Consumers who fail to correctly declare expenses when completing a bond application may limit their chances of getting the best home loan deal possible. Mpho Ramatong, FNB Home Finance Division Channel Head: Housing Schemes, says when lenders assess an application, affordability, which considers your total income relative to living expenses, is an important measure used to determine whether you would be able to keep up with monthly home loan instalments or not. This can further influence … [Read more...] about Correctly declare your expenses in a home loan application
Home Loan
How to get a good home loan interest rate
First-time home buyers often get consumed by positive emotions after qualifying for a home loan, while overlooking how interest rates may impact their monthly home loan repayments. Stanley Mabulu, Channel Management Head in the Home Loans division at FNB, says the interest rate that financial institutions charge on a home loan has long-term ramifications on consumers’ ability to service debt. This is partially due to the nature of interest rates that fluctuate as economic conditions … [Read more...] about How to get a good home loan interest rate
Use your home loan account to save money
There are different ways to save money, but the most unconventional or perhaps least considered is saving through your home loan account. Kathu Ramoliko, Head of the Gold Sub-Segment at FNB, says “A home loan is a long-term financial commitment which takes years to repay, however, it can also be used as a savings tool over the life of the loan. In other words, as a homebuyer, the loan provider can structure your home loan in way that allows you to pay extra towards the loan. The benefit is … [Read more...] about Use your home loan account to save money
Disadvantages of paying off your home loan early
With Statistics South Africa (StatsSA) having revealed that a majority of consumers have settled their bonds, many home owners will be anticipating the prospects and viability of paying off their home loans early? Calvin Ndlovu, Head of Operations at FNB Home Loans, says there is no correct or incorrect answer to the question on whether you should pay off your home loan early or not. “It all depends on your individual circumstances, long-term objectives as well as how you plan to structure … [Read more...] about Disadvantages of paying off your home loan early
Should you fix your home loan interest rate?
Following the South African Reserve Bank’s move to keep interest rates at the same level, coupled with the notion that the bank may have reached the peak of its hiking cycle; home owners will probably be reluctant to fix their home loan interest rates. “Although there’s a good chance that interest rates may have peaked; consumers still need to tread with caution due to possible risks of further downgrades to our sovereign credit ratings. Therefore, home owners may find current fixed interest … [Read more...] about Should you fix your home loan interest rate?
Three Tips to Maximise the Return on your Home Loan
A home loan is more than just a simple facility to keep up with until your property is paid off. It can be a sophisticated money management tool, if managed correctly. "A pre-paid home loan facility allows consumers to transfer excess funds into their Home Loan, effectively saving on interest while being able to use the funds at no additional cost," says Tommy Nel, head of credit at FNB Home Loans. Let's look at different ways this can benefit you assuming you have a bond of R1 million … [Read more...] about Three Tips to Maximise the Return on your Home Loan
When a 30 year home loan is to your benefit
Taking out a 30 year home loan needs to be thought through very carefully. However, there are some instances where it can work for a property owner. "There are a few instances when having a 30 year bond will benefit property owners. However, while a 30 year bond period may seem attractive it is rarely in the financial interest of a consumer, unless the appropriate level of financial discipline is exercised. One of the times a 30 year bond would be financially beneficial is if the person is … [Read more...] about When a 30 year home loan is to your benefit
Taking on more debt after home loan approval may trigger a reassessment
8 August 2016 - Home loan customers are often not aware that some banks may continue to monitor their credit profiles and perform updated affordability checks up until bond registration. This means consumers taking on further debt after they have received a home loan approval may find that the approved home loan amount is reduced, repriced or declined all together. "We have found that consumers are often unaware that taking out further debt after their home loan is approved will trigger a … [Read more...] about Taking on more debt after home loan approval may trigger a reassessment
The ins and outs of home loan affordability assessments
Purchasing your first house is a big step and most people will have to apply for a substantial loan from a financial institution. In order to give yourself the best shot at being granted a loan for your dream home, it is important to understand what the bank uses to assess your affordability. "One of the major reasons that a home loan application is declined is because the potential home owner unable to afford the monthly repayments," says Albertus van Staden, Head of Credit at FNB Housing … [Read more...] about The ins and outs of home loan affordability assessments
Should you fix your home loan rate now?
With interest rates seemingly on an upward cycle, the issue of fixing home loans in the market becomes a hot topic. However, fixing interest rates on your home loan requires a carefully laid out strategy and not a knee-jerk reaction to interest rate increases. Banks do not fix home loan interest rates based on the current repo rate, but on the market interest rate curves which are constantly changing. "The market interest rates are as dynamic as the share market, meaning that market … [Read more...] about Should you fix your home loan rate now?
Tips on saving for a home loan
Saving towards a deposit on a new home is not only a good way to prove that you are ready to take on the additional costs of being a home owner, but also has concrete benefits in potential lower interest rates and a higher chance of having the loan amount granted. "Saving is always a good idea, irrespective of the purpose, and the best time to start savings is always right now," says Tommy Nel, Head of Credit at FNB Home Loans. "Having the discipline of savings is especially important when it … [Read more...] about Tips on saving for a home loan
