13 Oct 2018
Finding your ideal home finance solution is an essential step in ensuring you take care of your current and future wealth. For many South Africans, taking the step of applying for a home loan seems near impossible. Luckily, there are several options at your disposal. One particularly handy offering is a 100% home loan.
There are many advantages to getting a 100% home loan, but it’s important to know the finer details before committing to a 20-year term. One of the main reasons a 100% home loan is attractive to buyers, is the fact that it allows you to buy a home without putting down a deposit.
In practice, this means the value of the deposit is added to the remainder of the home loan. This, in turn, is paid ‘as usual’ over the 20-year term. By taking out a no-deposit down home loan, you free up capital at the start of your home buying journey. This can come in handy when it comes to additional costs like transfer fees, renovations, or attorney’s fees.
But not everyone can apply for a 100% home loan. It’s important to know what is required of you to apply for – and hopefully be approved for – a full home loan. Having the necessary documents ready when applying for your loan will ensure a smoother process. You can also review the full list of required documents.
The first step in ensuring you get approved for your no deposit home loan, is getting an affordability calculation done so you know what you can afford. This gives you a good idea of what you can expect when it comes to applying and helps to set realistic expectations. Once you’ve found the home you want within that price range and submitted an application form with all the necessary documents, your application will be assessed.