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What Mortgage Loan is Best for Me? Types Offered, Companies that Provide Them and More



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            The world of business gives us multiple possibilities and options. Some are more convenient, some others are more competitive. In a changing marketplace, we must evaluate, analyze the different offers that companiesbring to us. When looking formortgage loans, for instance, it can be quite a challenge to find a company that you can trust and benefit from. In order for you to choose the best option possible, I will provide you with assistance so that you can be aware of all the different financial organizations that offer mortgage loans.

Which companies will be described?

            The companies that I will display are:

  • Standard Bank

  • Nedbank

  • Capitec Bank

  • SA home loans

How many types of mortgage are there?

            There are different types or mortgage loans available. There are some companies that label these loans under home loans. Depending on the company that you choose, you will access different types of mortgage loans:

-some of them might use your home or vehicle as collateral

-some might not require collateral

-they enable you to upgrade, purchase or sell your property

            At Nedbank, for instance, you will find three different possibilities that stem from mortgage and home loans. By already having a home loan, clients can turn to future loans in order to access extra funds.

  • One of the possibilities is re-advance: this means that you will access the money paid off on the loan that you have.

  • Another possibility is to go for a second loan so that you can have more possibilities of financing.

  • Nedbank also offers you the possibility to accelate payments so that you can pay off the home loan you’ve asked for sooner.

What kind of credit score do you need to get a mortgage?

            Requirement criteria change based on each organization. Let us deal with Nedbank. At this company, your credit record must be clear. However, this is not the only requirement criteria established and demanded by the bank for clients to meet. You should also count with a household income of R2,500 or even more. Besides, the value of your property should start off at about R100,000.

            Capitec, on the other hand, does not establish any requirements regarding your credit score. It does offer, though, some important tips when applying for mortgage and home loans. In the case of Standard Bank, members of this bank will take into account your credit score or credit history. They have to make sure that you have no debts stemming from previous loans of credit cards debts.

What is a good rate on a mortgage?

Rates always vary from company to company. However, by making use of calculators you can get an approximate idea of what a good rate would be, especially if it implies saving up money.

Why do mortgage rates change so often?

            There is always a lot of fluctuation going on in the world. Mortgage rates go up and down all the time, even within a day. This happens due to multiple causes, but there are three main ones that stand up:

  • The events that take place in the world

  • A changing economy

  • Inflation and the activity of the Federal Reserve

As regards the economy, generally what happens is that, whenever we, as a society, are going through a solid and optimal economic period, mortgage rates tend to go up, due to the fact that capital is still in demand. On the other hand, whenever we are going through difficult times or times of recession, rates tend to go down, which makes cash more affordable. There are also certain price indexes that affect this, such as the consumer index as well as the producer index. Rates are also set by lenders who analyze the market.

As regards the events all over the world, whenever a regime changes, economies change since they become volatile. There are international and domestic forces surrounding trade that migh have an impact on it. The confidence of investors is also affected by this matter.

Finally, as regards inflation, the flows of money have a lot to do with the change in mortgage rates.

How are home equity line of credit payments calculated?

            In general, most companies offer loans calculators so that clients can reach an estimate of certain values, such as home equity line of credit payments.

            For instance, both SA home loans and Standard Bank enable you to use calculators to determine certain rates, values and payment amounts. SA home loans enable you to calculate:

  • Repayment

  • Refinance

  • Affordability

  • Switch

Standard Bank allows you to calculate the amount that you can borrow, the ways in which you can reduce your bond and the payment per month. 

Can you negotiate a better mortgage rate?

            This is up to the bank that you deal with. There are certain companies in which you can arrange certain values and negotiate better rates and other companies that do not allow possibilities for flexibility regarding mortgage rates. Some clients might have additional benefits since they have worked longer with the company or they prove to have outstanding credit scores.

How to contact companies?

Requirement

Requirements change according to the company in which you are applying for the mortgage loan.

Cellphone

0860 555 111

Email contact

-

The number provided belongs to NedBank. None of the above mentioned companies provide clients with an email address.

  • If you are interested in reaching Capitec, call at 0860 10 20 43

  • If you are interested in reaching SA home loans, call at 0860 2 4 6 8 10

  • If you are interested in reaching Standard Bank, call at +27 11 636 9111/2

In conclusion, mortgage rates can be quite beneficial. Each bank offers you different home and mortgage loans that might help you in different ways. Perhaps you should take into account the requirement criteria established by each of them so that you can check whether you are up to their expectations.



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Ratings

Rating: 4
Comment: The idea of being able to negotiate the mortgages is exciting
Rating: 4
Comment: With a score far from perfect, I was able to get a mortgage loan at Ned Bank.
Rating: 5
Comment: Ned Bank is one the greatest banks in South Africa.

Questions and Answers

Does the number provided belong to Standard Bank?
No, it belongs to Ned Bank
Does the company set the requirements or are they typical of the loan itself?
The companies tend to establish their own requirement criteria.
Do I need collateral for mortgage loans?
Not necessarily. It depends on the loan that you choose.