Odds of getting homeloan

[Other Pineapple Smurf]

There's a 25 year old earning 13k take home 10k car is paid up not much monthly expenses +- 1.5k has 80k saved up for deposit and transfer costs etc. What are the odds of him getting a home loan to the value of 400k?

Work through a bond originator and SA Homeloans. The bond originators know how the system works and they are driven by commission (which the bank pays).

The bond repayment would be R3500 (guesstimate) and levies another R500-R1000 as at that price you would be buying a flat or in a gated community, or a township.

No harm in asking.

 

[TehStranger]

Ahh yes, not often at home, some respite from the dustbin nazis aka the body corporate

Something tells me you don't like complex/flat living.

 

[Other Pineapple Smurf]

R400k buys a broom cupboard aka townhouse

Depends how full of crap you are. I just saw a very nice bachelor flat 5 minutes walk from my house for R275K - we are thinking of putting in an offer. I've also seen a similar place with a better address go for R1 million and that is about 15 minutes walk from my house.

 

[Other Pineapple Smurf]

Something tells me you don't like complex/flat living.

Do you blame him? I can stand outside my house and fart & swear as loud as I want to. I can (and do) scream F*** the neighbours!!!! because I can.

When my neighbour complained about the appearance of my roof, I gave her a F**** you!

You can't do that in a flat, I've tried

 

[Falco]

Which Bond originators do you guys recommend?

this

 

[Devill]

Makes no difference what his monthly expenses are really...

His Gross is R13k, as per the NCA the bank cannot give him any more than 1/3rd of that... (less affordability of course)... which is about R4k per month, so on a 20year Bond he is at the extreme end of affordability at around R420k.

But as he stated he has R80k saved up. Thus if R20k went towards fees (extreme), and he had R60k for deposit he would only need a loan for R340k, which should easily be attainable if he has the disposable income available and if his credit record is clean.

 

[ToxicBunny]

But as he stated he has R80k saved up. Thus if R20k went towards fees (extreme), and he had R60k for deposit he would only need a loan for R340k, which should easily be attainable if he has the disposable income available and if his credit record is clean.

Fees would probably be around R24k...

Moving fees, R5k (at least).

Misc cost, probably another R10k (new paint, curtains etc that weren't planned for)..

I had R150k in cash for fees etc when I bought my house 3 years ago... It disappeared VERY quickly....

But regardless of that, even at a R50k deposit, this transaction would be on the low end for the banks, with a client who is at his higher end of affordability, the risk for the bank is quite high so they would be wary of the deal or attach a ridiculous interest rate to it.

 

[Pho3nix]

this

 

[Rocket-Boy]

Fees would probably be around R24k...

Moving fees, R5k (at least).

Misc cost, probably another R10k (new paint, curtains etc that weren't planned for)..

I had R150k in cash for fees etc when I bought my house 3 years ago... It disappeared VERY quickly....

But regardless of that, even at a R50k deposit, this transaction would be on the low end for the banks, with a client who is at his higher end of affordability, the risk for the bank is quite high so they would be wary of the deal or attach a ridiculous interest rate to it.

True but at least with a bond originator they will find him the best rates.

 

[Niner]

A silly little thing - do you have a credit record? You can pretty much forget it if you've never had credit elsewhere. Can't even get a cellphone contract with out it.

 

[ToxicBunny]

True but at least with a bond originator they will find him the best rates.

Agreed.... always use a bond originator.

But understanding the beast that is the banks will help big time.

 

[Wyzak]

I would recommend that you not use bond originators. There was a golden era for bond originators back in the day where they would actually pay you a % of their commission and fight for good interest rates, but now they just don't care anymore. It's not that hard to do yourself and then you can play the banks up against each other and get the best rate.

 

[TehStranger]

Do you blame him? I can stand outside my house and fart & swear as loud as I want to. I can (and do) scream F*** the neighbours!!!! because I can.

When my neighbour complained about the appearance of my roof, I gave her a F**** you!

You can't do that in a flat, I've tried

Don't blame him at all. Plenty of pros and cons to house vs. flat/complex living. IMHO a lovely gated community is the way to go, but a house follows shortly after.

Unfortunately your earning capacity in your early 20s limits the places available.

 

[Sonic2k]

Something tells me you don't like complex/flat living.

Yes you are correct... too many reasons to list here.

 

[bassplayer]

You will qualify for a bond but not a large one. Just remember that there are other costs involved, like levies which could be increased at anytime. Thats assuming you want to purchase in a complex.

 

[bassplayer]

On the bright side you will pay very minimal fees for a house that is 500k or less.

 

[Other Pineapple Smurf]

I would recommend that you not use bond originators. There was a golden era for bond originators back in the day where they would actually pay you a % of their commission and fight for good interest rates, but now they just don't care anymore. It's not that hard to do yourself and then you can play the banks up against each other and get the best rate.

Disagree. My bond originator (OOBA) went out of their way to get me the best deal and then still got the banks to to come back with an even better one.

A good bond originator knows how the banks work. One thing I discovered is that the banks change their lending criteria all the time and unless you have good knowledge of the industry, going direct with the banks is very difficult if you are doing this for the first time.

Anyway, without my bond originator I would not have gotten the good deal that I did get.

 

[Other Pineapple Smurf]

Don't blame him at all. Plenty of pros and cons to house vs. flat/complex living. IMHO a lovely gated community is the way to go, but a house follows shortly after.

Unfortunately your earning capacity in your early 20s limits the places available.

I use to like gated communities but the more affordable ones are like RDP developments. Even a local upmarket one that has an average price of R3 million, the houses are touching sides.

Yes, that was my first prize but there is nothing in my area that was worth it. But my neighbourhood does look like an estate.

 

[TehStranger]

I use to like gated communities but the more affordable ones are like RDP developments. Even a local upmarket one that has an average price of R3 million, the houses are touching sides.

Yes, that was my first prize but there is nothing in my area that was worth it. But my neighbourhood does look like an estate.

Pfft, gated communities with houses that cost less than R10 bar aren't even worth looking at, they're for the poverty spec rich man.

 

[Other Pineapple Smurf]

Pfft, gated communities with houses that cost less than R10 bar aren't even worth looking at, they're for the poverty spec rich man.

True.

They also start off great and then end up looking like every other one after a decade.