In the market for buying a home? Why you should wait until you have 10% deposit
You're sitting pretty if you're currently looking for a property with the financial means to qualify for a bond. It's 'a buyers market' out there thanks to a massive recession and the historically low-interest rates that go with it.
Most banks now offer 100% bonds, which can be a saving grace for those who aren't quite liquid enough. But it's worth considering holding off until you're able to put at least 10% down. It's about more than bringing down the monthly premium.
Sit tight if you're in the market for buying property until you have at least 10% to put down. FNB's Mfundo Mabaso says to Refilwe Moloto.
Putting down a deposit has many advantages for a first-time home buyer and a buyer in general.Mfundo Mabaso, Home Finance Growth Head - FNB
Here's why putting down a 10% deposit is preferable.
It helps the buyer prepare for the commitment of paying for a home loan, says Mabaso.
It will provide the home loan customer with a lower monthly repayment, even if by a small margin, he adds.
Listen to the interview below:
This article first appeared on CapeTalk : In the market for buying a home? Why you should wait until you have 10% deposit