Frequently Asked Questions

The value of an older home compared to a new home depends on various factors, and it’s not a one-size-fits-all answer. Both older and new homes have their own advantages and disadvantages in terms of value, and your personal preferences and priorities play a significant role in determining what is the best choice for you. Here are some factors to consider when assessing the value of older homes versus new homes:

Advantages of Older Homes:

1. Character and Charm: Older homes often have unique architectural features, historical significance, and a sense of character and charm that can be appealing to many buyers.

2. Established Neighborhoods: Older homes are typically located in established neighborhoods with mature landscaping, tree-lined streets, and a strong sense of community.

3. Larger Lots: In some cases, older homes may have larger lots or more spacious yards compared to new homes in more densely developed areas.

4. Potential for Value Appreciation: Well-maintained older homes in desirable neighborhoods can appreciate in value over time, just as new homes can.

Advantages of New Homes:

1. Modern Amenities: New homes are typically built with the latest building technologies, energy-efficient features, and modern amenities, which can result in lower utility costs and a more comfortable living environment.

2. Lower Maintenance: New homes generally require less immediate maintenance and repairs, as all components are new and under warranty.

3. Customization: New homes often provide more opportunities for customization in terms of floor plans, finishes, and features.

4. Energy Efficiency: New homes are usually more energy-efficient, which can result in cost savings over time and can be appealing to environmentally-conscious buyers.

Ultimately, whether an older or new home is a better value depends on your specific needs, preferences, and budget. Consider factors such as location, your budget, the condition of the property, your willingness to take on renovation or maintenance projects, and the importance of modern amenities. It’s also a good idea to work with a real estate agent who can provide guidance on local market conditions and help you evaluate the value of different properties based on your criteria. Both older and new homes can offer value, but it’s essential to weigh the pros and cons of each based on your individual circumstances.

Transfer costs are paid by the buyer, to the conveyancing attorney, who is appointed by the seller to transfer the property to the buyer’s name.

So he or she is appointed by the seller but paid by the buyer.

You can find out how much transfer costs you’ll have to pay on a property purchase using Transfer Cost Calcuator.

The buyer also pays transfer duty, a tax on the transfer of property process, although this only applies to properties worth more than R1 000 000.

It helps to know what you’re likely to pay on a property so you can budget for additional expenses such as transfer costs and bond registration. Get prequalified with your home loan provider to determine what you can afford, and take it from there.

Paying off your home loan quickly can save you money on interest and provide financial security. Here are several strategies to help you pay off your home loan faster:

1. 1) Make Extra Payments: Making extra payments towards your mortgage principal can significantly reduce the interest you pay over the life of the loan. Consider making additional payments whenever you can, even if it’s just a little extra each month.

2. 2) Biweekly Payments: Instead of making monthly payments, consider making half of your monthly mortgage payment every two weeks. This results in 26 half-payments or 13 full payments per year, effectively making an extra payment each year.

3. 3) Round Up Payments: Rounding up your monthly payments to the nearest hundred or even a few hundred dollars can have a compounding effect on your mortgage balance over time.

4. 4) Windfalls and Bonuses: Apply any windfalls, such as tax refunds, work bonuses, or inheritance money, directly to your mortgage principal.

5. 5) Refinance to a Shorter Term: If you can afford higher monthly payments, consider refinancing to a shorter loan term, such as 15 or 20 years. Shorter terms often have lower interest rates, and you’ll pay off the loan more quickly.

6. 6) Budget Wisely: Create a budget and cut unnecessary expenses. Allocate the savings toward your mortgage payments.

7. 7) Create a Side Income: Consider generating additional income through part-time work, freelance opportunities, or a side business, and use that income to pay down your mortgage.

8. 8) Make One Extra Payment Per Year: If making extra payments is challenging, commit to making one extra payment each year. You can do this in a lump sum or by adding an extra month’s payment spread out over the year.

9. 9) Avoid Adjustable-Rate Mortgages: If possible, avoid adjustable-rate mortgages (ARMs) and stick with fixed-rate mortgages. Fixed rates provide more stability, making it easier to budget and plan for extra payments.

10. 10) Check for Prepayment Penalties: Before making extra payments, ensure your mortgage doesn’t have prepayment penalties. Most loans today do not have these penalties, but it’s important to confirm with your lender.

11. 11) Allocate Windfalls and Bonuses: Any unexpected financial gains like tax refunds, work bonuses, or gifts should be applied to your mortgage principal rather than spent.

12. 12 )Create a Dedicated Mortgage Account: Consider setting up a separate bank account specifically for your mortgage payments. This can help you avoid the temptation to spend those funds elsewhere.

Remember to check with your lender regarding any specific rules or requirements related to extra payments. While paying off your home loan quickly is a worthwhile goal, also make sure to maintain a financial safety net and continue saving for other important financial goals.

1. You can get your first home loan approval in principle within a few hours after we submit your home loan to the major banks.
2. All answers from the major banks should be in within 48 hours.
3. If a valuation or further documentation is needed, it could take between seven days and two weeks from the day the home loan application is submitted.
4. The size of your deposit, your credit score, and the value of the property will all play a role in how long it takes for your home loan to be approved
5. Home loan applications for self-employed individuals (one of our specialties) can take a bit longer than the average waiting period..

The home loan application usually takes place after the Offer to Purchase is signed, and is followed by the bond registration process.

The home loan grant comes first as an approval in principle and is then confirmed when you accept the terms of the home loan offered.