First-time Home Buyer
Bond origination is a complex process that requires a deep understanding of the financial market, risk management techniques and credit analysis. In this blog post, we will provide an in-depth look at credit analysis and risk management.
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Fluctuations in property value and interest rates can also affect prospective buyers. With the current increase in interest rates, the cost of financing rises, and demand for credit weakens over time, resulting in lower house prices. As house prices decline, it can be a good time to purchase property, provided you have enough financial leeway to withstand the risk of potential further interest rate hikes.
To understand what your home loan repayment is made up of (in terms of principal and interest), you first need to understand compound interest, and how it works in reverse for debt.
Purchasers buying property for R650,000 and below will potentially qualify for FLISP, a government subsidy for first-time homebuyers. FLISP can be used to cover transfer and bond registration costs, thereby allowing the purchaser to buy a home without upfront savings.
The South African housing market has seen a period of strong growth over the past two years, with low interest rates and a strong demand for property driving sales and pushing up house prices. However, this boom is beginning to cool off as interest rates rise and the cost of living continues to increase.
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.
Although bond insurance is not compulsory, it can be considered very necessary. We know that there are many costs that come with owning a home and “yet another insurance” is possibly the last thing you want to consider.
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.
The unfortunate reality is that structural damage can happen to anyone. Such damage can be caused by fire, floods, hail, lightning, and burst geysers or pipes. Although building insurance can feel like a grudge purchase to some, having it prevents homeowners from digging into their life’s savings to pay for structural damage.
One of the costs that potential homeowners must be aware of is building insurance. Building insurance is non-negotiable as lenders want to protect their own interests when awarding a home loan to a purchaser.
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