bond . All of this is freely available and easily accessible to potential homebuyers .”
5 . 100 % VS 105 % BOND :
After opting for a 100 % bond , you may also qualify for a 105 % bond . “ 105 % bonds normally cover the costs of transfer and bond registration ( usually 8-10 % of the purchase price ) and are generally targeted at first-time buyers and properties below R1.8 million .”
6 : FIXED VS VARIABLE INTEREST RATES .
Some banks may offer you the option of a bond with a fixed interest rate when you apply – that is , a set rate that will not fluctuate when interest rates go up or down . This helps to protect buyers from interest rate hikes , but it also means that you will not benefit from monthly repayment savings should it go down over the 20 year repayment period .
Taking all of this into consideration , Dyer concludes saying : “ There is a lot to weigh up and consider as a potential homeowner . Work closely with a reputable bond originator to better understand all the options on offer and what ’ s best suited to you .”
Rhys Dyer Chief Executive Officer Ooba Home loans
By Rhys Dyer
SA Real Estate Investor Magazine JUNE 2022 33