FNB Home Loan requirements for Non-Resident application to purchase property in South Africa

If one or more of the applicants are Foreign National or Non-residents, the application will be treated as a

Foreign Choice application.

Non-Residents:

A Non-Resident is a person who is not a South African and who is living and working abroad.

Requirements:

• Valid Passport, i.e. with a future expiry date
• 50% of purchase price has to be introduced from abroad. These funds should be paid by the applicant to the registering attorneys and proof of this deposit is required for the Excon application
• Excon approval will be required before the loan can be finally approved
• Excon application fee of R1140 payable by applicant

Foreign Nationals:
A Foreign National is a person who is not a South African and lives and works in South Africa on a temporary basis.

Requirements:

• Valid Passport, i.e. with a future expiry date
• 50% deposit and proof of the source of these funds must be provided to the registering attorneys
• Valid temporary residence permit, i.e. with a future expiry date. Please note that application for a new temporary residence can be conducted 3 months prior to expiry. An expired temporary residence permit will delay registration
• Employer’s letter confirming employment in South Africa
• A Foreign National Declaration signed at the bond registration attorneys
• An active primary cheque account with FNB for at least 6 months

Foreign National and Non-resident exclusions:

Lesotho, Swaziland, Namibia and South Africa are part of a Common Monetary Area and therefore, applicants from Lesotho, Swaziland & Namibia will be treated as South African applicants;

• Juristic entities excluded
• Additional properties excluded. Foreign Choice is only available on a NEW property, and only one property may be registered with the bank
• Switches from another financial institution excluded

Foreign National and Non-resident access to funds:

Non-Residents & Foreign Nationals are not allowed to access funds from the home loan after the initial payout is made on registration of the bond. This includes Flexi Option, Future Use, Prepaid, Readvance and Further Loan.

If you need further assistance, please fill in the online form here - http://www.wizardmidrand.com/home-loans/bond-application-form.html

Common Debt Pitfalls - get a home loan!

Here is a list of the most common debt pitfalls that South Africans tend to make – avoid these and turn your

credit record around, and before you know it you will be able to approach a home loans advisor to assist in applying for that bond to buy your dream home.  Thank you Wizard Midrand for this article.

Here’s a list of the eight most common financial errors made by South Africans which you should avoid at all costs:

·         Consumers automatically take for granted that interest rates will not go up when they buy a property – this is when they make the mistake by buying a property above their means.

·         Males in South Africa often go to micro lenders to finance their “lobola” which means that traditional weddings often start off on a bad financial note.

·         Having a home repossessed is perhaps one of the most debilitating things that can happen to anyone, and often people are too afraid of what the Jones’s will say; this leads to many home owners dragging their feet to move to a smaller more modest abode.

·         The home that is affordable is usually replaced by a rental option that is just as upscale and as expensive – all this to save face!

·         Using a balloon payment option to finance an expensive car is insanity, but it is done more often than not. The sad reality is that many of these individuals driving around with their expensive “balloon financed” vehicles cannot even afford to replace their tyres; these cars are then traded in at a loss and in the end the car owner loses a substantial sum of money.

·         Money is a taboo topic in many relationships which is only discussed once funds have run dry - it is a fact that many marriages break down to a lack of communication, especially when it comes to money.

·         If you owe creditors money, random debt payment is not the way to go forward – rather put together a solid repayment plan and stick to it at all costs.

·         The creditor who shouts the loudest usually gets paid first – remember to stick to your plan to ensure you become debt free in the near future. And for heavens sake get a free credit report.

Don’t guess what you owe in total – work out a plan, stick to it and work out what you owe your creditors in total. This way forward will ensure that your credit record is corrected over time, making you bond ready when applying for home loans.

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%

There is no problem with Hoedspruit - 100% home loans available.

There is no problem with the estates in Hoedspruit.


Obtaining finance and a home loan even a 100% home loan is possible.

Why there are so many properties available, especially vacant stands is because when there was the property boom about 5 years ago, developers climbed on the band wagon and started developing all these estates. Some were great and some not.

As you know Hoedspruit is a small town so without the outside and overseas buyers, who became fewer and far between, when the market dropped, these properties could not be sold.  But it seems to be changing.

Over the past year the market has gradually recovered and we have seen more movement as far as property changing hands is concerned and Hoedspruit seems to have become the destination of choice and International home loans, mortgages and banking has been a normal occurrence once again.

Hoedspruit is a lovely little town with a  friendly and caring community that attracts one time visitors to become residents.  So looking for finance contact your favourite financial wizard.

