Information for Buyers

Checklist to determine your type of home
Useful hints
Who is involved in the home loan process?
What is a Home Loan Originator?

Checklist to determine what kind of home you want

Decide what kind of house suits your needs (townhouse, cluster, house) and how many rooms you need.
Consider the location of your home - is it near shopping centres, schools and your place of work? Also consider service levels and rates in that municipality.
Work out your monthly budget to see how much you can afford. Take into account the possibility of rising interest rates. Remember to include extra expenses like insurance, maintenance, water and electricity.
Speak to one of our home loan consultants to give you an indication of how much you will qualify for. They will also be able to assist with explaining the additional costs like property assessment fees, legal fees and transfer duty.
Start looking for a home. Have a clear idea of what you want before you speak to an estate agent.

When you find a home that you like, ask the owner as many questions as you want. Consider things like the age and condition of the home and the security features.

Once you’ve found your dream home, you’ll need to sign an offer to purchase. Contact one of our home loan consultants, and we will do the rest for you.

Once we have completed your application form, your financial position and credit record will be assessed to ensure that you can afford the home loan you have applied for. When everything is approved, you will receive a quotation giving the conditions and benefits of the agreement. You will have to accept this within five days. The attorneys will then register you home loan and transfer the property into your name. Lastly, the owner of the property will be paid and you will become a homeowner.

Remember to arrange the timing of your move to your new home with the seller. If you want to move in before the bond has been registered in your name, you will have to pay occupational rent.

Make sure you don’t miss a single repayment on your home loans as, if you do, the interest owed will go up and you might en up paying more. If you are able to make extra payments into you home loan you can reduce the period of you home loan and the amount of interest paid.

Useful Hints

What is a mortgage?

A mortgageable property allows the buyer to apply for a home loan and use the property as security for obtaining the home loan.

Mortgageable properties include:

Houses and Flats
Townhouses, cluster homes and sectional title units
Semi-detached houses
Holiday or second homes
Dwellings still to be build
Small-holdings (up to 8.5ha)
Vacant stands

Thinking about one of the following?

Building

The building project must be registered with NHBRC (National Home Builders Registration Council), which provides cover for structural defects for a period of five years.
Building operations must commence within six months of the registration of the mortgage and must be completed within a further six months thereafter.
The dwelling should be constructed of brick and mortar, but other forms of construction will be considered.

Sectional Title

The body corporate is required to be up to date with payments of rates and taxes with the local municipality.
The body corporate should be functional.
Financials of the body corporate may be required.
A copy of the insurance certificate also needed.
The home loan applicants’ property is covered by a combined insurance policy for the townhouse or cluster complex. This forms part of you monthly levy.

Small holdings

Certain special conditions apply to smallholdings, up to a maximum of 8.5 hectares:

A loan for a maximum for 70% of the assessed property value may be approved.
The small holding should be situated in an urban area.
Water and electricity supply must be available.
The smallholding must be accessible via a road.
The smallholding should include buildings improvements (dwelling).

Vacant Stands

Certain special conditions apply to vacant stands.

A loan for a maximum of 70% of the assessed property value my be applied for.
The vacant stand must be situated in a residential area.
All necessary services, water and electricity, must be available to the vacant stand.

Who is involved in the home loan process?

Seller
Estate Agent
Buyer
Transferring Attorney (appointed by the seller)
Bond Attorney (appointed by the bank)
Cancelling Attorney (appointed by the bank)

Note: One attorney can handle all the above procedures, simplifying the whole process.

The process

The offer to purchase is made. The buyer and seller come to an agreement and both sign the offer to purchase. The buyer then applies for a bond or home loan through us.

Home Loan Approval

Your home loan is approved, and the bank instructs the bond attorney to register the home loan.

The transfer of Property

The seller then advises the transferring attorney to transfer the property, and the title deed and cancellation figures are requested from the bank that currently holds the bond over the property. Then a statement of rates and taxes is requested form the local authority.

Bond Attorney

The bond attorney contacts the transferring attorney, and advises the transferring attorney of the amount available for guarantees. The transferring attorney then requests the title deed and cancellation figures.

Cancellation Attorney

The cancellation attorney is requested to cancel the seller’s home loan on receipt of a guarantee for the outstanding amount owing.

Transferring Attorney

The transferring attorney now receives the title deed and cancellation figures and sends a copy to the bond attorney. The buyer and seller are then contacted to sign the transfer documents. Once this has been completed, the buyer pays the transfer costs and the transferring attorney then pays the transfer duties, rates and taxes.

Bond Attorney

The bond attorney now prepares the home loan documentation with the buyer. The buyer then signs and pays all the costs involved. Next the bond attorney prepares and issues the necessary quarantees, forwards them to the transferring attorney and then gets the documents ready for lodging at the Deeds Office.

Transferring Attorney

Once the transferring attorney receives all the guarantees, they are the forwarded to the cancelling attorneys.

Cancellation Attorney

Once they get consent from the lending bank, the seller’s home loan is cancelled.

The Deeds Office

Once all the documents have been signed and all the costs have been paid, all the documents are lodged at the Deeds Office by all the attorneys concerned. It takes about two to three weeks for the Deeds Office to check the documentation and then all the attorneys are contacted once it is ready for final registration which takes place on the same day.

Bank Pays the Loan

On the day of registration the bank pays the loan. Generally it takes at least three months for the registration and transfer of a Bond.

What is a Home Loan Originator?

A Home Loan Originator such as Mortgage Assist (Pty) Ltd offers a 100% free service to you the home loan applicant, assisting you with your home loan application through our contacts at all the major banks in South Africa.

What does it cost you to use an Originator?

It costs nothing. You incur no costs whatsoever as the Home Loan Originator receives a fee from the banks. We do all the work and will provide you with an objective overview of all options available. We have strong relationships with all the major banks giving you the widest rage of choice. We have the power to negotiate a better rate for you than you would normally be able to obtain as an individual.

Using us as your Originator is the most hassle free way of applying for a home loan as it is the originator's business to help you get the lowest possible home loan rate.