You already have a bond so what do you need a second one for? Simple, you have ideas of expanding or renovating the property and you once again need assistance from the bank. Banks are always willing to help, just know that they will likely charge a high down payment once again.
Did you know on average, a family will move three times? That means that you are changing residences more often than you might think. And even if you don’t fit the norm, sometimes you need to expand.
The bank holds stipulations for individuals wishing to purchase property. For example, the individual must put down a cash deposit against the purchase of property. Generally the buyer must meet a minimum of 30% of what the property is worth.
The current mortgage crisis has resulted from banks, especially in the United States, becoming too lenient in who they offer mortgages too. In fact, sometimes banks allowed people to take out mortgages with little down. They are now paying the price, and as a result, must only offer new mortgages with a high down payment.
The bank must remove itself from a large risk, so the direct deposit is necessary. The deposit allows banks somewhat of a chance to recover damages in case the borrower drops out of the picture.
After you provide the bank with all the details, they will sit down and study your case. The bank needs to decide if you really need the money and if you will be able to pay it off. It’s difficult paying off one bond much less two.
The bank also tends to frown upon second bonds that are intended to help release some capital on the property to a struggling business or to support your own, especially if you are looking to start the business from scratch.
If you meet the bond’s criteria, have a stable job and ample income, the bond is probably only a signature or two away. Just make sure allow the bank plenty of time to examine the bond request and you think it through intensely.
Graham McKenzie is the content syndication manager at BondCredit.co.za South Africans leading Bond Originator
0 Responses
Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.