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Levies - do not be misled at all

This is not just one large unwanted expense that owners are oblige to pay and unique to sectional title units and also not part of your home loan.
Full title owners and share block owners have the same obligations - that's right.

These are the kind of costs included in levies:

Water and electricity, refuse removal, gardening service, homeowner insurance, security systems, plumbing roof, painting, swimming pool, gym, cleaning materials and a management fee cost and all of this information is available from your body corporate.

Buy to Let in the UK - get 80% LTV

Did you know?  Buying UK Property has never been better. There are actually currently 6 lenders available with home loan products available at 80% LTV and one offering even more!

So let us assist you in your BTL (Buy to let) deal;

No limit to existing number of BTL properties Limited companies No minimum income First time BTL purchases Holiday lets Minimum valuations from £50000 Maximum loan 1000000 Fee assisted products Long term fixed rates Money transfer service anywhere in the world - save thousands Exchange Control services for South Africans. Some of these products are intermediary exclusives that can’t be accessed direct from the lender so if you would like more information please CONTACT US ONLINE

Could you manage an interest-only loan?

Incredible deal isn't it?

So incredible that it's sounds like it's not real?

So great that it allows you to free up money every month. It drops your monthly installments and you can afford WHOLE lot more house.

Now interest only loans this may be the perfect investment opportunity for those that know how to handle their finances. If you're a good personal financial advisor and you don't buy more mortgage than you can handle, I say go for it.

If you're not, I say contact a mortgage broker that offer normal home loans and don't be silly.

So what's the catch and why the advice, you may ask, well, lower monthly installments, ZERO equity for years and then BAM BAM BAM, monthly instalments to floor mother Russia.

You see interest only loans allow you to pay interest only, for a period of x years depending on the lender. The problem with this is that once those x years have passed by all those monthly payments you missed out, get added to your monthly installments once the interest portion is paid off! YOU SEE! WHOPPER OF A MONTHLY INSTALLMENT THEN KICKS IN!

Here's how it might work for a 5 year interest only loan:

• Your payments would be fixed for the first five years at a certain interest rate - lets say, 10%.


• For the next five years, you still might pay(depending on your options) just interest on the loan, but the rate would be variable and could increase by 1 percentage point every year, up to a rate of 15%.


• In the 11th year, the rate remains variable, but the loan requires you make both principal and interest payments.

So the interest only loan is really for the investor who's looking for a quick in quick out option and is looking to sell his place before the 11th year or before the interest + loan payment option kicks in. Just remember though, that by choosing your interest only option, you're giving up the chance to fix yourself in with a good low interest rate and you could be kicking yourself in the teeth if you're not careful.

WizardMan out!

Home Loan Interest Rate Increase - AGAIN!

I don't like starting Friday's off with bad news, so let's start off by saying;

"THE BOKS ARE GOING TO KICK SOME SERIOUS ASS ON SUNDAY!"

Unfortunately that's not the reason for my article. It's with some regret that the home loan interest rate has increased again. We now have a home loan interest rate of 14%.

This is due to the reserve bank increasing the repo rate by 50 points but it really saddens me and I'll tell you why. Food prices are going up, petrol prices are going up and the reserve bank has the cheek to say that the reason they're increasing interest rates is because they want to curb consumer spending. Well you know what, why don't they worry about curbing our damn food prices instead worrying about how much people are spending on luxury items and every day goods...

Sort out the actual problem and let our interest rates be for a while.
DO you know that the interest rate increase has jumped from 10.5% in 2005 to 14% in 2007. That's big man, and it's making it very very difficult for entry level investors and buyers to get into the property market.

On the flip side though, for those of you using your home loan access facilities as your bank account, it now means you're earning an extra 0.5% interest on your money.

Come S.A. lets tackle the actually problems at hand first before making people pay more for MAJOR EXPENSES!

The GUERILLA HANDBOOK for MORTGAGE ORIGINATORS

BY NOW YOU MUST BE AS CONFUSED AS THE MAN NEXT DOOR. MAYBE YOU HAVE BEEN DRINKING THIS TEA.

"This Morning when we drove down the road, we saw 7 garages open on to the street each with a new Mortgage Originator or better known as a Bond Originator offering a new service,where do they come from?"...a confused Lena Lefty

When I received this mail I knew we needed to do some explaining.

Firstly, there are 100's of new bond originators on the market and everyday a new one seems to pop up and offer some FABULOUS new deal , but there is a reality out there. There are the guys who founded this industry with years of seriously great experience and there are the OTHERS who feed off the rest.

Then there are the estate agents who have also set up their own deals with banks and of course there are the BANKS themselves who also want a slice of the action - CONFUSED??? I'm not surprised.

