What the hell is a home loan?

What is a home loan?

This is a question many first time home buyers will be asking themselves. The history of home loans goes back to the boom-time years of the early 1800’s which originated in the USA. Most individuals cannot pay cash for land or a home, and that is where lenders offered loans for the balance of the amount owed on a property after a deposit was paid for a property. Most of these loans bore interest and were only between five and ten years; furthermore, these loans were due to be paid up in full after the term of the loan matured. After each loan term matured, the loan was usually renewed for a further term so that the home buyer could save up sufficient money to pay off the loan.

During the 1930’s America’s Great Depression saw the foreclosure of many homes and this is where the more modern version of home loans came into effect. The term period of home loans is now a lot longer where loans can be paid off over an extended period of time.

Why you need a good bond originator:

  • The fact of the matter is that most South Africans would not be able to own their own home without being able to make use of home loans.
  • We source the best possible home loans for our clients from a wide range of service providers to enable buyers to purchase their own property.
  • Should you require a home loan to enable you to purchase a home as a rental property we will assist in sourcing the best mortgages for this purpose?
  • Second bonds can be secured for renovations of a home or to build a property from scratch on a piece of land – no matter your home loan needs, we will do all the legwork to source the one best suited to your individual needs and requirements.

What are the different kinds of loans are available?

  • There are fixed-rate home loans where the interest rate is fixed and does not fluctuate.
  • The adjustable-rate loan, on the other hand, begins with a low interest rate for the first couple of years and is then adjusted once this initial period of time is over.

Because home loans are perhaps one of the single biggest purchases you will ever make, you need to determine and examine which one is best suited to your budget, what you can afford and the one that is unique to your individual needs. At Wizard Midrand we will take all these factors into account when assisting with your home loan needs. Call us today to find out how we can assist in making the purchase of your dream home possible.