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

Advertisements

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


Home Loans For People With Bad Credit

August 1, 2011

Home loans for people with bad credit is very difficult to get when a poor credit history exists.

A lot of South Africans end up with bad debt due to circumstances out of their control. There is very little you can do if you lose your job and cannot afford to pay off your debt.

However, most people take out too many loans and credit card debt and when interest rates go up they struggle to keep up with debt payments which ultimately results in a bad credit rating.

Bad credit home loans are designed for people with a bad credit record. Bad credit home loans can be used to refinance your current home loan or to consolidate debt.

Click Here – Home Loans For People With Bad Credit History

People apply for bad credit home loans everyday throughout South Africa. An increasing number of lenders are prepared to adjust their risk portfolios in order to try and help individuals who does not have a great credit record.

 

Read the rest of this article here

* information correct as per time of posting


Home Loans Alternative

December 8, 2010

SA Homeloans:  Ever wondered why some banks approve applications while other banks decline them?  Why some banks give 100% bonds while others only give 85 – 90%?

The answer is quite involved, but I’ll try to explain. Regarding some approving and some not all depends on your personal credit profile as well as your internal bank rating and their internal rating system called the bank scorecard.

Your credit profile needs to be clear for a bank to approve your loan, and in addition to that you need to have a high enough credit score for them to approve.  Most banks require a credit score of 600+, so if you fail that first hurdle you might be declined.

Your internal record at the bank involves accounts you may have with that bank and how you have conducted those accounts.

The bank scorecard is an algorithm used by the bank combining all of the above factors and includes other “secret” criteria that the bank requires.

The banks scorecard is secret because thats what gives one bank an edge over another so they never disclose what the elements of the scorecard are – so next time you get a blank answer stating that you don’ t meet the bank’s minimum criteria, you know why.

Second point is that some banks give 100% loans and others not.

It really does depend where you bank.  Your own bank will always consider 100% but may give a lower offer, but here’s a quick snapshot of how it’s worked out – remember, the % is always a percentage of  the purchase price and not the value, except when it comes to a further bond or 2nd bond then it’s worked out on the value

These figures are based on a purchase price/further bond of under R1.5mil:

So I hope that clears up some confusing points regarding home loans in general, if you have anything further you are welcome to email us or call us any time.

* information correct as per time of posting


Home Loan approved….What’s Next?

December 7, 2010

Home Loans:  Okay, so the hardest part is over, the home loan is now approved, so what’s next.

Don’t get left in the dark, we’ll help you along the way in the home loans process.  For more information about the steps involved watch our latest video:  http://www.youtube.com/watch?v=R0R3SG_Sx40

* information correct as per time of posting


How Much Does It Cost To Get A Home Loan?

November 29, 2010

If you’re interested in applying for SA homeloans but your not sure if it costs money to get someone to do the application for you, watch our latest video: 

 

http://www.youtube.com/watch?v=c8iUUFif87M

* information correct as per time of posting


What Criteria is Needed To Be Approved for a Home Loan

November 25, 2010

If you’re looking for a home loan and are not sure if you meet the criteria needed to be approved, speak to a GPF Mortgage consultant.

With almost 10 years experience in getting SA Home Loans approvals for clients you can’t go wrong.

Also, watch our latest video post on criteria needed:

http://www.youtube.com/watch?v=bnZUbfKfv2M

* information correct as per time of posting