So who are the real guys and whose next in line etc?

Well the original guys on the block with most experience all starting around about the same time are Wizard, Mortgage SA, Bettabond, BondChoice, Quantro.

These guys have the savvy know how and service ethics that set the stage for an awesome business platform.

Then came the rest. When they started , who knows , some are great, some pathetic and each one is a out there to offer you something.

Its either, 5% payback, commission back, No registration fees, Free this and free that, discounted attorney fees, blah, blah, blah, blah .

The truth is someone is taking a slice out of the banks commission paid. That means attorneys are receiving "commission" against discounted fees, Estate agents are getting fees, the client is getting fees and the bond originator will probably be bankkrupt after 6 months.

If you want fees and discounts versus great service well thats your call. ME, I want it done, done properly, no pain and having the financing a magical moment in my life.

So whose the plethora of BO's (Thats Bond Originator not Body odour) out there..here are a few names for you

Kredibond, Ubuntu, Mymortgage, Bond Experts, Bond Aid(Hi bob geldof), Bondfocus, Savebond, HomeloanXpress, BondOption, Bondplus, Bondrelax, Cashrefund, Mybond, Yourbond, Ourbond, Webond, Bondi beachHomeys, JamesB, Bestbond, Bondshell, Dimension Homeloans, Equity, Homeforum, The Bond Operation, Mortgage Impact, Givemeyourmoneyquickly and more and more and more

And of course you have SAHomeloans and Now RUDCO hmmm Slightly different kettles of fish!!!

Well many of these guys sub contract or aggregate through the bigger boys and what I hope happens is that the new National Credit Act starts clearing out the shysters so that mr and mrs Joe Public end up getting what they deserve......

JUST DARN GOOD SERVICE - something we South Africans are permanently looking for!!!!!

Wizard Home Loans sponsor White Lions!

Wizard home loans - White Lions Sponsors

I'm pleased to say that Wizard Home Loans are now PROUD PROUD SPONSORS of the White Lions Re-introduction program. Currently there a handful of White Lions living in the Timbavati Game Park. This is the only White Lion wildlife reserve on the planet and is where the first White Lion was born in the wild...

Wizard Midrand having actively been involved with helping re-introduce the White Lions back into the wild, have now taken a new turn in the sponsorship of this amazing achievement in the world of African Wildlife programs.

Every month 10 people whose home loans have been registered through Wizard Home Loans will automatically become proud members of the White Lions Africa Project. This is of no extra cost to the clients but Wizard will take a percentage of the profits made from those 10 bonds and donate this to the White Lions of Timbavati.

Those 10 lucky people will also receive the following:
1. An opportunity to visit the White Lions and participate in the founding stages of setting up a Heritage Site...
2. Receive a stunning set of White Lions prints

So, if you're looking for a home loan and wildlife is what you're after, Wizard Midrand is your TEAM of experts!

White Lion History

More elusive than the African leopard, rarer than the legendary snow leopard of the Himalayas, and as white as the polar bear of the Alaska, rumours of the existence of pure White Lions have lived in the African Oral Tradition for centuries. But there is only one place on earth were they have materialised – the Timbavati region, bordering the Kruger National Park of South Africa.

Timbavati, the only region on our globe where White Lions have been born in the wild, was recognised as a sacred site by African kings long before President Kruger declared the region a 'national game park'.
The first White Lion sighting by a European witness, was in the Peru area of Timbavati in the early 1940s by Joyce Mostert, whose family owned large tracks of land in Timbavati, and were associates of President Kruger.

If this is just up your alley, read here... White Lions Official Site

When I grow up I want to be a bond originator...

Hello all you fellow bloggers and property GEEKS ;-)... I'm back and I'm pleased to announce that I've managed to get rid of Telkom or is it Hellkom I can't remember!

As promised though, we have our first featured article. WOOHOO! This article comes from a lady who wishes to stay anonymous, purely because she's a little shy and she's a new staff member of The Wizard Midrand Team. None the less, it's a brave start and the beginning of her new adventures as Anonymous "The Fairy" of the Wizard Team.

When I grow up I want to be a bond originator...

When I was just a wee little girl I had big aspirations of first becoming a doctor (until I realized how squeamish I was), then a veterinary doctor (also impossible – see note on doctor). I then went on a school day trip to the local fire station and decided that I wanted to be a firefighter. I was told by my father at the time “over my dead body”!

Enter high school, and I wondered aimlessly between classes of Economics and Accounting, Cooking and Geography (are you getting the idea of my lack of indecision?)

