SA Home Loans - You have a few different options when you apply for a home loan. You can either go to one of the commercial banks, small or big, or you can choose a non-bank financial provider, for example SA Home loans. There are both advantages and disadvantages to this. Let's use SA Home loans as an example.
Since they are not a bank, they can be more flexible in what they offer. They are not necessarily limited to the “stereo-type” home loan.
SA Home loans only do, you guessed it, home loans. This allows them to specialize in mortgages and they can focus on this product.
They are not mortgage originators, but financial providers. This means they are not sourcing finance from another institution, but actually provide the funds applied for.
However, you need to be aware that there are some disadvantages as well.
When you first apply for a bond at SA Home Loans they will normally register for a higher amount. This amount can later be applied for and the funds accessed. However, you can't apply for a second, or further, bond at a later stage. So you might have equity in your property that you can't access at a later stage.
There have also been instances where a SA Home Loans client enjoys an excellent rate in the beginning of their term, but after six months the rate is increased to prime or more. This can obviously be prevented by reading all the terms and conditions of the loan agreement.
In conclusion, whenever you apply for a home loan, whether with an ordinary bank or a non-bank such as SA Home Loans, you need to make sure you understand all the terms and conditions of the loan agreement. This will prevent any nasty surprises at a later stage.
Well, I know that is a lot for you to take in so I am happy to spend some time with you and answer any questions you have about choosing home loans. You are very welcome to contact my office at 086 110 6204 or visit: http://www.gpfmortgage.co.za
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