| Why do I need to complete a section on my credit history ? |
| Your credit history provides the lender with information on how you have been managing your debt, and hence your ability to finance a purchase. As part of the home loan process, the necessary credit checks will be performed at no cost to you. |
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| What is insolvency ? |
| Insolvency refers to a state of financial affairs whereby the liabilities (debts) of an individual or business exceed their financial worth / assets, thereby leaving the individual or business unable to meet their financial obligations. |
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| What is a further loan ? |
| A further loan is when a second bond is registered over your property in order to obtain additional funds, which are to be used for alterations or improvements to your existing home. Because you will be registering a second bond over the property, certain bond registration fees will be payable. Because you cannot borrow more than the property is worth, the amount of a further loan is based on the increased value of your property since the original loan, i.e Security must also be available in the property to support the further loan. To fund extensions or additions to an existing property the proposed extensions must conform to national building regulations, so you need to ensure that your proposed plans have been approved, and meet the municipal requirements, as these plans will need to be submitted with your application for the further loan. |
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| What should be included in my monthly expenses |
| Include ALL monthly household expenditure PLUS retail account installments, personal loan installments, vehicle finance repayments/installments/sale agreements. Any current monthly rental or bond repayment expenses that will be replaced by this New home loan should be excluded from you Total monthly expenses figure. |
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| What should be included in my Net monthly income ? |
| Your net monthly should reflect ALL income less deductions i.e. gross monthly salary less tax, other salary deductions (medical aid, UIF, etc) PLUS any rental income, subsidies, travel allowances, average commissions etc. |
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| What should be included in my gross monthly income ? |
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Your gross monthly income includes, but is not limited to the following :
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