Banks are keen to finance your home loan

Banks are keen to finance your home loan

It is believed by property experts, now that elections have passed, the results within the property sector will drive better confidence.

The main two key drivers of the economy and property sector are stability and confidence. First time homeowners can be in favour since there is renewed interest in the property market. The new generation South Africans will now have an opportunity to discover their homeownership dreams.

Banks are becoming more eager to compete and lend money, by offering its clients easier access and more affordable loans. Banks are reducing deposit specifications, and in majority of time, approving more bonds without requiring a deposit. For many first time buyers, a deposit is a great hurdle to enter into the property market.

Obtaining a 100% home loan will help buyers by allowing them to find their dream homes faster. The best way to find good interest rates is by doing a bit of research. Banks will also reduce the interest rate in order to secure business.

A lower interest rate, eg 0.25% could mean a saving of up to R 40 000 for a 20 year period on a one million rand home loan. The price of home increases still remains below the inflation rate causing housing prices to fall.

 In fact, for anyone receiving an inflation-linked salary increase for the last three years, a home is more affordable right now.