Leading with good news for the South African economy – an increase in GDP growth projections, inflation remaining within target, SME’s staying afloat post-COVID and the World Bank extending a loan for the development of alternative energy solutions…
The decision by the Monetary Policy Committee (MPC) of the Reserve Bank not to raise interest rates again has provided a candidate for “good news item of the year”. With a bit of luck and a further drop in inflation over the next two months, rate cuts could occur before year-end.
Buyer prequalifications are the very beginning of a smooth and successful sale process, and as such should not be left to the administrative department. We ensure that all prequals are completed by an experienced consultant to guarantee the feedback is right, relevant, and swift. We'll not only give you a home loan amount, but also advise on LTV and income restrictions. If the buyer is not ready to purchase, we work with them until they are.
The late 1990s and early 2000s witnessed the growth of mortgage origination companies in South Africa. These companies acted as intermediaries between borrowers and lenders, helping borrowers secure mortgage loans by matching them with suitable lenders and assisting with the application process. Mortgage origination companies played a crucial role in increasing competition, streamlining processes, and expanding access to mortgage finance.
The closure of deeds offices has a significant impact on the property market. Without the deeds office, property transactions cannot be completed, and buyers and sellers are left waiting. A deeds office closure directly affects the sellers, buyers, property practitioners, attorneys and bond originators.
Commercial bond applications are notoriously complex and time-consuming. Submissions from bond originators are typically a ‘lead referral’, with no pre-assessment of the client. Phoenix Bonds offers a point of difference - we aim to streamline this process and ensure that only the applications with merit will be submitted, to ensure that a consistent stream of qualified buyers are delivered to our banking partners.
To understand what your home loan repayment is made up of (in terms of principal and interest), you first need to understand compound interest, and how it works in reverse for debt.
Many homeowners don’t understand the difference between a market value and a bank value. This is particularly important when a homeowner wants to refinance a property that was previously unbonded, or paid off.
It can be a shock when the bank valuation comes in below the market value they had already assessed in their head. So, why does this happen? How can two “values” be so different for the same property?
Purchasers buying property for R650,000 and below will potentially qualify for FLISP, a government subsidy for first-time homebuyers. FLISP can be used to cover transfer and bond registration costs, thereby allowing the purchaser to buy a home without upfront savings.
The Monetary Policy Committee (MPC) meets six times a year to set interest rates and battle inflation. Economists’ projections can be varied, but the result is typically in the middle. A collection of estimates across the industry has allowed the team at Phoenix Bonds to put together an “average” interest rate forecast for 2023.
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