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.
You should also take into consideration the costs of getting a home loan when you enter the market. Most buyers are not familiar with these costs and are often surprised to see how much they add up.
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 property can be transferred to your name, the rates due on the property must be paid in full for the financial year. As a buyer you will be responsible for a pro rated amount for the part of the year you will occupy the property. You will also be charged for a rates clearance fee certificate.
Be sure to calculate your moving costs, water, electrical and other household costs as you budget for your installments. And don't forget the costs of property and life insurance that also add to the overall costs of owning a home.
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.
You should also take into consideration the costs of getting a home loan when you enter the market. Most buyers are not familiar with these costs and are often surprised to see how much they add up.
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 property can be transferred to your name, the rates due on the property must be paid in full for the financial year. As a buyer you will be responsible for a pro rated amount for the part of the year you will occupy the property. You will also be charged for a rates clearance fee certificate.
Be sure to calculate your moving costs, water, electrical and other household costs as you budget for your installments. And don't forget the costs of property and life insurance that also add to the overall costs of owning a home.
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
3:09 PM
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