Quick Home Loan Deposit Question..

[KevinKevin]

I am in looking into grabbing a small property to rent out in the next few months and I have a quick question regarding the deposit on a loan.

I have R60 000 to put down now, but in a few months I will have another R20 000.
Will it be better to wait to get the other R20 000 and deposit R80 000? Or will depositing the R60 000 now and then paying in the R20 000 later have the same effect on my monthly payments, or will I be locked in at the monthly installments the bank gives me when I have taking the loan on the R60 000 deposit?

Thanks for the help.

 

[Pho3nix]

Do you have the attorney fees etc? Cause that’s were your R80k is going.

Else spend the R60k on lawyer fees and the R20k will decrease installments or interest.

Or

Put the R60k deposit in and add the R20k later to decrease the installments or term after the car is registered.

 

[TechGirl04]

What is the price of the property you want to buy?

 

[Recallza]

Multiple routes to take, you can wait and put R80k in as a deposit (I don't think its necessary as a deposit is to show good faith for good interest rate)

You can put the R20k in afterwards, and get the bank to do a recalc so that your monthly installment goes down, or you can put that R20k into the flexi-bond to bring down your monthly interest, and still have access to that R20k if you should ever need to.

As Pho3nix said though, you'll be charged transfer & bond fee's... so make sure you have that amount available

 

[KevinKevin]

Thanks for the replies everybody. The transfer and lawyer fees have been calculated separately.

@TechGirl04 There are a few places I am looking at that range from R250 000 - R400 000. With the sweet spot for properties I feel have some potential in the next few years being around R300 000.

@Recallza That is exact the info I was looking for. Very informative. Thank you very much. The reason I was asking is purely to figure out if the monthly installments will go down, if I put in a little chunk of money later. That is what I need to happen. So you have cleared it all up for me.

 

[Recallza]

Thanks for the replies everybody. The transfer and lawyer fees have been calculated separately.

@TechGirl04 There are a few places I am looking at that range from R250 000 - R400 000. With the sweet spot for properties I feel have some potential in the next few years being around R300 000.

@Recallza That is exact the info I was looking for. Very informative. Thank you very much. The reason I was asking is purely to figure out if the monthly installments will go down, if I put in a little chunk of money later. That is what I need to happen. So you have cleared it all up for me.

My pleasure dude, I don't know if all the banks allow you to do a recalculation (Althought I assume they would), but I can confirm that FNB does allow it.