What documents are required for a bond?

Now, you want to get a home loan but you don’t know which documents to send to your lender or bond originator. This is also important as you want to get the process started as soon as possible and to do that, you will have to send the correct documents. Here is what your lender (bond originator) will need from you:

Time to switch to 30-year loans?

Cash-strapped homeowners should consider extending their mortgage repayment period from the conventional 20 to 30 years, a move that could translate into a R620/month saving on an R1m loan.

Banks and mortgage originators have in recent weeks started to encourage homeowners to take this route before they start falling into arrears and potentially lose their homes.

Interest rates rise to 15%

Tito Mboweni announced an interest rate hike of 0.5%. With the previous interest rate already on 14,5% we are now standing at 15%.

This increase will certainly place a lot of pressure under most of the South African, middle class home owners. A lot of the South African home owners are already struggling to make their bond repayments. Now, with the interest rates this high one can only wonder if some of them are still going to be able to keep their home.

Black residential buying power up

The growing buying power of South Africa’s black middle class is having a dramatic effect on the shaping of South Africa’s economy and society.

This effect is not just being felt in the retail sector, vehicle sales and financial services, but especially in the property sector, where statistics from the FNB Property Barometer show that in some markets 49% of buyers of residential property are non-white. [read the whole story]

SA to get first ‘land bank’

A local bank have backed a property dealmaker by taking a stake in what is likely to become South Africa’s first “land bank”.

Its aim is to maintain a reliable supply pipeline of land for around R10bn in property developments.

Land Equity Investments Ltd will probably list once its land assets reach R1bn. This implies an initial development pipeline of about R8bn. The company will also do an empowerment deal at that stage with a strategic partner. Read the full story at Property24

MortgageSA changes to “ooba”

The very well known bond originators, MortgageSA has changed its name to ooba. That is ooba spelled with a lower case letter and not capital.

The shocking part of the whole insident is: The fact that they are paying R32 million to advertise the new corporate identity that is already being used by another company overseas. The name ooba is not a unique name and is actually the corporate identity of an overseas baby furniture making company. The colour scheme differs a little bit but the font is very much alike. Apparently, they are allowed to do this. According to the law, you may use another company’s logo if the company’s name isn’t well known.

One can only wonder why a big, well established company like MortgageSA would go and spend R32 million on marketing a new name that isn’t even unique.

MortgageSA’s explenation of the new name is that “ooba” is derived from universally used word uber, meaning “super”, “the ultimate”, “the best”.

ABSA and Barclays launches a new mortgage product

Barclays and ABSA has launched a new mortgage product that will allow UK citizens to buy property overseas and non-UK citizens to buy property in the United Kingdom.ABSA is the largest mortgage provider is South Africa. Together with Barclays the make the perfect team in providing expert mortgage advice and offer the best mortgage products for Barclays and ABSA costumers.

There are some aspects that affects the mortgage applicants like the foreign exchange control rate when they decide to purchase a property in a foreign country. For example, if a UK resident wants to purchase a property in a foreign country, they can only do so if Barclays or ABSA is present in that specific country. They will also need to comply with the exchange control rulings which states how much money you are allowed to take abroad. UK residents or any other resident, where Barclays is present can qualify for loans up to 50% of the total loan value in South Africa. Barclays international mortgages will introduce you to experts who will give you the necessary advice on tax implications, exchange control regulation, legal contracting across borders, credit lending policies and economic outlook on interest rates and exchange rates.

For international investors, whether they decide to buy a home in South Africa, a holiday home or just invest, will be given the necessary expert advice and guidance from ABSA international mortgage. They will also be given tools, designed and developed to best meet their needs.

South African residents who wish to purchase a home in the UK or any other territory where Barclays is present will be assured to be assisted by a reputable financial institute that has an established pedigree in financing international purchases.

Barclays and ABSA joined together are now your perfect solution for to international mortgages.

As displayed on ezinearticles.com

2008 Budget speech - more money for land reforming

Yesterday 20 February, Finance minister, Trevor Manual, gave his budget speech on South Africa. In the review, it stated that human and financial resources are now being shifted to speed up the pace of land distribution.

The review states that R2,6 billion over and above last year’s Medium Term Expenditure framework, is to be spending on reform and agriculture support programs. Outstanding land restitution claims will get an additional R1bn over the three-year medium term expenditure period. Agriculture extension services receive an additional R500 million over the medium term, through the provinces, and 5 000 new extension officers are to be recruited to provide agriculture advice and production assistance. [Read full story...]

What does a Bond Originator do?

By now everyone has come across the term Bond Originator, but there is still some uncertainty to what a bond originator actually does. To put in a nutshell; they do all the legwork for home loan applicants in seek of a home loan.

Bond Originators has become very popular in South African over the past few years. The reason for this is very simple. When you are seeking for a mortgage, you would normally go to the bank, stand in a queue and fill out a bunch of paperwork. Now, when using a bond originator, you don’t have to do all that any more.

The originator will go to the bank for you, make sure all the right documents are send and they will seek the lowest interest rate at all the major banks in South Africa. They also pressurize the banks to speed up the process in getting you a mortgage as soon as possible.

Because they get paid a fee by the banks, their service is absolutely free of charge and they will provide you with professional service. You can benefit a lot when using a Bond Originator, like saving lots of money, not standing in queues anymore, saving frustration and getting a home loan approved much sooner.

It simply makes sense these days, especially with the implementation of the NCA to use a bond originator to handle your home loan.

How will the public invest when property prices keep rising?

Over the last 10 years South Africa has certainly achieved a lot like democracy and political freedom but it seems like we are facing big problems at the same time.

Things like load shedding and the interest rates that rises to astronomical heights are one of them at it looks like things are only getting worse. Now, the senior officer at ABSA has announced that house prices will rise to 60% in the next five years and the time for investing is now. Read the whole story here

Now, thinking in terms of investing in property and the problem surrounding it. In the last two years we have had the National Credit Act (NCA), and the ABSA basis points that have risen with 5 whole points. This almost makes it impossible to get a home loan not even to mention the new comers and the younger generation.

The government should step up and come up with a solution to our ever growing real estate prices.