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Julie Költzow from Multinet Home Loans can apply to one or more of the major banks* on our client's behalf in an attempt to secure a bond. The process takes approximately 15 days from start to finish.
Generally, banks will propose a traditional home loan. Yet, the bank will first do an evaluation of the property to determine its real value before the loan gets secured.
A traditional home loan features competitive mortgage rates, but the interest rates may fluctuate. This means that when the interest rate goes up, your home loan rate will also go up and vice versa.
There is also no mortgage insurance built in. Therefore you will need to take out homeowners insurance.
Normally, the bank will allow 30 % of a person's or couple's joint gross income to be allocated towards housing, but a client's credit score and payment history will also have an influence.
"We encourage our clients to use a Bond Originator," says Zani van Wyk, Principal of Property to Link. "Our clients are guaranteed a better interest rate and only have to send their personal information once, i.e. to our Bond Originator, thus saving our client's time, money and hassle."
Another benefit is that our Bond Originator can issue a client with an Affordability Certificate, this way a client will know what they can afford beforehand.
"You as client will not be responsible for the Bond Originator's fee. On successful bond registration, the bank will pay the Bond Originator, just like they would pay their consultants," explains Zani.
* The four major banks are Nedbank, Standard Bank, Absa Bank and First National Bank.
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