Getting a Bond Grant

” In order to get a Bond Grant you will be required to approach a financial institution and apply for a home loan or your agent will put you in touch with a Bond Originator.  

The assessments:

• Monthly repayments may not exceed a maximum of 30% of the gross income single or joint.
• How you are handling your financial affairs and bank accounts;
• Your age in relation to the loan facility;
• Security or collateral provided;
• Your credit record;
• Your statement of assets and liabilities;
• Apply at more than 1 bank at the same time to get the best deal!

Reasons for Decline of Bond Application

Financial Institutions look at the individual’s financial recourses, ability to pay the debt, and use a behavioral scoring model. This takes into account current income, employment history, consumer payment history with all major retailers and then the performance with the bank itself, if he/she is an existing client of the bank. They carry out credit checks and look to see whether a judgment has been made against the potential borrower as result of a default in payment and any debt in the past.

The bank assesses the potential borrower’s payment history across recorded transactions, including purchase of motor vehicles, clothing, furniture and professional services. Any skipped payments or bad debts incurred will count against the applicant. They assess the property to evaluate the strength of the investment and its ability to realize the value if the property should be sold for any reason. If the individual has or will be paying a deposit.

Bond Grant

If an applicant obtains a satisfactory score, good credit record, the bank makes a physical assessment of the property to be purchased, taking into account the condition, security and location, as well as the demand for homes in that area. If the property meets all these criteria, the chances are that the bank will grant the loan. A loan is granted based on all the above criteria and may not meet the individual’s needs, the bank will advise the percentage and amount grant. The interest rate to be negotiated.

If a Home Loan Application is denied, reasons will be provided for the decline. ”

This article has been reprinted with the kind permission of Masilo Freimond Inc.
Tel : 011 958 0488
Fax : 086 610 0276
E-mail : info@masiloincjhb.co.za