Tips For First Time Home Loans In South Africa

Those seeking first time home loans in South Africa need to exercise caution. The growth in house prices is currently expected to be around 12%, with growth next year projected at even less. The implication of this is that capital growth is unlikely to cover the interest costs of 108% bonds in South Africa for the first few years, potential placing those who have taken out first time home loans in South Africa in a tight spot. While not news that need intimidate first time home loans recipients, it means that they should make informed decisions.

The 108% bonds in South Africa assist first time buyers who cannot afford house deposits. They also cover transfer duties, making them an attractive option. Home Loan SA has provided a number of tips to help those who are taking out first time home loans in South Africa.

The first thing is to look at how much you can afford, and project a cash flow model that you are comfortable with. Once you have this you are in a position to look at home options. Gather all the information that you can on the costs involved, such as transfer fees and levies. Don't be shy to seek advice from reputable professionals - you won't have to pay for this. Then start to shop around for the best home loans you can find - remember that the market is competitive and you have many options. When you have decided on a first time home loans option, secure finance upfront, so that you can negotiate knowing that you have the money available.

Check title deeds for restrictions, which can lead to hidden costs, and have specialists check the structural elements of the house, including plumbing and electricity. When you have decided on a house, pay attention to the difference between possession and occupation. An occupant only takes possession on the day that the transfer is registered at the Deeds Office.

Manage your repayments intelligently. Maintain your monthly repayments even if interest rates fall, as this will start putting you ahead of your repayment schedule, and the extra you pay turns your bond into a high-interest tax-free savings account that you can access later.

3/7/2008 4:04:55 PM