City Press, in partnership with Capitec, will be taking a first-time home buyer through the process from beginning to end.Looking to buy a home?City Press, in partnership with Capitec, will be taking a first-time home buyer through the process from beginning to end.Meet Bontle – our first-time home buyer
But then Covid-19 hit. while the pandemic had a devastating impact on many people’s income, it also saw a dramatic fall in interest rates. The prime lending rate fell by nearly a third, from 10% to 7%. Suddenly Bontle’s affordability improved, and she was able to afford a higher mortgage. At the same time there was an increase in sellers and many people looked to downsize to cut costs.Suddenly Bontle’s affordability improved, and she was able to afford a higher mortgage.
As the seller had been struggling financially, the property needed some attention – the pool was green and in need of repair. “I insisted on the pool being repaired as part of the offer to purchase,” says Bontle, who also requested a statement to fully understand the monthly rates, water and electricity costs.
The decision to switch from renting to buying has been made more attractive by the current low interest rates. For many, a mortgage repayment may now be in line with what they are paying in rent. This creates the opportunity to move into the property market. For example, on a mortgage rate of 8% your repayment for a 20-year mortgage would be around R8400. The mistake one could make is thinking that if you are able to afford rental of R8400, then you can afford to buy a home.
Though the pool was a one of the most attractive features of the home, Bontle had to allow extra money in her budget to keep the pool pump going. The best way to understand your mortgage costs is to apply for a pre-approved mortgage. Ask your bank what mortgage they would approve, at what rate and the monthly repayment. Bontle had a pre-approved mortgage which made her offer more enticing. A seller is more likely to agree to an offer if they know the bond is likely to be approved.
According to Wiehahn Kock, head of Business Solutions at Capitec, there are several factors that affect the interest rate when approving a home loan application as interest rates reflect the risk premium the banks place on the mortgage.A primary property – in other words your home – will usually have a lower interest rate than an investment property. Banks know that people are most likely to prioritise their home repayments and therefore it carries a lower risk.
CapitecBankSA Muhammad Qasim shared his dreams about warning of future events with Government officials, and Muslim scholars, but not many paid attention. Then after a terrorist attack in 2014, Prophet Muhammad SAW came in his dream twice asking him to share his dreams with the world.
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