Affordability and Your Homeloan

Affordability and Your Homeloan



Affordability is critical when applying for any form of loan.


Always we have to live within our means but sometimes because we want something so badly we end up spending more than we can afford. Well not in home loans as the banks came up with a strategy to make sure that this does not happen.


The banks, Standard bank, FNB, Nedbank, ABSA all use a ratio which they call the repayment to Income ratio (RTI). This is the percentage of a consumer's monthly gross income that goes toward payment of the bond or home loan and it is 30% maximum, or 30% of your monthly salary. I would say it’s better to find out how much you qualify for beforehand – before you waste your and the agents and everyone’s time only to find you do not qualify.


Let’s say you earn R15000.00 per month and want to know how much you qualify for?


Here is an affordability calculation for you;


Calculates the maximum bond you qualify for based on your monthly income


Date: 2011/04/11


Information Provided Calculated Results


Property use: PRIMARY / MAIN RESIDENCE


Interest/Base Home loan rate: 9.00 % Affordable loan: R 500,152.29


Monthly repayment: R 4,500.00


Customer rate: 9.000 %
Repayment-to-income ratio: 30.00 %


Gross monthly income: 15000.00


Net monthly income: 7000.00


Gross monthly expenses: 8000.00


Bond term: 240 months or 20.00 years






According to this calculation you do qualify for the bond of R 500,152.29 and remember you still need money for the transfer and registration fees as well as a bank initiation fee, so budget carefully.


However, let’s say for instance you did not qualify for the bond, what were the options?


The obvious one will be to look for a property within your range. It may happen that this is your dream home and you wouldn’t trade it for anything, then you can either look for a co-applicant to come in with you and jointly you qualify. You have to bear in mind that the co-applicant’s credit record should be good because even if it’s a co-applicant you will be declined if the credit record is bad.


If you don’t want them to be a co-owner on your property then they can have a family member stand surety. With surety ship, the one standing surety has to qualify for the bond on their own and the credit record or score has to be good according to the banks criteria. This is where we say terms and conditions of banks apply.


That is not all, Globalfundi have introduced a new product called the Home Starter Loan which is aimed at helping you get you dream house. This is a mortgage aligned loan which only a person with bond which has been granted can apply for and you can apply for up to R70,000.00 which you can use to pay the difference or to pay the attorneys fees. This could give you that elusive 100% loan you are looking for.


They say the beauty is in the eye of the beholder and I say today know what you afford so that you can experience the beauty of owning your property as it is all in your affordability.

L Your mortgage consultant

2010 - Accomodating the GLOBE!

It's been such a long time since I managed to chat to my audience that I actually forgot to wish everyone a MERRY CHRISTMAS and HAPPY 2010.

May 2010 be the year that everyone makes a success of their personal and business lives!

In an attempt to globalise our business, Wizard home loans (http://www.wizardmidrand.com/) have now introduced translation software for the website. This translations software allows our GLOBAL audience to translate our home page into over 40 languages.

Surf to http://www.wizardmidrand.com/ and check out the translation software in the TOP right of the website. It's a service offering from GOOGLE but it's awesome. This will be replicated across our entire site to assist our GLOBAL audience in understanding what we're talking about.

CHAT SOON!

LOAN WHO? OH You mean OOBALINK!!!!!!!

So now that OOBA has

fully integrated LOANLINK

into the fold -

OOBALINK

has been born.

Parent and grandparent - oobaLINK and ooba have established their footprint on the african planet with offspring WIZARD and QUANTRO.

Saul Geffen - oobalink's pappa and Piet de Jongh - oobalink's pappa both firmly agree, this is the force of the future and the others will always be followers. First as Mortgage Originators, first as MO franchiser's, first with the ooba Insurance products and first with the best service offering you can get. Good boys!!!!!!!

Not the DODO but the CROCODILE (By the way did you know that the first known contraceptive was crocodile dung, used by Egyptians in 2000 B. C.[Does this explain Crocodile Dung Dee?]!! )- SURVIVING the MORTGAGE JUNGLE and growing, growing and getting better daily.

Strong mortgage originator brands such as WIZARD are now even stronger under the wings of ooba and the other brand QUANTRO also gets the same kick into life - its great to see.

