Buying a home
We understand that this is a serious commitment and want to ensure that you are making the right financial arrangements when buying a home and that you are ready for life after the purchase. As such, before deciding on home ownership you may want to ask yourself the following questions:
You will be guided through all the questions that you have about funding and covering costs of acquiring and maintaining your property and most importantly, protecting your investment going forward.
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Who can qualify for a Mortgage?
You must be 18 years old and over, earning income that can be substantiated, is sufficient to cover the monthly installments and have sufficient funds to cover the initial costs.Pre-Qualification
To get you started you first have to decide what type of home you want. Once you have decided, you can come to us and we will help you determine what you can afford based on your savings and income and offer guidance as to what is required to start the application process.What documents must I have to apply for a Mortgage?
First, you should consider:
Your income: your mortgage payment should be manageable with all your other fixed monthly debt obligations.
Your down payment: when applying for a mortgage, investing more than the minimum down payment enables you to reduce the amount that you need to borrow.
Do I need any funds to start the process?
Yes, start-up funds are required for the down payment which is usually required when buying a home, bank service charges, cost of a valuation report, legal fees etc.
Is any Security required?
Yes, the property will be held as security and must be insured to cover its replacement cost. Life insurance must be taken out for the mortgagors to cover the value of the mortgage. It is also preferred that your salary is assigned to the bank.
What are your funding options?
What will be the repayment period of the loan?Generally, mortgages can be repaid over a maximum of 30 years but this depends on:
This rate is determined by market conditions at the time the mortgage is granted but may change over the amortization period. The amortization period refers to the duration of the loan. Interest is calculated on the daily balance and your account is debited on a monthly basis to cover both the principal and interest.
Saving for Annual Expenses
As a home owner you will quickly learn that pipes spring leaks, door locks get jammed and home insurance has to be paid every year. You should realistically estimate the annual cost of house maintenance and save for it monthly. Ensure that you have easy access to these savings through the ATM as you may need to access these funds for emergencies
We highly recommend that you try to have savings set aside to cover at least 3 months’ mortgage payments, bills and other living expenses in the event of job loss or any other unexpected developments. Set up an automatic savings plan to build your 3-Month Cushion. These funds should be kept separate from your savings for annual/maintenance expenses.Easy methods to track mortgage payments
Once you have acquired your mortgage you need to ensure that you have convenient and reliable ways to track and make your payments. You should utilize Internet banking, ATM and Telephone Banking (where available) to ensure that you have enough funds to cover your monthly installments and that your mortgage and other commitments are being paid on time.Convenient methods to pay suppliers and workmen
Tiles, cement, furniture, plumbing, landscaping … you’re going to need them all and you will need to have easily accessible funds to pay suppliers and workmen. You may want to consider having a credit card for shopping at hardware and furniture stores. A chequing account with an overdraft facility will come in handy to pay for transportation and workmen.Protecting your home, estate and loved ones
We can offer the protection that will give you peace of mind. You should consider insurance solutions in the event of: