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Review on the Advantages of Choosing SA Home Loans


SA Home Loans started granting bonds to South Africans since 1999 and since then has grown it's client base rapidly due to their innovative way of looking at home loans.

Some of the advantages of using SA Home Loans to get a bond approval are:

1. SA Home Loans Criteria

They differ from normal commercial banks in that they will still consider you for a loan if you've had credit problems before, however, they need to be paid up and you must have the proof.

They have taken the stance that they will simply price the loan according to the client's criteria, but won't just give a NO if there is merit in the application.

Pricing the home loan would involve approving it at a higher interest rate or granting a lower amount or both, because of the risk involved.

Therefore, the applicant may only get a 80% bond.

2. Flexible Packages

They also has flexible repayment packages including the variable rate, fixed rate, capped rate, interest only and the newly introduced "Edge"

2.1 Variable Rate

Pretty self-explanatory, but simplified it means that your rate will go up and down with the regular interest rate fluctuations.

2.2 Fixed Rate

Also, as the name says, you fix your rate at a certain percentage and your installment does not change for the duration of that fixed rate term - so you'll know exactly what to pay at the end of the month and you are not affected by interest rate fluctuations. You benefit if interest rates go above your rate, but you lose out if interest rates drop below your fixed rate percentage.

2.3. Capped Rate

This is a very beneficial package to have. Your interest rate will change with regular interest rate fluctuations, but never higher than a certain, pre-determined percentage, but you'll also benefit if the interest rate decreases.

2.4 Interest only

This is a nice product if you want to pay as little as possible per month, but at the end of the term you still need to pay off the capital. Therefore, this is quite beneficial if you know you are not going to stay in the property for long or if you are a property speculator and you'll be selling the property soon. Just make sure of any pre-payment penalties to be aware of beforehand.

2.5 "Edge"

"Edge" is the new product which is over the maximum term of 23 years. This allows you to only pay the interest portion of your monthly repayment for the first three years, should you wish to do so. You are not obligated to only pay the interest portion but it helps if you have a month where you have other obligations.

SA Home Loans has really been innovative with the packages they provide with very few commercial banks offering similar options. Therefore they are a great alternative to try.

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