We’ve been looking for our dream property for more than a year now. We are currently staying in a rental home and even though we are absolutely content there, we do understand that it makes far more sense to be paying off our own personal little investment monthly, instead of putting money in someone else’s wallet. We are however not in any kind of hurry to make the massive move; consequently we’ve had the opportunity of taking our time to try to find the perfect home at the ideal price and to observe the interest rate in order to determine the ideal time to buy.

We are now basically ready to make the big purchase, but have a number of questions regarding an ABSA home loan that we would like to ask their qualified staff. just to make certain that we are without a doubt ready for this important move.

Should we select a fixed interest rate or not? If we select to acquire our ABSA home loan at a predetermined interest rate, it means that we will at all times know precisely just what our month-to-month home loan payment will be. If there’s a cut in the interest rate we might lose out somewhat, but if there is a sharp hike in the interest rate we will be safe since our montly installment will remain unchanged. A fixed interest rate is normally a percentage or two higher than the actual interest rate at the time of your house purchase. Hence fixing your property loan if the current interest rate is reasonably high is maybe not such a good idea.

Will we be offered a repayment holiday and how will this work? A number of banking institutions and other bond institutions allows a couple of months where you won’t have to pay your month-to-month house mortgage payment. They will allow for this without asking any questions and this is particularly beneficial in a period of time where you merely need a bit of breathing space or when you have unforeseen costs and merely can’t pay all your bills and accounts. Always keep in mind that after the repayment holiday you must settle the payments that you missed, so be sure that you understand exactly how this will expected from you. Will your monthly payment increase a lttle bit to cover these skipped payments, or will you simply be able to lengthen your loan repayment term?

What will happen if I want to settle my ABSA home loan before the allocated time period is finished? Whenever we take a loan, we repay it with interest. This interest is in effect for the privilege of being allowed to borrow the funds and is calculated on the amount that you still owe as well as the time that you will still be paying back this money. Thus in the event that you would like to pay back the funds sooner, the lender might lose a lot of possible interest in the process and will typically charge a penalty fee to look after their interests in such a case.

As soon as we have assurance on all the above queries, we will be signing our very first offer to purchase. how fantastic!

For more information about an ABSA home loan visit the website http://www.isureins.co.za