How To Get Home Loans In South Africa
Move away form all stressfulness and mishaps that most homeowners go through when buying a home by learning options and fees for home loans.
First-time buyer home loans: Designed for people who have never financed the purchase of property before, this option allows qualified borrowers to finance more than 100% of the property value. The goal is to make it easier for new buyers to enter the market by wrapping some of the costs of a loan into the loan amount. In addition, there is no deposit requirement for first-time buyer home loans.
Fixed home loans have their own advantages and disadvantages. They have a fixed interest rate, generally for a period of one to two years. Though the fixed loan's interest rate is marginally higher than the current prime lending rate, it proves to be beneficial by protecting the home owners from the rising interest rates. On the other side, if the interest rates decline, the rate and payment will not be adjusted.
Variable home loans: This type of loan begins with one interest rate, agreed upon between you and your lender. Then, if the prime interest rate increases or decreases, the interest rate on your loan will adjust accordingly. Obviously, this option is best in a declining interest rate environment.
Capped home loans: Buyers will only be able to receive the benefits of both the variable and fixed home loans, who meet the required qualification. Use this option caps to negotiate rate for a fixed period of time. you can also take advantage of decreasing interest rates which also safeguards you against raising interest rates. confirm if you can avail this option from your bank.
The cost that a person needs to pay for getting a home loan is as important as the home loan and it should be considered when one enter the market. But for most buyers who are not familiar about this, will ended up in a surprise.
A minimum deposit amount should be paid to the lender if you are not a first-time buyer to apply for a home loan. The deposit amount is generally 20%, but it can also vary depending on the value of the property for which you are applying a home loan.
Dictated by the Law Society, transfer and registration fees go to the attorneys registering property and the mortgage bond on that property. More expensive properties earn higher fees, also known as conveyancing fees.
Deeds Office levies and fees: It is the responsibility of the deeds office to register ownership and other rights associated with immovable property. The Department of Land Affairs oversees the responsibilities of this government office.
Rates and taxes: Before any property can be transferred into your name, all money owed on the property has to be paid for the full year. If you are the buyer, you will be charged a pro-rated amount for the time that you are there. There will also be a charge for a rates clearance fee certificate.
Some of the most important that has to be considered while owning a home are the cost of the property and the life insurance which adds up to the overall costs. Also the moving costs, water, electrical and the household costs should be calculated for budgeting.
First-time buyer home loans: Designed for people who have never financed the purchase of property before, this option allows qualified borrowers to finance more than 100% of the property value. The goal is to make it easier for new buyers to enter the market by wrapping some of the costs of a loan into the loan amount. In addition, there is no deposit requirement for first-time buyer home loans.
Fixed home loans have their own advantages and disadvantages. They have a fixed interest rate, generally for a period of one to two years. Though the fixed loan's interest rate is marginally higher than the current prime lending rate, it proves to be beneficial by protecting the home owners from the rising interest rates. On the other side, if the interest rates decline, the rate and payment will not be adjusted.
Variable home loans: This type of loan begins with one interest rate, agreed upon between you and your lender. Then, if the prime interest rate increases or decreases, the interest rate on your loan will adjust accordingly. Obviously, this option is best in a declining interest rate environment.
Capped home loans: Buyers will only be able to receive the benefits of both the variable and fixed home loans, who meet the required qualification. Use this option caps to negotiate rate for a fixed period of time. you can also take advantage of decreasing interest rates which also safeguards you against raising interest rates. confirm if you can avail this option from your bank.
The cost that a person needs to pay for getting a home loan is as important as the home loan and it should be considered when one enter the market. But for most buyers who are not familiar about this, will ended up in a surprise.
A minimum deposit amount should be paid to the lender if you are not a first-time buyer to apply for a home loan. The deposit amount is generally 20%, but it can also vary depending on the value of the property for which you are applying a home loan.
Dictated by the Law Society, transfer and registration fees go to the attorneys registering property and the mortgage bond on that property. More expensive properties earn higher fees, also known as conveyancing fees.
Deeds Office levies and fees: It is the responsibility of the deeds office to register ownership and other rights associated with immovable property. The Department of Land Affairs oversees the responsibilities of this government office.
Rates and taxes: Before any property can be transferred into your name, all money owed on the property has to be paid for the full year. If you are the buyer, you will be charged a pro-rated amount for the time that you are there. There will also be a charge for a rates clearance fee certificate.
Some of the most important that has to be considered while owning a home are the cost of the property and the life insurance which adds up to the overall costs. Also the moving costs, water, electrical and the household costs should be calculated for budgeting.
About the Author:
Tom Martens is the marketing director for Homeloans-southafrica.co.za. South Arica's leading Home-loans portal
posted by Debt Consolidation Loan at
1:31 PM
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