Home Loan and NCA

Dolby

Dolby

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I know the NCA now take all your expenses into account and see at the end of the day what you can afford.

But is there a percentage of available income that they take?

For example a person has R10,000.00 left after everything is paid (groceries, entertaintment etc) and the home load will cost him R9,000.00 - would they approve?
 
Doesn't really work that way. The NCA see's (or gives lenders the ability to see) what debt you have in total. And they work out the _total_ installments needed per month from you and compare that to your salary.

This includes credit cards (that might be paid off) with limits (they work on the maximum amount of debt you can incur)

Usually it worked out as 35-40% (unless it's changed since a few years back) of what you earn.

So if you earn R20k, they'd only allow you to have a bond of up to 40% of that amount. With NCA they can see what real debt you have currently, so they can adjust and make it less.

I'm not sure if they'd approve on the amount you stated though (ask!?) because you have several other factors that comes into owning a house that people never really consider (one big thing is insurance and other crap like tax)

What did the bank say?
 
Before I make a fool of myself at the bank, I'd rather ask here than the tellers chuckling about me ;)
 
Dolby said:
Before I make a fool of myself at the bank, I'd rather ask here than the tellers chuckling about me ;)
Click to expand...

Ah I see you're aged 55 and above? lol. Phone the guys. Don't go into the bank. Phone several banks and ask. That's what the techmology is there for (I thank the inventor of the telephone)

Going into the bank never occurred to me, that was through 3 car finances and 1 home loan... I didn't visit a branch at all. Not even on application for my personal loans or credit card limit increases...

:p
 
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