Home Finance Home Loans: Tips to Improve Your Credit for a Home Loan

Home Loans: Tips to Improve Your Credit for a Home Loan

home loans

Getting Home Loans is one of the best things that you could do for yourself and your family. It is important to prepare in advance for your loan application to ensure that you receive the best mortgage interest rate.

In 2020 and 2021 the number of applications for 100 percent home loans greatly increased, and more are being accepted.

Some first-time buyers are seizing the opportunity, with interest rates at their lowest level in nearly 47 years and house prices under pressure.

FNB and Absa, two of the country’s largest banks, stated to Business Insider SA that they are providing 100 percent home loans.

Who would be eligible for a 100 percent home loan?

Most significantly, you must have a strong credit background to apply for a 100 percent bond. You must demonstrate that you have made timely payments on your credit agreements.

Home Loan Providers

FNB Home Loans

Home loans from FNB is available to individuals who earn a minimum income of R25 000 and these can assist you in buying your first property, buying land or even property for your property portfolio.

FNB Home Loans can be as much as 100% of the purchased property’s price, and come with affordable and flexible repayment terms.

ABSA Home Loans

ABSA Home Loans will help home buyers buy their dream home by lending up to 100% of the purchase price and providing repayment terms of up to 30 years.

You can choose between a fixed or variable interest rate with ABSA Loans.

Nedbank Home Loans

Nedbank offers flexible home loans that will allow you to start your home ownership dreams, and has home loan packages that include the Ordinary Loan, Building Loan and Further Lending.

Nedbank will assist you with all of your home loan needs, whether you’re buying, building, or adjusting your loan.

Nedbank Home Loans offers credit up to 100% of the purchase price, as well as numerous cash backs and bond registration fee discounts.

Nedbank’s standard home loans have a 20-year repayment period, but they can be extended up to 25 years.

Standard Bank Home Loans

Standard Bank has a home loan solution for everyone, whether you’re a first-time buyer, a builder, or a homeowner. Their home loans will fund up to 100% of the purchase price and have flexible repayment periods that average 20 years.

According to Standard Bank Group, new home loans granted in 2020 reached an all time record level, owing primarily to their low interest rates.

The bank in 2020 alone disbursed R56.5 billion in mortgage loans in South Africa last year, up 13% from 2019.

SA Home Loans

SA Home Loans, founded in 1999, is a mortgage lender that specializes in home loans.

The company through its partnership with Capitec has supported over 100,000 consumers in securing their dream homes.

South African homeowners have a new option of home finance with SA Home Loans.

They are mortgage experts who are primarily focused on delivering revolutionary mortgage loans that adapts to your changing needs and lifestyle over the life of your loan.

Home financing, credit approval assistance, registration assistance, and continuing loan servicing are all available through SA Home Loans.

Ooba Home Loans

Ooba is a home loan broker who deals with all of the major banks to help you get a mortgage. Since home loans are their only business, they are known as the industry’s best at getting bonds approved.

When you use Ooba instead of going to your bank, you have a better chance of getting your home loan accepted.

BetterBond Home Loans

Everyone wants to own a house, and BetterBond will assist you in making that dream a reality.

BetterBond is a home loan broker that simplifies the process of obtaining a home loan.

BetterBond partners with all of the major banks to find the right home loan for you.

Understanding What Is Credit

In order to get a bank loan especially a home loan, you usually need credit, and if you have to have a history of borrowing and repaying loans it will be easier for you to get credit.

Check Your Credit Score

The mortgage lender before processing your home loan application can look for three key factors to determine whether you qualify or not.

01. The first requirement is that you—or your partner, whether you are applying jointly—have a consistent source of income.

02. Another important factor to also remember is how much of a down payment you can afford.

03. Lastly they will also look at your credit profile where your financial history informs lenders of the types of loans you’ve taken out and whether you’ve settled your debts on time.

Examining your credit report will allow you to see what lenders see, allowing you to figure out if anything is affecting your credit.