A construction loan, also known as a building loan, is a type of loan used to finance the cost of constructing a new home. In contrast to a home loan, which is used to purchase a pre-built home, a construction loan is paid out in stages as each stage of the construction process is completed. …
A deposit on a home loan is the amount of money available for the purchase of a home at the time of the loan application. A larger deposit may help you get a better rate on a home loan because it shows the lender that you have the financial means to contribute significantly to the …
Yes, it is possible to use the equity in your current home as collateral to take out a loan, which is more commonly known as a mortgage, so that you can buy another house. One of the names for this type of transaction is a “cash-out refinance,” and another is a “second mortgage.” You will …
Can I borrow against my house to buy an additional house? Read More »
Yes, as a South African citizen, you are allowed to purchase property in South Africa from overseas. There are no restrictions on South African citizens owning property in South Africa, regardless of where they are currently located. However, purchasing property from overseas can be more complex than buying property in person, as there are additional …
In South Africa, a levy is a charge that can be placed on the property owners as well as the tenants of a building or complex in order to pay for the upkeep and maintenance of the common areas. Facilities like swimming pools, fitness centres, gardens, and outdoor play areas are examples of what might …
Rent-to-own is a popular option in South Africa for people who want to buy a home but don’t have enough money for a traditional mortgage or don’t qualify for a traditional mortgage for other reasons. In a rent-to-own deal, the buyer agrees to rent the property for a certain amount of time. During that time, …
Rent to buy model for buying a house in South Africa Read More »
Because purchasing a home is such a significant investment, it is critical to make sure that the transaction is both protected and open to public scrutiny. When purchasing a home in South Africa, one method of accomplishing this goal is to make use of escrow services. A financial arrangement known as escrow is one in …
Using an escrow account to buy a house in South Africa Read More »
No, your levy pays for building insurance as well as security, cleaning, repairs, and maintenance of all common spaces. Levies are only intended to maintain the common areas of a sectional title development. What do Levies cover? Property owners in a sectional title institution, such as a townhouse complex or a cluster development, are responsible …
Yes, but there is a catch. There is the option aimed at first-time buyers of a 105% bond, in which the extra 5% covers additional costs, including the transfer and bond registration costs. This means that, although you won’t have to pay a deposit or transfer and bond registration costs upfront, these costs will be …
When it comes to buying a house in South Africa, the basic principle is to put away as much of a deposit as you possibly can. Your monthly loan payment will be lower if you make a larger initial deposit. The loan-to-value ratio of a home loan is used to classify different types of home …
Will a deposit get me a better rate on a home loan/bond? Read More »
