Deposit money for a house

[kokzn]

Hi Guys

I'm currently in the process of buying my first property (R635k)
I didn't save the deposit
All the banks are willing to borrow only up to 90% bond.
I need about R60k for deposit.
I'll also need about R30k for legal cost, but this i can save up because it is only needed end of September.

I'm currently renting, R5764 per month.

Would you advise me to get a personal loan/credit card for the deposit?

 

[JStrike]

Thats not going to work. You can't take a loan to use as a deposit or security for another loan

 

[TehStranger]

Thats not going to work. You can't take a loan to use as a deposit or security for another loan

This. Without at least the deposit you can forget about buying.

 

[Other Pineapple Smurf]

Hi Guys

I'm currently in the process of buying my first property (R635k)
I didn't save the deposit
All the banks are willing to borrow only up to 90% bond.
I need about R60k for deposit.
I'll also need about R30k for legal cost, but this i can save up because it is only needed end of September.

I'm currently renting, R5764 per month.

Would you advise me to get a personal loan/credit card for the deposit?

Beg, borrow, steal and sell yourself on the street ... buy the house!

I was in the same situation last year where I bought the house without even knowing how much deposit I would have. Nothing motivates you like buying your own home. I phoned everybody that ever owed me a cent and every family member who ever said I should phone them if I need help.

Was the biggest rush of my life as I was motivated to not let this opportunity slip by and I could not believe how much money I was able to raise in a week.

 

[Mars]

Beg, borrow, steal and sell yourself on the street ... buy the house!

I was in the same situation last year where I bought the house without even knowing how much deposit I would have. Nothing motivates you like buying your own home. I phoned everybody that ever owed me a cent and every family member who ever said I should phone them if I need help.

Was the biggest rush of my life as I was motivated to not let this opportunity slip by and I could not believe how much money I was able to raise in a week.

This. Have you thought of waiting tables? Seriously.
In my younger days (I assume you are still young) I was able to earn 10k a month some months waiting tables at night at Spur. Tho tbh some months was 5, but still, its a foot forward.

 

[EchoZA]

Thats not going to work. You can't take a loan to use as a deposit or security for another loan

Funny, I did Bank would only cover 90% to a personal loan for the 10% + some extra. 6 months later, had house reassessed and and had had the now 25% difference added to the bond, and paid off the personal loan.

 

[Gtx Gaming]

could use your overdraft on your cheque account , should be cover most of.

 

[JStrike]

Funny, I did Bank would only cover 90% to a personal loan for the 10% + some extra. 6 months later, had house reassessed and and had had the now 25% difference added to the bond, and paid off the personal loan.

Really? I thought revolving credit had been scrapped

 

[Slootvreter]

Really? I thought revolving credit had been scrapped

Nope, just recently a friend of mine bought a flat, and personal loan to cover the deposit.

 

[F1 Fan]

Hi Guys

I'm currently in the process of buying my first property (R635k)
I didn't save the deposit
All the banks are willing to borrow only up to 90% bond.
I need about R60k for deposit.
I'll also need about R30k for legal cost, but this i can save up because it is only needed end of September.

I'm currently renting, R5764 per month.

Would you advise me to get a personal loan/credit card for the deposit?

I wouldn't suggest taking a loan to pay a loan. Personally I would wait a little longer and save up more. I say this only because owning a house brings about it's own costs, which may become hectic.

That said, if you are responsible, there is nothing wrong with taking out the personal loan. It' just not something I would recommend

 

[GoB]

I had to borrow a 20% deposit.

The scenario was that my own bank and the 2 other banks that I had home loans with wouldn't offer anything.. only the 4th bank offered 80% but at a great interest rate.

So I applied to convert one bond to a flexi bond and withdrew the deposit. I omitted this plan and some other figures in the affordability check. They don't need to know, they've got their security.

 

[Batista]

In short, it can be done OP.

 

[noxibox]

Thats not going to work. You can't take a loan to use as a deposit or security for another loan

Unless it's illegal you can do it.

 

[kokzn]

Thanks for all the feedback.

 

[syntax]

Are you also 100% sure you need 10% deposit?
Putting down 5% might have the banks meet you half way and offer 95% bond?

From my estate agent friend and a developer I know, 95% bonds seem to be quite doable.

 

[AchmatK]

When I bought my house 2 years ago I managed to get the seller to inflate the price and confirm that I paid him a deposit. Was a bit risky but we got the lawyers to get the agreement in writing.

Basically the seller wanted R950k and I already knew that the banks were going to request a deposit and that I would need about R40k for fees. Signed an OTP for R1.1m starting that I already paid a deposit of R110k to the sellers lawyer directly, got my bond originator to apply for R990k bond. Seller got his R950k. Value of house today is about R1.5m.

It was risky for both the seller and myself but got the house I've always wanted. The banks actually lodged the bond at R1.1m but only paid out the R990k. I have the option to apply for the difference via an access facility without having to do a new bond application. Bank was standard bank.

 

[inf3rn0]

OP, I know the feeling. Luckily for me I had saved up about 100k, but it still didn't cover up everything (I needed a 15% deposit because I had no credit rating and about 30k admin fees) I managed to borrow a bit from pretty much all of my family members (dad, uncles, cousins) to make up the money for the deposit and admin fees.

I seriously recommend that you exhaust ALL other options (asking family, getting a second job or any of the other suggestions in this thread) before taking a personal loan because the main thing I learned from buying a house is that practically every cent you have after that will go to your house and your cost of living. I was staying with my parents before so I didn't know all of these costs and now that I'm in my own place, I realize I would never have been able to pay off a loan as well as all of the new costs involved in owning a house.

 

[Toitjie]

Hi Guys

I'm currently in the process of buying my first property (R635k)
I didn't save the deposit
All the banks are willing to borrow only up to 90% bond.
I need about R60k for deposit.
I'll also need about R30k for legal cost, but this i can save up because it is only needed end of September.

I'm currently renting, R5764 per month.

Would you advise me to get a personal loan/credit card for the deposit?

SA homeloans would give you a 95% bond... if that helps anything.

 

[kokzn]

SA homeloans would give you a 95% bond... if that helps anything.

I'm actually using SAHM, as well as GreenDoor. it is not up to them to grant the loan, they are just originators.

After all your advice, and careful considerations and discussion with fiance, I have actually decided against the extra loan for deposit. We'll try save up for another 3-6 and trying to find a similar priced house then.

 

[^^vampire^^]

Excuse my ignorance but what is logic behind a bank only giving a 90% loan? Does this mean that if you want a bond for a R1 million house they expect a 10% deposit from your side to make up the R1 million or is this along the lines of I need R1 million rand I will give bank R50k deposit and then they say they will only give R900k?