Though concerns about financing the purchase of a home unavoidable for most protective property buyers, a few people are either lucky enough to be able to dip into their savings or able to borrow the full value of the home from the bank.
When applying for a bond, close to 80% of applicants are normally successful, with three out of four awarded a 100% bond. The rest are required to finance a portion of their purchase themselves, which is between five and 10 percent of the bond. But, even if you you’re financially incapable of coming up with a deposit, though, there are several things you can do to maximize your home loan application.
Having a stellar credit history and credit score is the number one tip to getting the best possible mortgage deal. The ability to comfortably afford the monthly payments will also put you in the running for full financing. Although the amount differs among banks, there is a limit on how much banks will lend before requiring a deposit. Therefore, it’s advisable to apply for a loan for a property that sells for R2 million or less. It’s also important to note that the purchase will incur additional once-off costs, such as attorney fees, which are not be covered by the 100% bond.
While offering a deposit will prove that you are financially ready and responsible enough to buy a home, taking out a 100% bond may be the better option if you’re a first-time buyer looking to enter the property market sooner than wait for save for a deposit.
