Just can't get the banks to give me a home loan

If you are battling to get a bank to give you a home loan, there is a definite formula to get past this; building up a good credit record is of course the first step in the right direction.

First things first - you will need to build up a good credit record. Many of us are freelancers or work for ourselves – and this is often a huge obstacle if you need to get credit, whether for a home loan or credit for other uses and needs.

Financial institutions want to be certain that you will be in a position to pay your home loan without any problems or difficulties. This is the reason why they scrutinize all your finances really closely and also examine and analyse your income and expenses by using an average on your earnings over a six month period to determine whether you will or will not be able to afford the monthly installments.

If you earn commissions, are a freelancer and your monthly earnings fluctuate, banks will adjust the average earnings down to cater for these ups and downs and will give consumers a fair opportunity to meet the loan agreement.

Banks and lenders always choose the more conservative approach to ensure that applicants will be able to cater for fat months as well as lean months.

If you are thinking of applying for a home loan chances are that the financial institution you approach will go as far back as two years into your credit history. This is to find out whether you are a good payer and up to speed on all your credit agreements. This information is then used to calculate their risk in lending you the money – but there is nothing that formally states that borrowers need to have a credit history to qualify for a home loan.

A problem will aris is if you have no credit anywhere and you have an income that fluctuates due to the fact that you are a commission or freelance worker; you will then have issues trying to get that essential home loan.

Wizard Midrand is here to assist and to guide individuals no matter how they earn their bread and butter – let us take your home loan to the next level; our professional team will do all the leg-work on your behalf, bringing you closer to owning that dream home you always longed for.

Standard bank and 100% Homeloans

It has been quite some time since the banks have offered 100% loans unless you were a client

of theirs and the good news is there seems to be a swing in the opposite direction.

Is this because the mood and sentiment is at a low ebb and clients are moving away from there traditional banks for other savings havens?

Never sure, but the decision by Standard bank to offer 100% home loans to non- standard bank clients in April 2013 is a definite positive swing.

so what do banks offer in general:

Firstly, this changes often so call your broker or call your mortgage originator first,

But as it stands: Remember other conditions always apply.

Standard Bank 100% home loans to all
FNB - will consider 100% home loan to all but favour their own clients
ABSA - will consider 100% home loans to all, but favour there own clients
Nedbank - Only for Nedbank clients
Investec - for Investec clients or meeting strict criteria
SA Home Loans - will consider but more like a 90% loan

Other kinds of offers in general are - These can change

-       Investment property usually max. 75%

-       Self employed clients usually max. 85%

-       Foreign applicants with no green ID books max. 50%

-       Foreign applicant married to South African max. 50 -75% (South African must be higher income earner)

-        Vacant Land 60%