You can access funds from your existing home loan in different ways. Your decision would depend on your personal circumstances and financial goals, but here are the three ways in which you could use your bond.
The banks’ criteria for the maximum loan-to-value (LTV) depends on the applicant type. LTV is the loan amount offered by the bank, divided by the purchase price of the property.
There are many things to look at when purchasing a property, but the first step is knowing what you can afford. Our bond originators will assist with a prequalification or affordability assessment free of charge.
The Reserve Bank of South Africa (SARB) recently announced that the Monetary Policy Committee (MPC) had decided to raise the repo rate by 50 basis points, to 4.75% with effect from the 20th of May 2022. This is a departure (though not shocking) from a trend that the market had got accustomed to, where the rate mostly fluctuated on a quarter point basis.
In the past two years it has been opined that due to the economic slump caused by the Covid-19 pandemic worldwide, the property market will also not be spared in seeing lower sales.
While that cannot be denied in some quarters, there have been significant sales encountered in some areas in the South African property market. Of course, this is a classic case of going against the grain as any other market was expected to experience lower sales that those actually realised.
Perhaps some of us have been to a mall to buy a few items and soon after purchasing those goods, passed by another shop only to see the very same items at a much lower price! In as much as people react to situations differently, most people would be disappointed to find themselves in this situation.
“Dear Phoenix Bonds, I am encouraged by the excellent and warmly service that my nephew says he received from you. I am writing to you because I have also decided to utilise your services in purchasing my first immovable property. However, may you kindly assist me to understand what a Flexi/Access Bond facility is? Thanking you in advance.
Adriaan, Bedfordview
From the time of visiting a preferred area to hunt for a suitable property, applying for a bond, registering the bond, transferring the property to the day of occupation, it is quite an involved process with many role players playing their part.
With the Russia – Ukraine conflict in full swing, the economic growth prospects of a world reeling from the effects of the Covid-19 pandemic look bleak. A decline in the energy and food production sectors will certainly result in the disruption of global trade, while pushing inflation higher.
Buying an immovable property is one of the most fulfilling experiences in life, and when one embarks on that endeavor, hurdles along the way are definitely not appreciated. This is why more and more home buyers are finding it much easier and convenient to use the services of bond originators in the application process of home loans.
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