Having matriculated I literally fell into the finance world, having recognizing my talent and interest in it. I have worked in many fields from distribution, manufacture, entertainment and IT.

And suddenly today I find myself in the wonderful, pragmatic, inspiring and challenging industry of Bond Origination.

Knowing absolutely nothing about property (Yes we hire everyone ;-)), it has been a learning curve of note. This is a fast moving, high speed industry, with everyone working at frantic paces! But at the end of the day – there is nothing more satisfying than receiving those two golden words from the bank – BOND GRANTED!

Thanks Anonymous...Looking forward to your next post!

SAVE WITH YOUR HOME LOAN NOW!!!!!

Before any interest rate hikes etc..the're bound to happen somewhere, SAVE with your bond.

Did you KNOW??????
A R 500,000.00 bond at -1% costs you R 5332.15 per month
BUT if you add an additional R 100.00 per month to your payment - Check this out!!!
YOU WILL SAVE:

R 258.76 per month on interest

AND

R 62,103.39 over 20 years......THINK about it

Also you will have access to the extra funds
and
Be in a position to get a better rate from your branch.

Thats where you win!!!!

Check out pay off your home loan earlier

AIP - Approval in Principle

I re-read the article that was posted yesterday about "My first home loan" and realised that it was kinda like reading an article about the latest computer technology available. "You know the latest MP3 trends in Audio Visual technology is the MPEG4 format which is compatible with most converters.... WHAT?!? "

So lets elaborate on some of that mortgage/bank jargon that we've heard before but been to afraid to ask about:

abbreviation: AIP
Approval in Principle

An approval in principle is a confirmation from the banks (that you applied to for your bond) saying that IF you are clear as a client and all credit checks come through clear PLUS your salary has been verified with your current employer, that the banks "in principle" are happy with granting you a bond. This is the first step in the bond process.

Homeloan Tips and Tricks

The Bond Originators - Did you know?

• Up to 49 people can share one home loan.
• You cannot purchase property if you are under 21. Bummer!
• A bank will assist you with the money for your Attorney fees - On Top of a Home Loan.
• If you cannot afford a home loan on your own, you can share with friends, family or even get someone to stand surety for you.
• You should only use 25% of your gross salary towards a home loan. If interest rates rise - AND THEY ARE BOUND TO - you want to be covered.
• A Bond Originator will help you get what you deserve - its hassle free!
• DO NOT PAY A BOND ORIGINATOR - the banks will.
  
• Make sure you check your offer to purchase carefully - better still get a legal buddy to help.
  
• Increase your monthly bond installments slightly, even R50 a month more will drop you bond repayments incredibly over 20 years. Speak to any bond originator or mortgage origination company and they'll tell you. Actually most mortgage origination sites will have bond repayment calculators that will show you how much you'll save every month. Check
  
• Pay lump sums and bonuses into your bond. The quicker that mortgage loan rate comes down the better for you. Plus which other account do you know that will pay you an interest rate of 12.5%
  
• Don’t lower your home loan repayments when rates drop. Keep it up. Make this your monthly "stowe" away for any extra money that you may have. This is recommended by all the top bond originators.
  
• Email THE MAGE for questions!!!!

Mortgages - What are they?

Day 1 in the life of a mortgage originator:

Nobody's viewed my first BLOG posting, but HEY that's no surprise. I'm sure I'll have millions tomorrow ;-)

I thought we'd start the first topic off with a good old question:

"What is mortgage origination?"

I'm going to try not bore you as this is most likely a definition pulled straight out of the dictionary, but at least if you find this page and you're anything like any of my mates (sorry guys) you'll have a clue as to what this blogs about.

Mortgage origination is a well established worldwide. Things may differ slightly from country to country depending on the nature of the residential mortgage industry but the concept is pretty much the same.

In South Africa, where the residential mortgage market is dominated by four major institutions, the concept has a very distinct and unique flavour. The industry has been established for some five years now and could equally have been termed mortgage broking. Put simplistically mortgage originators, looks to attract clients requiring finance for a residential property and then placing that business with one of the major financial institutions (This being the banks, ABSA, FNB, NEDBANK, STANDARD BANK. Those institutions would pay the commission to the originators, thus you pay nothing! - What we do forget to mention here, is that you pay for the bond, transfer fee's etc but you get my drift.

It just makes so much sense in using a bond originator. They do all the hard work for you, they get you the best rate and if you have any financial difficulties or bad credit records, that's where they're ultra AWESOME. Banks can be real crappy in these situations...

Well. Let me go do some work. I've been faffing on this BLOG for too many hours and now I'm doing nothing at work all day. Lets hope nobody reads this BLOG right??? ;-)

Later!