Capitec bank along with SA home loans are now offering customers’ home loan to ensure that their dreams of owning a home become a reality. Before you can consider applying, it is important to calculator your affordability, to check the amount you could qualify for. This will also help you know the list of all costs you need to prepare for before you can make a decision about buying a new home.
How Does a Capitec Home Loan Work
A home loan is a loan offered to you by a home mortgage provider, where the home or property you are purchasing is used as a form of security in a result where you fail to make the loan repayments. Once the bond is approved and registered, the home loan provider gets to keep the home/property title deed until you finish making your payments.
In a case where you fail to make payments, the mortgage provider will start a process of foreclosure which is aimed at selling the house in an effort to get the outstanding amount you are owing. The home loan payment can take up to the period of 20 to 30 years, this depends on your monthly instalments, plus the interest rates. Always bear in mind that the interest rate instalments will change based on how the interest rate increases or decreases. The interest on your bond is based on the current prime interest rate determined by the South African Reserve Bank (SARB).
When you apply for a home loan, a home loan provider consider your age, your income and job stability, other additional income you may have, your credit history which plays a crucial role in determining your loan approval, moreover your other debt and lastly is the size of the deposit you can put down.
The benefits of a home loan include:
- It is quick and easy to apply, you just follow 4 simple steps online
- You are likely to get a reasonable interest rate based on your personal profile, and up to 50% off bond attorney fees
- Capitec home loan and SA home loan will appoint a property finance consultant to guide and support you through each step of the process
- You can easily track your application online at any stage of the process
- Capitec bank uses its unique affordability calculator to give you a detailed breakdown of all the costs you’ll need to prepare for before you can apply for a home loan
For more information on the Capitec home loan and SA home loan you can visit https://www.capitecbank.co.za/bank-better-live-better/articles/buying-a-house/how-do-home-loans-work/