Many first-time home buyers find it difficult, if not impossible, to enter the property market due to the sizeable deposit required to buy a home. Therefore, they are forced into one of two options – either pool borrowed resources to come up with a deposit to qualify for finance; or continue renting and paying towards someone else’s bond, resulting in them spending a lot of money but having nothing to show for it at the end.
Head of Absa Home Loans Carel Grönum says that it is now easier for first time home buyers to purchase their home though the Absa Family Springboard home loan. Buyers, who meet the bank’s credit criteria and qualify for a home loan, are now able to buy a property with the help of a family member or friend. With permission from the helper, 10 percent of the property purchase price will be ceded to Absa as collateral.
Do your homework: Be honest with yourself in terms of what you can afford.
Shop for the best deal: Once you know the amount you qualify for shop around to get the best deal.
Know how much interest you are paying.
Learn to love cash: Try clearing as much of your debt as possible, such as clothing accounts, to ensure there’s extra cash at the end of the month.
Be penny-wise: If you have a little extra money at the end of the month, put this towards the home loan repayment, thereby reducing the repayment period.
For more information on the Absa Family Springboard home loan please visit www.absa.co.za.
Sponsored by Absa
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