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Trying to Obtain a Home Loan? Our Bond Originators Can Advise You

Phoenix Bonds is a leading home loan advisory service provider in South Africa, offering expert guidance to clients seeking to finance their dream home. By leveraging their in-depth knowledge of the South African home loan market and years of experience, Phoenix Bonds helps clients make informed decisions, secure the best interest rates, and simplify the home loan application process.

Home loans - Bond originators Johannesburg

In this blog, we will discuss the numerous benefits of using Phoenix Bonds advisory services when applying for a home loan in South Africa. From saving time and money, to obtaining access to exclusive offers, we will explore why working with Phoenix Bonds is a smart choice for anyone looking to buy a home in South Africa.

Bond Originators South Africa

As a property practitioner, selling property is not the only requirement, but possessing an array of knowledge about all aspects of the purchasing process is also crucial. This ensures that the sale has a higher chance of being successful, resulting in hard-earned income for the practitioner.

Before a sale can take place, the client must typically secure a home loan from a financial institution, but this requires meeting specific eligibility criteria. It is imperative for property practitioners to advise clients on their affordability for a particular property they are eyeing to purchase.

Purchasing a home usually entails paying a down payment that ranges from 10% to 20% of the total purchase price. However, there is an alternative, acquiring a 100% home loan, which eliminates the need for a down payment as the loan is fully financed through monthly repayments.

Potential homebuyers can utilize a bond calculator to predict what home loan they are likely to qualify for and the estimated monthly repayments. This can assist in the budget planning process.

Prior to commencing the search for a new home, it is crucial to know the minimum earnings required to secure the necessary home loan.

Conducting a thorough assessment to determine if the desired home is within your budget is always advisable.

Knowing What You Can Afford

The amount a prospective homeowner can afford in terms of a bond will depend on several factors, including their take-home pay and credit score. Getting pre-approval through a bond originator is a crucial step in determining affordability and the price range of properties that can be considered. With this information, time won't be wasted searching for properties that are outside of the budget.

Generally speaking, to secure a home loan equal to the average purchase price in each province at the 9% prime rate, a gross household income of the following is required:

  • Eastern Cape's average purchase price is R1,048,847 (the most affordable in South Africa), requiring a minimum income of R32,000 per month.
  • Western Cape's average purchase price is R1,778,806 (the most expensive), requiring a minimum income of R54,000 per month.
  • KwaZulu-Natal's average purchase price is R1,482,625, requiring a minimum income of R45,000 per month. *These calculations are based on a 20-year mortgage at the 9% prime rate.

However, potential buyers must remember that the purchase price is not the only cost to consider. We advise you to not only have enough room in your monthly budget for bond repayments after living expenses, but also to save enough to cover upfront costs like bond fees, transfer duties and fees.

Phoenix Bonds – Bond Originators South Africa

Buying a home is a wise investment for your future finances. Consider speaking with our professional bond originators to understand the local market before starting your house hunting journey.

Contact us to find out how we can help you.

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