Avoid the stress and mistakes most homeowners must endure when they buy a home by educating yourself about the options and fees associated with home loans.
First-time buyer home loans: A loan in which borrowers finance more than the full value of the property, the intention being that they cover part of the loan's cost with the loan itself. Along with a lack of deposit requirement, this eases the burden on new buyers and allows them to realistically enter the market.
The buyer picks the loan with a fixed rate and will pay for 1-2 years on interest, and it is slightly higher than the present leading rate so when rates decline, it will not be an adjusted rate.
Variable home loans are the best choice when prime interest rates are on the decline. Initially, you start off with one rate rate you and the lender set together. And when the prime rate goes up or down, the rate of your loan follows.
Capped home loans: Buyers will only be able to receive the benefits of both the variable and fixed home loans, who meet the required qualification. Use this option caps to negotiate rate for a fixed period of time. you can also take advantage of decreasing interest rates which also safeguards you against raising interest rates. confirm if you can avail this option from your bank.
You should also take into consideration the costs of getting a home loan when you enter the market. Most buyers are not familiar with these costs and are often surprised to see how much they add up.
A minimum deposit amount should be paid to the lender if you are not a first-time buyer to apply for a home loan. The deposit amount is generally 20%, but it can also vary depending on the value of the property for which you are applying a home loan.
Dictated by the Law Society, transfer and registration fees go to the attorneys registering property and the mortgage bond on that property. More expensive properties earn higher fees, also known as conveyancing fees.
Deeds office levies and fees:the registration of possessions and other civil rights regarding immovable property are accountability of The Deeds office.The department of Land affairs is the main jurisdiction held by the government office
Rates and taxes: Before property can be transferred to your name, the rates due on the property must be paid in full for the financial year. As a buyer you will be responsible for a pro rated amount for the part of the year you will occupy the property. You will also be charged for a rates clearance fee certificate.
Remember the price of life insurance and property that are added to the total cost of home ownership. Also, when making a budget for installments, add the costs of moving, water, electrical, and miscellaneous household expenses.
First-time buyer home loans: A loan in which borrowers finance more than the full value of the property, the intention being that they cover part of the loan's cost with the loan itself. Along with a lack of deposit requirement, this eases the burden on new buyers and allows them to realistically enter the market.
The buyer picks the loan with a fixed rate and will pay for 1-2 years on interest, and it is slightly higher than the present leading rate so when rates decline, it will not be an adjusted rate.
Variable home loans are the best choice when prime interest rates are on the decline. Initially, you start off with one rate rate you and the lender set together. And when the prime rate goes up or down, the rate of your loan follows.
Capped home loans: Buyers will only be able to receive the benefits of both the variable and fixed home loans, who meet the required qualification. Use this option caps to negotiate rate for a fixed period of time. you can also take advantage of decreasing interest rates which also safeguards you against raising interest rates. confirm if you can avail this option from your bank.
You should also take into consideration the costs of getting a home loan when you enter the market. Most buyers are not familiar with these costs and are often surprised to see how much they add up.
A minimum deposit amount should be paid to the lender if you are not a first-time buyer to apply for a home loan. The deposit amount is generally 20%, but it can also vary depending on the value of the property for which you are applying a home loan.
Dictated by the Law Society, transfer and registration fees go to the attorneys registering property and the mortgage bond on that property. More expensive properties earn higher fees, also known as conveyancing fees.
Deeds office levies and fees:the registration of possessions and other civil rights regarding immovable property are accountability of The Deeds office.The department of Land affairs is the main jurisdiction held by the government office
Rates and taxes: Before property can be transferred to your name, the rates due on the property must be paid in full for the financial year. As a buyer you will be responsible for a pro rated amount for the part of the year you will occupy the property. You will also be charged for a rates clearance fee certificate.
Remember the price of life insurance and property that are added to the total cost of home ownership. Also, when making a budget for installments, add the costs of moving, water, electrical, and miscellaneous household expenses.
About the Author:
Tom Martens is the marketing director for Homeloans-southafrica.co.za. South Arica's leading Home-loans portal
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