Conditions can vary widely from one region to the next and often cycle from one type of market to the other.
  • Gain insight into the current market by checking the local press and online resources, and talking to estate agents and those who've either bought or sold a home recently.

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What you need to know before signing an offer to purchase

Article summary:

  • A purchase offer is a binding contract; once you sign it, you cannot easily change it.
  • As a prospective buyer, you should make sure your finances are in order and obtain bond pre-approval before making an offer.
  • Read the purchase agreement carefully to see what's included in terms of fixtures (attached to the property) and chattels (not permanently attached).
  • While the seller should disclose all known “faults”, it's still important to have the home inspected before making an offer.

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The transfer duty you can expect to pay in South Africa

Article summary:

  • A property transfer duty is a tax payable by buyers of all types ofproperties.
  • Transferduty is calculated over and above the selling price and is based on the value, not the price, of the property.
  • If someone who owns a property gets married in community of property, the spouse will automatically become the owner of a half-share of theproperty, without paying any transfer duty.

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What are the best banks for home loans in South Africa?

Article summary:

  • When it comes to finding the best banks for home loans in South Africa, a bond originator will tell you more than any customer satisfaction survey.
  • An independent bond originator will compare home loans for you, giving you access to far more products than if you went direct.
  • Because they are intimately acquainted with the industry, bond originators know which are the best banks for pre-approved home loans too.

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4 Ways to use credit to build wealth

The concept of taking out credit has gotten a bad rap in recent years, following the subprime mortgage crisis in the US and rising levels of indebtedness in South Africa.

However if credit is used in a constructive way, it can prove to be a vital tool in building wealth creation for the future.

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How to get a home loan if your bank declined your application

Article summary:

  • Bond applicants do not get preferential treatment by going direct, as banks are governed by the National Credit Act and lending is regulated.
  • Statistics show that you have a far better chance of obtaining the thumbs up on your home loan application if you go through a bond originator.
  • Home Loan Consultants are successful in securing home loan financing for one in every three applications that are initially turned down by a bank.

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7 Reasons why owning a property is better than renting

Key takeaways

  • There are distinct advantages to owning your own home as opposed to renting someone else’s
  • Owning is beneficial from both a financial and lifestyle point of view
  • Buying a home may seem daunting but there is expert help available every step of the way

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The true cost of buying a house

Wouldn’t it be lovely if the price tag on your new home was all you had to pay? In reality, there are several hidden and not-so-hidden costs associated with buying property. Here are some of the major expenses, to help you prepare.

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How to clear your credit record before applying for a bond

A credit report reflects your financial health: what you spend your income on, whether you can afford the debt you have, and whether any lender has taken legal action against you for non-payment.

In fact, according to experts, a good record of servicing debt is your most important asset when buying a house. This is because it’s the first thing banks look for when considering your bond application. Based on your creditworthiness, a lender can then decide whether to approve your application for a home loan.

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The Advantage of a Deposit

38% of bank approvals are currently subject to a lower offer - there is therefore an increasing need for homebuyers to have a deposit available for a successful application.

The approval and ultimate conversion rate on a 100% LTV bond application is significantly lower than a 90% or lower LTV bond.

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Gaining Access to your Bond

An access bond is a home loan that allows borrowers to pay additional funds into their home loan account, over-and-above the required monthly bond instalment, secure in the knowledge that if they require the funds, they can withdraw them again. It is a tax free savings mechanism and the additional funds can be withdrawn at any time.

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Getting it right, first time

An expert takes pride in his/her professionalism and would never prejudice service delivery to the homebuyer, lead provider or the banks by submitting an application to a bank/s without the required relevant bank’s minimum document requirements to support the application, which has been verified to the information captured...

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Building Loans

A shortfall occurs when a Building Bond is registered for a lesser amount than that of the builder’s contract / tender amount. In order to mitigate the risk the customer must have access to sufficient funds to cater for the difference. Often homebuyers are unable to meet this requirement post registration and transfer as they have not taken this into account, resulting in delays.

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Five Clever Tricks To Reduce Your Home Loan

Homeowners can reduce the term of their homeloan and the total that they pay in with careful budgeting and clever tricks. A house is usually the biggest asset that you will buy in your lifetime, but it's made affordable by the 20-year term of monthly repayments...

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Your bond has been approved. What happens now?

You’ve found your dream home, made an offer, it’s been accepted and your bond has been approved. It’s all extremely exciting, but there’s still a lot that has to happen before you can collect the keys and move in.

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Deposit or 100% bond?

There are many benefits to putting down a deposit for your first home, but in today’s tough economic climate, it may be more realistic to take out a 100% bond. How do you decide what’s best for you?

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House hunting? A prequalification certificate says you are serious about committing to your dream home

Prospective home buyers who obtain a prequalification certificate are doing so much more than just finding out how much they can afford to spend on a house. They are also acquiring a certificate that will build trust between all parties, including the agent and the seller.

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Clear Credit Record Necessary when Applying for a Bond

According to the Credit Bureau Monitor's 2010 4th quarter report only 53.3% (9.90 million) of the 18.51 million credit-active consumers in South Africa were classified as in good standing...

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