10% rate So whats my savings!

 For every R 100,000.00 home loan you save a minimum of R 33.36 per month or R 8,006.40 over 20 years

If you have a R 500,000.00 mortgage you save a minimum of R 168.79 per month and thats a whopping R 40,509.60 over the 20 years - the price of a second hand car.

Thank you Gill you are on the Marc(us)

Market Update - GBP / ZAR - what do the UK Forex boys say!!!

The South African Reserve Bank cut interest rates yesterday in a move designed to slow down the rapid appreciation of the Rand. Moving rates down to 6.5% the bank expressed concerns that the currency's strength may hinder exports and derail the fragile economic recovery. At 6.5% the Rand remains one of the highest yielding currencies, and has benefitted from strong investor risk appetite and low yields elsewhere (just 0.5% in the UK for example).


Now what do you say!!

Prime Rate DROPS! Awesome Times!

The South African Reserve Bank this afternoon announced a reduction of 0.50% in the repo rate, which will result in the banks’ prime lending rate reducing to 10.00%.

All the necessary changes to our systems will be effected this evening to ensure that our affordability calculators for home loan applications and pre-qualification applications will reflect the new base rate of 10.00%.

This is GREAT NEWS!!!

FNB Housing Finance (Lower Income)

FNB Housing Finance - Rules for Developments – Pre-Valuation Qualification.

To simplify the process for both developers and bond originators, we’ve changed some of the rules that govern the Pre-Valuation of our housing developments for end-user finance:

• FNB Home Loans and FNB Housing Finance will consider providing end user finance (top-structure or building loans) for developments with unit prices <= R500 000


• We will bond a minimum number of 30 units. Developments with less than 30 units will be regarded as retail business and retail rules will apply.
• Income rule for developments where approval has been granted, will be as follows:

70% of customer deals may not exceed the income rule of R15 000 joint or individual.
30% of customer deals may exceed the income rule of R15 000 joint or individual.

Please note that FNB Housing Finance does NOT entertain investors or legal entities.

NEDBANK - A GREAT Balancing Act - to get a Home Loan!!!!

Well I am impressed when I hear a  credit manager tell me what is needed to get a home loan - open policy - nice to see Nedbank .

Three pillars of strength needed folks - thats all so YOU WANT A HOME LOAN then -

RISK - You need to make the bank feel that all the risk is not only on their shoulders but also on yours.  So what do you need for this - A deposit reduces the banks risk and adds yours into the pot, so start saving.  Be a smart finance manager, so manage your accounts and VERY VERY important PAY YOUR ACCOUNTS ON TIME or in ADVANCE.  Never pay late.  Nedbank, like most banks have an internally risk rating of you as a client, so contact your Mortgage Broker and get your risk rating in advance, THEN apply for a mortgage only.

SECURITY - Well no one wants to be left hanging and neither do the banks and this is not particular for Nedbank only.  So make sure what you buy is acceptable for the banks to finance.  If a sectional title flat or apartment get the body corporate financials and make sure the body corporate is in the black (positive cash flow), not to many arrears and outstanding levies, and up to date paid insurance.  Then the bank will feel comfortable as well.  If you have just started a job, make sure you supply your job contract together with a payslip.  Its all about feeling secure. 

Ask your broker.

AFFORDABILITY  - If you want to be declined then dont justify what you can afford.  Remember 30% of your income is the MAXIMUM that the banks will allow you to spend on your home loan.  THATS IT!

DO NOT INFLATE YOUR SALARY AND INCOME! OR DEFLATE YOUR EXPENSES! If it is unrealistic the banks will automatically add an additional 25% to your expenses and once declined on affordability it is very difficult to convince credit managers otherwise.  IT IS TO PROTECT YOU afterall!!!!!!  Ask your mortgage advisor to assist you before you have a bash yourself.

Lovely, easy and A GREAT BALANCING ACT!

Take advantage of SA's 2010 world cup and make some bucks!

Well with the world cup 2010 around the corner we expect many South African property owners to jump on the bandwagon. BAND ON THE RUN – everyone in SA property wants to make some money out of the 2010 World Cup – and why the heck not – everyone else has. Look at the Abu Dhabi inaugural grand prix, everyone was renting their apartment or house out , each Olympic games, Rugby world Cup, Cricket events, Golf, so why not the 2010 World Cup.

So what can we expect and what’s hot right now. Everywhere and everyone is creating 2010 world cup based websites for 2010 rentals, rooms, cottages, packages and in the background the real estate companies are preparing packages of every shape and size to entice the visitors from UK, USA, Africa, Europe, South America and Asia to buy a slice of South Africa and a very tidy profit.

The mortgage originators know that non residents visiting and buying property during the 2010 World Cup will get 50% mortgages and smartly if someone is visiting SA getting discounted currency transfers to and from South Africa for 2010 is an absolute must if you want to save thousands of rands or Dollars or Pounds on transfer fees. So who is offering some exciting stuff.

Well for currency transfers visit Forex Fundi.
Well for information on financing of all kinds – and this you should get to know.

For accommodation and travel – knock yourself out – I doubt of you could keep up – just come to south Africa for the 2010 world Cup – we welcome you with open hearts. Only if you support Bafana Bafana.

DUMELA!