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Posts Tagged 'home loan interest rate'

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Who is MORCSA to a mortgage originator?

The Mortgage Origination Council of South Africa (MORCSA) serves as a pivotal industry body representing mortgage originators—professionals who facilitate home loan applications between prospective homeowners and financial institutions. Established by leading origination firms such as Ooba, BetterLife Group, and Multi Net Real Estate, MORCSA advocates for industry standards, consumer protection, and regulatory clarity in South Africa’s home financing sector.

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Why Temp Loans Wreck Your Credit Score and Stop You from Getting a Home Loan

n South Africa, it’s not uncommon to face financial shortfalls before payday. For many, the quick fix seems to be a temporary loan — fast cash with little paperwork. But what looks like a lifeline can actually turn into a long-term financial anchor, especially if you’re dreaming of buying a home.

Here’s why temp loans can be far more damaging than helpful — and why using your overdraft facility (if you have one) might be a smarter move.

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How to pay less interest on your home loan

Buying a home in South Africa is one of the most significant financial decisions many people make. Whether you’re a first-time buyer or a seasoned homeowner, your mortgage (also known locally as a home loan) is likely to be your largest long-term debt. Understanding how mortgage interest works — and how to pay less of it — can help you save hundreds of thousands of rand over time.

 

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Was your home loan declined? You’re entitled to answers.

It happens far too often: a hopeful homebuyer applies for a bond, only to be told that their application was declined—without a proper explanation. Many people assume that’s the end of the road, and they walk away discouraged, confused, and unsure of what went wrong.

But here’s the truth: You have the right to know why your application was declined. In fact, South African law is very clear on this.

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What is the real interest rate and what does it mean?

The prime rate has decreased three times by 25 basis points since September 2024, bringing the current prime rate down to 11%, which is good news for homebuyers. But why is it taking so long for the market to respond?

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Financing a half share transfer of property

If you’re buying or selling a half share of a property, you may think the process will easier than buying a property outright, which is a common misconception. There are many legal intricacies, valuation considerations, and co-owner agreements that play pivotal roles.

This article relates specifically to the buyer of a half share transfer, and their cost and financing considerations.

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Silver Linings (25 July 2023) by Dr. Roelof Botha

The decision by the Monetary Policy Committee (MPC) of the Reserve Bank not to raise interest rates again has provided a candidate for “good news item of the year”. With a bit of luck and a further drop in inflation over the next two months, rate cuts could occur before year-end.

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The Next Interest Rate Hike: What It Means for Your Home Loan Payments

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.

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What to look for when comparing Home Loan offers

It’s great to have a selection of home loan quotes to choose from. You can save yourself significant amounts of money in the long-term by choosing the best home loan quote. But how do you determine which one is the best?

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SARB Raises Interest Rate - Of Interest Is What One Can Do

The Reserve Bank of South Africa (SARB) recently announced that the Monetary Policy Committee (MPC) had decided to raise the repo rate by 50 basis points, to 4.75% with effect from the 20th of May 2022. This is a departure (though not shocking) from a trend that the market had got accustomed to, where the rate mostly fluctuated on a quarter point basis.

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