First time home owners advice

C

calgal90

Well-Known Member
Joined
Jul 7, 2016
Messages
146
Reaction score
1
Hi Everyone

We are looking into buying our first home.

I am interested to hear from buyers who have recently purchased their first home to try understand what the banks are offering or how best to go about the process.

When did you purchase your first home?
What interest rate did you get?
What percentage bond did you qualify for?
Did you use a bond originator or go to the banks yourself?

Any other advice is appreciated :)
 
Hi,

I actually just signed off the final quote that the attorneys are drafting up the bond/transfer documents right now.

baring in mind this is considered a low cost house i bought.

Fnb gave me 100% at prime +0.25 % (i do bank with them)
Absa want to lob me 11.65% with a 210k deposit
nedbank 90%
Standard bank just never got back.

The estate agent sorted everything thing out for me it was actually a pleasure i just sent in all my documents and they did the rest and got me rates and lawyers (with a bit of discount transfer only) the bond had to go through FNB selected attorneys
 
2 years ago
9.8% linked
100%
bond originator

- Budget an extra ~R50-150k for transfer duty / lawyers fees / etc depending on the value of the property.
- Be sure the OTP stipulates that complete / stamped and signed building plans are to be provided as a suspensive condition.
- Buyers are usually semi-desperate to sell, so negotiate occupational rent as low as possible if you need to occupy before transfer
- Be sure you know what the rates / taxes and levies (if applicable) on the property is and work it into your monthly repayment budget
 
Boom3laar said:
Hi,

I actually just signed off the final quote that the attorneys are drafting up the bond/transfer documents right now.

baring in mind this is considered a low cost house i bought.

Fnb gave me 100% at prime +0.25 % (i do bank with them)
Absa want to lob me 11.65% with a 210k deposit
nedbank 90%
Standard bank just never got back.

The estate agent sorted everything thing out for me it was actually a pleasure i just sent in all my documents and they did the rest and got me rates and lawyers (with a bit of discount transfer only) the bond had to go through FNB selected attorneys
Click to expand...

Almost exact copy of my experience. Bought last year June-ish..
 
Deeds is busy being registered as we speak.

11,4 with SAhomeloans
11,5 with mercantile
10,52 with standard bank
10,2 with nedbank
 
rodga said:
Deeds is busy being registered as we speak.

11,4 with SAhomeloans
11,5 with mercantile
10,52 with standard bank
10,2 with nedbank
Click to expand...

Strange had a few people here at the office saying SA home loans gave them the best offer...
 
When you buy a property, make sure to put 10% down of the purchase price, and have enough cash to cover all the fees to get it on your name. (Even if that is your 10th property ! I obey that rule at all times)

Also make sure the bank that you choose, they have a flexi option available (that is very important, the most important rule of buying a house i would say).

If you are putting an offer in, ask the owner or the agent for the rates and taxes to see what it is valued at (at the council). That way you can see if you are over paying or not

Ask the agent for the financials for the complex if it is in an complex. Ask when last was a special levy charged. With how much is the levies going up yearly (You can see by asking that if the estate is in good hands or not).

Try to buy privately and not through a agent (it isnt that difficult at all)

If you buy less than R950 000 from 1 March 2017, there is no SARS leg payable when you buy from another owner, and only transfer (into your name), and bond costs

You can also buy from a developer, and if the amount is larger than R950 000, also no SARS leg payable

Make sure your credit record is clean and all accounts shows that you are up to day with all payments. Banks use that to rate their risk towards you, if they lend money buying a property

Also take into account, when buying a property, water and ligths, levies (if applicable), life insurance, rates and taxes all counts up (and then the bond amount). So look at the bigger picture and not just a bond.

And if this is your first property, get a pre-approved bond (to see for how much could be qualify for buying a home). It doesnt help you can get a bond for max R1.5KK and you are looking at something R2kk plus.

Hope this helps
 
Last edited:
zerocool2009 said:
When you buy a property, make sure to put 10% down of the purchase price, and have enough cash to cover all the fees to get it on your name. (Even if that is your 10th property ! I obey that rule at all times)

Also make sure the bank that you choose, they have a flexi option available (that is very important, the most important rule of buying a house i would say).

If you are putting an offer in, ask the owner or the agent for the rates and taxes to see what it is valued at (at the council). That way you can see if you are over paying or not

Ask the agent for the financials for the complex if it is in an complex. Ask when last was a special levy charged. With how much is the levies going up yearly (You can see by asking that if the estate is in good hands or not).

Try to buy privately and not through a agent (it isnt that difficult at all)

If you buy less than R950 000 from 1 March 2017, there is no SARS leg payable when you buy from another owner, and only transfer (into your name), and bond costs

You can also buy from a developer, and if the amount is larger than R950 000, also no SARS leg payable

Make sure your credit record is clean and all accounts shows that you are up to day with all payments. Banks use that to rate their risk towards you, if they lend money buying a property

Also take into account, when buying a property, water and ligths, levies (if applicable), life insurance, rates and taxes all counts up (and then the bond amount). So look at the bigger picture and not just a bond.

And if this is your first property, get a pre-approved bond (to see for how much could be qualify for buying a home). It doesnt help you can get a bond for max R1.5KK and you are looking at something R2kk plus.

Hope this helps
Click to expand...

He Speaks the truth.. they take a look at your ITC record and determine your risk. so you got alot of cellphone contracts where your debt is big they wont consider you...

Credit card.
Car Finance.
Insurance.
Cell phones.
Telkom.
Dstv

Thats what could pop on your ITC record that they take into consideration
 
And be honest when you complete your income vs expenses form. That way ANY bank, and I mean ANY bank will see if you can afford it.

And be honest with yourself if you complete that too. Your bank statements will reflect what you are specifying in the expenses.

Buying a home is special, if it is your 1 or 5th or 10th. Every application must be if you are doing your first home by.

Do your homework also (meaning, get that pre-approved bond for starters, look at your current debt), and ask yourself this, no matter how good the interest rate, if it goes up by 5%, what then ?
 
The rule of thumb is, you may not spend more than 30% of disposable income on bonds in total, take that also into account
 
When did you purchase your first home? - August 2016
What interest rate did you get? - Prime less 0.20'ish
What percentage bond did you qualify for? - Don't know, we offered 10% deposit.
Did you use a bond originator or go to the banks yourself? - OOBA
 
calgal90 said:
Hi Everyone

We are looking into buying our first home.

I am interested to hear from buyers who have recently purchased their first home to try understand what the banks are offering or how best to go about the process.

When did you purchase your first home?
What interest rate did you get?
What percentage bond did you qualify for?
Did you use a bond originator or go to the banks yourself?

Any other advice is appreciated :)
Click to expand...

May 2017
Prime -0.1% from Nedbank (I bank with FNB and their rate was horrible)
I gave more than 10% deposit and they obviously lend me the rest.
My estate agent used his bond originator and it was very easy.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X