South Africa has several financial institutions, banks and other mortgage companies that offer mortgage loans to individuals who want to own homes. This article focuses on the best mortgage companies to approach for home loans.
Ooba is ranked one of the best mortgage companies in South Africa.
Here’s what you need to know when getting a mortgage from Ooba
- The home you can afford depends on your monthly income, expenses, outstanding debt, income tax and credit profile. The ooba Bond Calculator can help you work out what you can afford.
- To get bond pre-approval, your disposable income should exceed 30% of your gross monthly income.
- Make sure you’ve got documents to prove your income and expenses. Keep your pay slips, a record of your pension and medical-fund contributions, receipts, and more.
- Have you made provision for a change in circumstances (e.g. getting married or starting a family), as well as inflation and interest-rate hikes?
- Getting a pre-approval home loan means you won’t risk putting in an offer on a property you can’t afford. Take this step before you go house hunting, or else you risk disappointment.
- When you qualify for a pre-approved home loan, you’ll get a certificate. Take this with you when you put in an Offer to Purchase. This shows the amount you qualify for and is valid for 90 days.
- A pre-approved home loan – and a certificate to prove you have bond pre-approval – shows the estate agent and the seller that you mean business.
How to apply for a home loan: three simple steps
Here’s what you need to do to get the new home loan you require:
- Make sure you’ve considered the total costs of purchasing a property. This includes transfer costs, bond registration costs, a deposit, transfer duties and getting a rates clearance certificate.
- Double check that you understand your Offer to Purchase. Get to grips with the legal terms in the contract and make sure you know what’s included and excluded. An ooba consultant can assist you.
- Give ooba a call or complete the form below and we’ll help you to get all your paperwork in order. Once we have all the documents ready, we’ll submit your home loan application to up to nine banks, including your own.
Now all you have to do is breathe deeply and trust the process. Yes, applying for a home loan, and providing shelter for you and your family is within your reach. And with ooba, you can expect a quick turnaround time.
- ABSA BANK
Absa Bank is a top financial institution in the country. The bank offers cheap mortgage loans for companies planning to develop homes and individuals who wish to own houses.
Many people trust Absa Bank because their interest rates are low. They also process the loans as quick as possible, enabling the applicants to secure their dream homes even as soon as they demand them.
The bank allows you to fix interest rate on loan, which is done through negotiation. Normally, the interest rate ranges between 9.5 % and 14 %.This is the rate you will repay the loan until it’s exhausted.
You also have the option of paying an interest rate according to the market demand and supply. But this type of payment might work against the loanee .We advise mortgage takers to negotiate with the bank a fixed interest rate, such that if the economy is not doing well, you will not suffer the effect of increased rates.
- SA HOME LOANS
SA Home Loans is a mortgage finance provider with no other interests to distract them from their dedicated purpose: to offer the best in every service associated with being a home loan provider. These services cover the full spectrum of home ownership and home financing – from origination and credit approval through to registration and ongoing loan servicing. The company was launched to South African home owners in February 1999 and is today a proven entrepreneurial success story, having originated well over 100 000 residential loans in under a decade.
If you need a mortgage, this is definitely the right company to contact.