Applying for a bond

Finding your dream home can be challenging experience, especially when it comes to applying for a home loan. Bond originators such as CKM Home Loans strive to get you the best home loan to secure your dream home and to accommodate your budget. CKM Home Loans takes the hard work out of home loan application, allowing you to sit back and relax while they negotiate the best bond agreement for you.

Apart from providing professional service, the staff are all from a variety of banking backgrounds and will assist you on any home loan or building loan, financial indication calculation and consolidation of debt. The staff are enthusiastic in providing a fast and reliant service to all customers. Always keep in mind that a good credit worthiness will negotiate a better interest rate with the banks, do not miss payments or become blacklisted as this will restrict your financial freedom.

Bond Repayments

Your dream home was found, your bond application accepted and the bond agreement signed; now you have a long-term commitment and a large sum that you owe to the bank. Although the thought may seem daunting, upon signing this agreement you have signed away a large portion of your monthly income. Bond repayments are inevitable, it is a fact of the bond agreement, however you can decrease the length of time you will be paying of your bond.

Tips to decrease your bond sentence:

• Eliminate your short term debt:

Short term debts such as credit cards and store cards are calculated at a higher interest rate than that of the general bond, therefore start by paying off all your high interest shot term debt first. You may be required to increase your bond repayments slightly to enable you to consolidate all your debts at a lower interest rate.

• Increase monthly bond installments:

Once you have identified and eliminated your high interest debts you can start to pay a higher bond repayment monthly which decreases you mortgage term considerably and saves you thousands. Even if you can only manage to pay an extra hundred rand in monthly it will make a world of difference.

• Lump sums and bonuses:

Lump sums and bonuses can decrease your term considerably, a lump sum of R20 000 paid into a bond of R450 000 at 12% over 20 years will decrease the period by about 33 months and the total cost by approximately R144 000.

• Repo rates:

Fewer few South Africans have a fixed rate mortgage agreement, most are subjected to the fluctuating repo rates which will affect the interest of your loan and ultimately your monthly bond repayments. If the rate drops and you are entitled to pay a lower bond repayments, stick to your bond repayment that you are accustomed to paying, to shorten your mortgage agreement term.

CKM Home Loans is the perfect company of bond originators to negotiate your home loan. After the forms have been signed and the agreement settled with the bank, the handling of your mortgage repayments is up to you, but with the tips above you cannot go wrong in decreasing the length of time it will take to pay off your home loan.