Tuesday, 29 March 2011

I Need to finance a new home and get more to pay my Debts?

I am afraid I do not have a positive result as you expected, however I do have a solution for you.  As you will see we look at all forms of finding a solution for you and there are often more than one option and I would like to explore everything for you.

So my first approach was with an external private lending company whose calculator model produced the below results which gives me a very clear indication as a starter of where things are: - Not attached but it means NO GO they do not want to carry the risk.

We call this the ASSISTANT LOAN and it is important to know that when you apply here this is not the cheapest loan at a rate of 17.5% but it is a decent offer in the debt consolidation approach and often the quickest to get all situations on the road and the idea here is to simply get the funds to kill the credit cards etc and this loan is usually taken and after a year they then assist you back into the big banks fold via a standard mortgage.

Unfortunately, this type of loan criteria is not met as the value of the property vs the loan vs the income needs to make up a minimum of R 150,000 in their loan book before they take on the risk. So I attach this for you just for your records. Use it or lose it!

PROPERTY VALUE - This Lightstone valuation I sent you is what some of the banks use especially FNB, the others usually send out a valuer. So we can assume a value of between Lightstone (R 700,000) and your recent one of R 1,500,000.00.

FNB - I agree FNB will decline, they have the loans from you, they know your risk and they have their internal risk ratings as well, you are highly exposed to them and my suggestion is that even though they are an awesome bank, let’s forget about them for now until things are sorted out

SWITCHING to ANOTHER BANK - Not an easy option especially with the lending banks being as cautious as they are now. Also when the banks switch they will normally only offer a maximum of 80% of the value they find. So if we assume a value of R 1,5 m then we can expect an offer of R 1,200,000 and this is what you owe as it is, plus there are some costs and expenses in switching – so close this avenue for now.

Buying a NEW HOUSE - OK, attached is a copy of your credit report and as you are aware there are some issue here that will prevent a new loan. Whether you use us, a bank or another mortgage originator or bond originator it remains the same as we all work through the same credit management at the banks. Whether it is standard bank, FNB, ABSA, Nedbank.
Even with these been settled, they are still on the credit reports and they are bank adverse’(FNB) – so that closes the door almost 100% - this scares the banks more than anything.  This includes getting personal loans (However i could be wrong, but this defeats the purpose as these are expensive.

You have to make arrangements to get these removed and I would speak with Transunion ITC on 0122 2146000 and Experien on 011 7993400 find out how to get these removed. So this closes this door as well until this is cleared up.

1. I see you were paid a bonus – use this to kill some of your credit cards today, tear them up and move forward. They will and do cripple you financially no matter what you do. The credit card interest rates are prohibitive.

2. If this is not possible then you need to: Kill one of the cards off immediately or over the next month or so and close it forever.

3. Increase your bond payments by R 200 pm and after 2 months ask FNB to extend your bond from 20 to 30 years and ask for a better rate.

In three months time then you can look at this again, but right now you need to address your credit record first and that will take at least a month or so. Then I suggest we re look at this. I wish I could have been more helpful but unfortunately in this credit climate lending is tight and any form of credit risk scares the lenders 100%

I am thinking of you!!!!!

Monday, 28 March 2011

I want to finance a home and my bank will not give me an interest rate before I sign the OTP - Please Help?

So this morning I found a request in my inbox: And felt like a knight in shining armour!!

Morning, I hope you are well and that business is looking good on your front.  I tried to phone you, but I understand that you were out of the office so here goes.

Do you remember chatting to LXXX about two weeks ago in connection with a bond application? She has tried to obtain a bond through Nedbank, but is seriously battling with the service there. Can I please ask if you can assist in this matter? I please need someone on the ball and professional like yourself to give LXXX and her family the service they deserve. May I please ask that you be in contact with LXXX’s father on the e-mail address above as well as 08Y YYY YYY as i need to have a bond registered as soon as possible and of course, at the BEST rate you can possibly organize! I will be using Attorney XYZ on this. LXXX has not signed an offer yet, as she has battled for three weeks to get an interest rate out of Nedbank and would like to know what she is getting involved in before she signs anything. So if you can please have a chat to Mr XXXXXXXX and give them a full layout of all costs involved at whatever stage of the transaction, I would REALLY appreciate it!

