Shaking off debt review shackles

February 1, 2013

An article published on fin24.com about how and when you can get out of debt review

Read it here

* information correct as per time of posting


Debt review divorce threat

January 31, 2013

Here’s a great article posted on fin24.com about debt consolidation, debt review and divorce:

http://www.fin24.com/Money/Money-Clinic/Debt/Debt-review-divorce-threat-20130130

* information correct as per time of posting


Are your debts keeping you up at night?

August 15, 2012
Are your debts keeping you up at night from globalpropertysa

* information correct as per time of posting


Home Loans Process Infographic

August 1, 2012


The Home Loans Approval Process – An infographic by the team at Home loans approval process

Embed The Home Loans Approval Process on Your Site: Copy and Paste the Code Below

The Home Loans Approval Process – An infographic by the team at Home loans approval process

 
* information correct as per time of posting


Reserve Bank Cuts Interest Rates

July 20, 2012

I’m very pleased to share with you that yesterday the South African Reserve bank but it’s REPO rate by 0.5% or 5 basis points.

 

This means that banks and financial institutions should now all be on par with a prime lending rate at 8.5% – this is the lowest rate in over 30 years and is welcomed by all.

Read the rest of the story here:  http://www.property24.com/articles/prime-interest-rate-cut-to-85-percent/15881?SourceFeed=News24

* information correct as per time of posting


The functions and benefits of a mortgage calculator

July 9, 2012

Buying a house requires a lot of money. Due to this, it is necessary for most people to take out a mortgage for purchasing a house. If you want to purchase a house in the near future, then you should possess a clear understanding of your financial affordability, before you take out a mortgage.

This is because mortgages are big liabilities, for which proper payments have to be made. If you fail to make payments for your mortgage, you can lose your house in a foreclosure. Thus, to make regular payments for your mortgage and to obtain complete control over your house, it is very crucial to understand how much house you can afford, before you take out a mortgage.

In this regard, a mortgage calculator can prove to be useful. This article highlights the benefits that you obtain by using a mortgage calculator.

Mortgage calculators: Functional and beneficial

Go through the points below for understanding the functions and benefits of a mortgage calculator:

  1. Understanding how much mortgage you can borrow – The most discernible function of a mortgage calculator is to help a borrower understand how much house he can afford. With the help you a mortgage calculator, you can determine how much interest you’d be required to pay for your mortgage, each month.

    Moreover, you can include important details regarding term of the loan, deposit amount and rate of interest for getting a better understanding of your affordability.

  2. Getting a better idea about the interest rates for adjustable-rate mortgage – Mortgages can be fixed-rate or adjustable-rate mortgage. In case of an adjustable-rate mortgage, the interest rates can fluctuate from time to time. It usually remains stable in the initial period, after which it keeps on fluctuating.

    Many home owners prefer adjustable-rate mortgage because the interest rate can be quite low in the initial period. However, the interest rate can become very high once it starts to fluctuate. A mortgage calculator can help you to understand how much the interest rates for an adjustable-rate loan can go up.

  3. Understanding when can you get rid of private mortgage insurance- In most cases, if a borrower provides a down payment of less than 20 % of the house’s purchase price, he’ll be required to purchase private mortgage insurance. If you do the same, you can take help of a mortgage calculator to find out when you can eliminate private mortgage insurance.

    A mortgage calculator will help you to comprehend when your house’s equity will reach 20%. In such a situation, you can ask your lender to wave off private mortgage insurance.

  4. Figuring out if refinancing a mortgage can be helpful – Refinancing a mortgage can be helpful for home owners who have already taken out a mortgage and are facing difficulties in making payments for it. By refinancing, they can substitute their existing loan with a new one, which contains more favorable terms and conditions.

    In case you face any crisis in making payments for your mortgage, you can take help of a mortgage calculator to figure out whether mortgage refinance will actually be helpful for you or not.

Thus, there are a number of important functions of a mortgage calculator. You’ll find a huge number of mortgage calculators on the Internet.

* information correct as per time of posting


Will My Interest Rate Change When I Apply For a 2nd Bond/Further Loan?

April 24, 2012

I get asked this question many times a day.  But can one really provide the answer in one sentence?

I can provide it in a word, and that is YES.

Your interest rate can most certainly change if you apply for an additional amount on your home loan.

Many simply don’t understand how it works because they reason they earn substantially more than they did when they initially applied for the bond, or that the value of the property has increased greatly due to the increasing value of the area or improvements that have been made to the property.

Unfortunately it’s not that simple, and I’ll try my best to explain to you what the guys in the know at Standard bank home loans have explained to us.

If you look at the market 4-5 years ago, just about everybody was getting interest rate reductions of 1.5 – 2.0% below prime, and the banks have had to honor their agreements with these clients, however, the rule is that when a new or another application is made, that the entire home loan account is re-calculated to the prevailing risk appetite of the bank.

This means, if the bank’s risk appetite is very low at this point in time or if they are borrowing money elsewhere at higher rates, they are unable to give large (or any) reductions on the prime interest rate.

This is especially true if they are borrowing money from international lenders because they are very risk averse when it comes to banks wanting loans to provide home loans to clients after the huge sub prime scandal in the US.

So, although this doesn’t provide a solution to the interest rate you might get, I’m hoping that this would give you more insight into WHY they can’t price what they used to.

If you are interested in applying for Standard Bank Home Loans, please don’t hesitate to contact us, the rate we’ll negotiate for you will the be THE lowest you’re able to get.

* information correct as per time of posting