Choose the right bond for you
There are so many homeloan choices available; it may be hard to identify the bond that is right for you. All banks provide a homeloan for anywhere from 10 to 30 years, repayable monthly at an interest rate margin lower than prime rate. All of them look so attractive – how do you make a choice?
Everyone has different needs and circumstances and everyone requires unique solutions. You need to choose a bond that best suits your needs and situation and that best meets your requirements.
Each application will be looked at on merit. Your credit history and banking record plays a big role when applying for a homeloan. Debit orders are the preferred way of repayment, but you can negotiate with your bank if this is not the most convenient way for you to pay.
Life insurance is compulsory on the smaller bonds under R200 000 and you do not need to purchase life insurance from the bank, you simply have to prove that you are covered.
As a first time homebuyer, you will qualify for a 108 percent bond to cover all bond costs. You can adjust your repayment per month at any bank to pay off your homeloan faster.
Different banks – different options
ABSA offers Multiplan, which allows the freedom to structure your homeloan account into separate accounts with their own terms and conditions. All accounts will be managed through a single account.
First National Bank rewards their clients with eBucks on all homeloan products. This is an attractive option for homebuyers, as they will receive some return on their investment – sooner than usual.
Standard Bank offers Business Mortgage for financing residential properties, which have been converted for business use.
Nedbank offers an investment product called Buy to Let. This product adds rent to your income so you can borrow more and invest in more property.
There are so many banks and each bank has its own set of products for homebuyers. It is important to know the different products (and hidden small print!) so it is best to go to a bond originator who is familiar with different banks and their products. The originator can guide you and help you make the choice that is best for you and your circumstances.
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