If there is anything else I can assist you in at this stage, please do not hesitate to contact me!

With kind regards

Property Specialist

Well as you can imagine I had already spoken with the client given all my FREE advice and she still went to the bank, well that's why I love this job. So I replied and the deals done:

I hope you folks are well and I really hope I can assist you.

Ok, first and foremost, this is what the banks are offering in general, it may vary slightly but the truth is this what we see as of today:

Standard and FNB – 100% home loans
Nedbank – they say 100% but we know it’s more like 90% unless the sun shines over your head like a halo
ABSA – 70%

Secondly, no banks offer to lend you the money for costs so you need to raise that yourself, however, whatever the banks offer you, we can raise the balance or difference for you through a product called a starter loan however this is limited to certain limit of amounts.

Interest rates:

Rates are around 9% now, and at the lowest they have been in 30 odd years, so if you want to know what rate the bank will offer you, work on 9%. That’s it, forget about rates until you get a deal and “you may” or “may not” get a better rate.

Affordability: This table shows you what you will qualify for based on monthly income:

So if your income (single or joint) is R 10,000 GROSS per month you can afford approximately R333,333.33 home loan

DOCUMENTS REQUIRED: - as you are employed I will need the following:

ID, latest payslip and three months bank statements and please get the statements stamped at a branch (part of fraud prevention)


You will most likely need transfer fees and bond registration fees, so I assume purchase price is R 750,000.00 and you are looking for approximately R 400,000 home loan(I don’t have the actual figures but it will help us understand what costs are looked for)

Date: 2011/03/28

Property purchase price: 750000.00  
Registered bond amount: 400000.00
                   Initiation fee: 1000.00 Once off Approx
                    Service fee: 48.00 Monthly Approx

Payable to the attorneys:
Registration costs:   4,216.00
Transfer costs:       22,476.00

Total bond costs: 27740.00

I will call you later this afternoon to discuss - what a pleasure, its all about service folks.

Friday, 25 March 2011

Shareblock Finance - can it be done YES YES

So time to think out of the box:

If you want to finance Shareblock then send us an application form and or email us.

Is it easy - NO, Is it do-able - Yes - but remember the banks do not finance share block simply.  Neither, ABSA, FNB, Standard Bank or Nedbank, not even Investec, RMB and the likes.  So whats the catch - nothing, its how we structure this.

We have a few scenarios:

So the answer is absolutely yes - you can finance shareblock.

Short term loan - We can raise a short term loan up to 60 months for the full amount or part of the amount for you. APPLY HERE and select Short term or Personal Loan.
(This has limits which include the amounts, interest rate etc, but we will always quote you first)

Equity Release Finance - Here we will release equity on your property asset - This is only limited to the amount of your property asset and here we can access up to 80% of the equity. APPLY HERE and select further loan.

Free International Transfers - we can transfer your funds from any international destination to a South African Bank account with NO TRANSFER FEES - saves you up to 3% of the amount.  This is underwritten by Barclays Bank and with SA exchange control regulations.
APPLY HERE and click on "our transfer partners".

SA Reserve Bank Forecasts Upswing in Inflation and Interest Rates

Well with the upswing forecast by Gill Marcus Governor of the SA Reserve Bank it is time to start looking at ways to cut your costs, cut your expenses and preparing yourself for interest rate hikes, higher inflation and tougher financial times ahead.

So with our 10 Clicks ahead approach call us today and sign on

enter in your comments: 10 Clicks Ahead to Financial freedom and we will contact you

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South African Repo rate remains unchanged

Well it really comes as no surprise that Gill Marcus left the REPO rate unchanged this month. South Africa's uncertainty with regards to inflation and rising food and fuel prices kind of made us aware of this.

However, if you're a property buyer and in the buyers property market I highly suggest that you keep an eye on REPO's and repossessed properties, as this is definitely time to get bargains in South Africa.

Repo Rate - March 25 2011 - 5.5%

Thursday, 24 March 2011

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