The Monetary Policy Committee (MPC) meets six times a year to set interest rates and battle inflation. Economists’ projections can be varied, but the result is typically in the middle. A collection of estimates across the industry has allowed the team at Phoenix Bonds to put together an “average” interest rate forecast for 2023.
Most homeowners in South Africa require a home loan to purchase a home they want to live in, and paying interest on that loan is part of life. In this article, we unpack home loan interest and explains what it is, how the amounts that you pay are determined and how you can pay as little interest as possible when you buy a home.
When selecting insurance policies, you shouldn’t just be concerned with your premiums. It’s more important to know your excesses, exclusions, and potential payouts. A tailor-made and flexible policy will ensure that you are only paying for the things you need.
There’s a sense of uncertainty out there. Inflation is rising, interest rates have just been increased and share prices have dropped. Predictions of a possible recession are looming. It’s easy for purchasers looking to buy a property to get disheartened, but it’s more important to consider short-term market announcements in the context of long-term economic trends.
Self-employed home loan applications are notoriously more difficult to get approved than other types of applicants – but they don’t have to be. In many instances, self-employed purchasers can afford the bond… it’s just about knowing what the banks are looking for in the documentation. Read the information below and then let our experienced bond originators assist you in the way forward - to get the best possible offer, at the bank that is right for you.
If you default on your bond repayment, your bank can potentially repossess your house and sell it to recover the money that you still owe to them. However, there are some very sound financial reasons why the bank will avoid doing this.
When it comes to your home loan application, geography matters. Banks have an area classification risk rating that is factored into the customer’s overall risk assessment. The outcome of this risk assessment is what determines the price of your loan, or the interest rate the bank will offer you.
The bank will assess your application by way of a sustained affordability test – assessing future economic factors as well as current ones. The main ones include interest rates and inflation. Read on to learn more...
What is a credit score? A credit score, also known as a credit rating, is a number that reflects the likelihood of you repaying money you want to borrow. Lenders like banks and credit card companies will look at your credit profile and calculate your credit score based on that information as well as their own, which will show them the predicted level of risk in lending to you.
It’s great to move straight into a newly-built home with brand new furnishings and fittings. But it’s also important to understand the benefits and risks involved with the different types of developments, particularly if you are looking to finance the property with a mortgage bond. How do you determine which one is the best for you? Read on to find out.
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