Home Loans Process Infographic

August 1, 2012

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

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

* 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

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

Standard Bank = 100% Home Loans Again!

July 26, 2010

For more information on Standard Bank’s 100% Home Loan Policy, visit:


Calling all ABSA account holders

March 19, 2010

Courtesy of:  http://homepurchaseloans.blogspot.com/2010/03/calling-all-absa-account-holders.html

Are you an ABSA banking client looking for a home loan?

Until 30 April 2010 they’ll be offering special deals for individuals looking for home loans of R500 000 – R1 500 000 (excluding building loans, investment property, vacant lant, and fixed rates)

Although they haven’t disclosed what’s going to be making these deals so special, I’m guessing better interest rates.

If you’re one of those, don’t hesitate to contact us or click here for more information on ABSA home loans

The Home Loan Pre-approval Process

January 8, 2010

 To make sure of how much you can qualify for when applying for a home loan is to go through the home loan prequalification process. This is the first in formally applying for a home loan.

A prequalification is not a binding document and in many cases it is just a verbal estimate. It is an estimate of how much you can borrow based on your income.

A prequalification is not a loan guarantee and it is only as accurate as the information you have provided. Don’t try to overstate your income in the hope of qualifying for a bigger loan.

The lender won’t pull you credit record or commit themselves to what you can basically call a home loan quote. This is just a ball park figure to give you an idea of how much you can borrow.

If you’re serious on making an offer on a home you must complete a full application and the bank or your mortgage broker will need documents like payslips and bank statements during which time they will also confirm your employment and pull your credit record.

If everything is in order the bank will issue and AIP (approval in principle) which means that they are committed to give you a home loan as long as your credit or employment do not change for the worse.

Next, the lender will do a valuation on the home you would like to purchase and if they can find sufficient value in the property they will issue a final grant which means that your home loan is approved. The lender will instruct the attorneys to start with transferring and registering the property in your name.

 This process will take about two weeks and once you and the seller have signed the transfer papers it will take about another two weeks before the property is registered in your name.

For more information about home loans, visit:  http://www.gpfmortgage.co.za/contactus.html