The first few years of paying off your home loan can be a very disheartening experience. Despite paying in large amounts, the outstanding balance hardly seems to budge.
Tag - home loan
A 23-year-old wants to do the right thing with her money and not end up a casualty of ‘bad debt’.
Even a 0.25% reduction in your mortgage rate could save you tens of thousands of rands, but how open is your bank to the discussion?
Although the process of securing building finance differs slightly from a traditional home loan, it is still governed by the National Credit Act and the same banking policies and lending criteria still apply.
Make sure you understand how your access bond works.
If you have a R1m home loan, payable over 20 years at the current prime interest rate of 10%, you are set to pay more than R1,3m in interest by the time you’ve paid off that bond and the home is finally yours.
Many consumers who are eager to finalise the house-buying process often rush into taking out and ceding life insurance without first doing their homework.
If your household income is between R3,501 and R15,000 per month, you could benefit from a government programme that could help you put a foot on the property ladder.
When you apply for a home loan, lenders will look at many factors before deciding whether to approve your application or not – and if you don’t “pass the test” for any one of these, they are quite likely to turn you down.
If you want to draw down on the equity built up in your property, you may be in for a nasty surprise.