4. 1st time buyers

It is critical to enter the property market with a good understanding of how a property purchase works, how much you can afford to borrow, what the hidden costs are and how best to structure your finances to maximize savings.

Important factors:

• know what you can afford
• be aware of hidden costs such as transfer and registration fees
• thoroughly investigate the loan products and options available to you
• consolidate your finances
• arrange for all or part of your salary to be paid into your loan, as well as any additional income such as bonuses to save on interest repayments and pay off your loan faster
• stick to a workable monthly budget

First time buyer's loan:

Most lenders have products specifically tailored to enable the first time buyer to enter the property market. The distinguishing feature is that you can borrow more than 100% of the value of the property (up to 110%) to assist with deposit, registration and transfer fees:

Qualifications:

• 1 st time home buyers only
• clean credit record
• stable employment history
• minimum single or joint income of R 6 000 per month
• home loan repayments cannot exceed 30% of gross income

Read about building your own home