With the repo rate that was cut by 25 basis points from 6.75% to 6.5% as announced by The South African Reserve Bank’s Monetary Policy Committee yesterday, now might be a good time to consider buying a property. With the repo rate down, the prime lending rate will decline to 10% from 10.25%. Here are a few important things to consider before you start to look for a property:
Know what you are in for: Make sure that you include all the costs, from the monthly repayment to the home contents and buildings insurance. Start by using the Mortgage Max home loan calculator to give you an idea of how much the bank will most likely lend to you. However, there are additional costs that you would have to take into consideration.
Do not let the once-off fees take you by surprise: Once you know how much you will be able to borrow, then you have to find out what the transfer fees are on the property that you want to buy. Remember to also include the attorney’s fees in your budget, and admin fee charged by the bank that will grant you a home loan.
Make your life easier by paying a deposit and adjusting your budget: Even if you qualify for a 100% home loan, it is still a good idea to pay a deposit, as it will lower your monthly repayment. You also have to adjust your budget to include additional monthly costs such as the rates and taxes, levies, security system fees, garden service, domestic helper, water, electricity and gas.
Iemas Financial Services partnered with MortgageMax, an industry-leading bond originator service provider, to do all the home loan application paperwork for you. We negotiate the best interest rates on your behalf until the keys to your new home are in your hands. For more information about our bond origination service visit: https://bit.ly/2HwlMZI or call us on 0861 043 627.
Do not forget to secure the structure of your home as well as to insure your home contents and appliances through Iemas Insurance Brokers, an authorised financial service provider (FSP 47563) and a wholly-owned subsidiary of Iemas Financial Services. Get comprehensive insurance solutions that secure your future, family, belongings and business by contacting us on 0860 102 383.
More blog articles on home loan:
- The pros and cons of buying and renting
- What do the current economic changes mean for South Africans?
- Flip your house to find out if you are underinsured
- Iemas celebrates International Day of Co-operatives
- How to maintain a good credit score>
Source: https://www.cover.co.za/budgeting-for-your-first-home/ and https://www.fin24.com/Economy/heres-what-the-rate-cut-could-mean-for-the-property-market-20190718