Let us assist you in answering all of the questions you might have when considering hunting
for that dream home as well as offer you any related advice.
Affordability – Maximum Home Loan Qualification
As a general rule, home loan repayments may not exceed 30 % of (joint) gross monthly income.
Your interest rate the bank will award depends on your repayment term, size of bond, joint income and general profile of client.
Before you start house – hunting, contact us to “pre-qualify” you. for a homeloan. You will then know what size bond you qualify for.
Once you have identified your ideal home and signed an “Offer to Purchase” or “Deed of Sale” you need to advise us accordingly.
Our Consultant will conduct an interview with you to obtain required information both in terms of the bank-and national Credit Act criteria (latter enforced in 2007).
Apart from the offer to purchase we will need a copy of your ID document (and spouse if married) , and proof of income. These documents will accompany your application to the bank .and within 2 working days of submission, providing we have all of the required documents from you, the bank will issue an AIP , i.e. Approval in Principle. We will always apply for a 100% bond on your behalf.
Legal-and other costs: There are two types of legal costs involved , i.e. bond Costs and Transfer Fees
Bond Costs are based on the size of the bond and comprise of Conveyance fees, FICA fees, Post & Petties and VAT
Example: On a R600 000 bond, Bond Costs will be R10190.
Transfer Fees are based on the selling price of the property and comprise of Transfer Duty , Conveyance fees, Deeds Office Fees , FICA fees , Post & Petties and Vat. Example: On a R600 000 bond, transfer fees will be R5000. Total Cost: R15 190
When buying property in a new development or a brand new single residential unit, transfer fees are normally included in the purchase price.
Rates and Taxes are due in advance, calculated till financial year-end of that specific local authority, when moving into a new property. In the following year home owners make arrangements to have each year’s rates and taxes paid over 12 monthly instalments.
Valuation fees need to be paid to the bank or appointed evaluator in cases where property, both building and vacant land, needs to valued before final loan approval is granted. Not applicable when buying in a new sectional title development.
Rates, Taxes, Water & Electricity, Sewerage and Refuse fees are only payable by residents from the date of occupation and not from the date of registration.
Types of Residential property
A Bond Originator acts on behalf of the potential home owner by going to the various banks and negotiating the best possible home loan package. This is supposed to be a free service to the client as the banks pay a commission to the broker for business placed with them.
At MortgageMax Nationwide Home Loans we pride ourselves on the ability to deliver client service excellence. This is the very cornerstone of our business and our approach is and has always been to chase a relationship with our clients rather than just a deal. We believe that by first winning the hearts and minds of our clients, the business will naturally follow. During the past six years this philosophy has paid huge dividends to our business.
Some valuable advice:
Tip 1: Pay any available cash into your home loan to reduce both interest repayments and the repayment term of the bond
Tip 2: Register your bond after the 20th of the month and your first bond repayments only goes off two months later, e.g. register 22 October, first installment 1 Dec. this provides some much needed cash flow when moving into a new property.