WIZARD - who are the strongest franchise brand, is run by innovative entrepreneurs and focus 100% on client satisfaction. Like the all the animals in OOBAWORLD, welcome to ooba LIFE!

Change With The Times! A Word From The Wizard Director Team!

“You can’t be a Real Country unless you have a beer and an airline – it helps if you have some kind of a football team, or some nuclear weapons, but at the very least you need a beer.” Frank Zappa (1940 – 1993) rock and roll musician

“You can’t get a Real Bond unless you use a Real Bond Originator - it helps if you have a family banker, or closely related credit controller, but at very least you need a Bond Originator” Bruna "The Queen", Rock and Roll bond originator.

Bond Origination cannot be Real unless it offers the best choices to our applicants... we believe that a conservatively managed bond application is the only way to go ahead when putting together a home loan application. We, as bond originators need to be increasingly prudent for our clients so that they can buy what they can afford.

We want to continue building a strong working relationship with our clients even while fundamental reasons for negativity are undoubtedly of concern. Keeping things positive. Wizard Home Loans.

South African Property Market 2008

So with tonight being the last night of 2008 it's time for the SA Property Market 2008 prediction :)... Sounds like fun, lets see how accurate we are. For those of you sitting at home waiting for some new BLOG posts, lets hope this keeps you somewhat, entertained.

Roundup of 2007
There's been some major changes and impacts in the South African Property market over the last 12 months. We've seen the rise and fall of some of South Africa's supposed fraudulent bond originators especially the story of Rudco Finance which the SA Property Team followed extremely closely. I just want to say though, that it's great to finally see South Africans standing up for their finances. It seems gone the days where fraudsters would just walk over us. A good positive to take into 2008.

Of course, who could forget the introduction of South Africa's National Credit Act. This amazing introduction by the government and financial lending boards has brought a stop to the reckless lending of credit. There was a stage when South Africans were in such financial debt, and didn't realise it. Well, we do know. And financing your property is no longer as easy as filling in a form.

We of course had the lovely problem of inflation, which after reading the Sunday Times news paper this morning does not seem to have been fixed yet. South Africa, under immense pressure, with an inflation rate sitting at around 6% is now feeling the brunt on our home loan interest rates. Interest rates have increased 4.5% over the last 6 months with talk of another 0.5% increase in the next quarter.

So after writing this article, I've decided that instead of predicting 2008's behaviour, I'm going to leave you with some tips, especially for the youth, and those looking to invest in property for the first time, in South Africa, and wherever you may be!

Tip 1 - Don't over expose yourself with too much credit! Credit is good, but make sure you have at least one account with a reputable store like Edgars.

Tip 2 - Don't buy property to your limit. I know we all want that 3 bedroom house in Clifton, but start small and work your way up! A site like myroof.co.za or privateproperty.co.za are great sites, no need to pay estate agent commission fees either.

Tip 3 - Use a reputable bond originator and someone whose a GOOD and RELIABLE financial advisor! - See Wizard Home Loans.

Tip 4 - If you're in Debt already and you are listed, make use of services such as The Debt Doctor, who provides free financial advise to those who can't afford to pay for it.

IF YOU WANT A GREAT BOOK WITH GREAT ADVICE - Buy the Suze Orman book advertised on this site - http://www.wizardmidrand.com/home-loans/debt/debt-doctor.html.

So that's that folks. Have a wonderful New Years and be SAFE!!!!

WizardMan Out for 2007!

Home Loan Referrals! 0.35% Commission!

Wizard Midrand are starting a new online HOME LOAN REFERRAL campaign. With a selection of banners to choose from Wizard Midrand are offering home loan sites and South African property sites the chance to start generating income for themselves.

Wizard Midrand will offer 0.35% commission for any successful bond applications done through their site. If you're an estate agent or run a property site Wizard Midrand offer extremely good commission structures too...

If you think it's sounds pathetic let me give you an example:

You bring in 5 bonds of R 500 000.00.
That's going to make you R8750.00 extra PER MONTH!

Bring in 10 of those averaging R 1 000 000.00 a bond which by South African standards seems to be your average bond will make you R35 000 per month. It's a no brainer people...

If you're interested contact Steven on steveng @ gmail.com

BANNERS ARE AVAILABLE IN THE FOLLOWING SIZES:

120 x 240
120 x 60
120 x 600
125 x 125
250 x 250
350 x 60

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