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Home Loans

Are you considering to:

· buy a property,

· build, expand, renovate a home,

· cover some debt?

Then apply for a Home / Property Loan through Southern Money. If you cannot get it through us, you will not get it anywhere else, because we process to the most important financial intuitions.

To Apply: Click [ here… ] 

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DEFINITION of 'Mortgage Bond'

It is a secured form of money lending. A bond [agreement to lend] secured by a mortgage [money lend] on one or more assets / properties. These bonds are typically backed by real estate holdings and/or real property such as land, homes etc. In a default situation, mortgage bondholders have a claim to the underlying property and could sell it off to compensate for the default.

Mortgage bonds in South Africa

A mortgage bond is a bond secured by a property (usually residential). There are four types of mortgage bonds:

  1. The most common is a variable interest mortgage bond
  2. Over the last few years we've seen the introduction in South Africa of fixed rate mortgage bonds
  3. Capped rate mortgage bonds
  4. Guaranteed decrease rate mortgage bonds (uncommon)

There are a number of suppliers of residential mortgage bonds in South Africa:

  • ABSA, FNB, Nedbank, SA Home, Loans, Standard Bank
  • Southern Money processes Home Loan applications to all and more of the above financial institutions

Deposit requirements

Banks changed their policies in 2008 to require a 5% deposit of the value of the property before securing a home loan. Gavin Opperman, the Absa group executive for secured lending retail banking, then explained rationale behind the decision as follows: "The current economic factors are putting pressure on consumer affordability, which means we need to encourage South Africans to avoid the risk of being overindebted. We believe that when consumers start factoring a deposit component in their buying decisions, they are more likely to buy a home closer to what they can realistically afford."

Nowadays the deposit requirements varies from institution to institution so call our Southern Money professionals to get the latest information.

And remember: It cannot harm if you apply and you never know the outcome if you do not apply. So apply today with Southern Money.

Team: Southern Money

Taking you beyond the future

To Apply: Click [ here... ]

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    Home Loans

    Home Loans

    Are you considering to:

    · buy a property,

    · build, expand, renovate a home,

    · cover some debt?

    Then apply for a Home / Property Loan through Southern Money. If you cannot get it through us, you will not get it anywhere else, because we process to the most important financial intuitions.

    To Apply: Click [ here… ] 

    Write your review