Is a 100% Home Loan Impossible?

There are one or two banks or lenders that give prospective home buyers 100% home loans, but there are specific requirements.

This type of home loan is only available for a purchase price of up to R300 000 and a joint or single monthly income of R15,000.

So what about the rest of you that do not fall into that category?
Well, unfortunately the maximum you would get is between 85% - 95% of the purchase price and you would have to give the rest as a deposit, plus cover the legal fees.
This could end up being quite a large amount, therefore we have a suggestion.
If you are currently renting, work out or get a qualified mortgage originator to work out how much you qualify for and what the approximate monthly installment would be.

What you should do then is to take the difference in what you would be spending on a home loan and your current rent and save that on a monthly basis for about 6 months.
Well, if you do that you will see if you would be able to comfortably afford a home loan installment and not get a shock if you suddenly just buy and your installment is much larger.

After 6 months you could then use what you have saved up and put that towards your deposit. Depending on the amount you want to buy for, this may actually be enough to cover your deposit and some of your legal fees.

By Zulika Van Heerden