Discount on First Time Home Buyer Young Professionals mortgage rates a further boost.
Category News
Home loans have never before in South Africa been so inexpensive and never before have the lending institutions been so accommodating and accessible, says Rowan Alexander, Director of the Cape Town estate agency Alexander Swart Property-and the recent announcement from ABSA bank that they are offering a special deal to young first time home buyer professionals has been the cherry on the top of already excellent market conditions in favour of the buyer, he says.
"Many of the banks have over the years targeted this young professionals' market (possibly because they see such people as more likely than most to succeed) but right now those who qualify are in a better than ever position and their response is likely to add further momentum to the current swing from renting to home buying," says Alexander.
The ABSA offer, he says, applies to those with NQF8-or higher-qualifications who are below the age of 35 and are genuinely buying for the first time-and the loan they apply for must be no higher than R1,5 million. Provided that their credit record is satisfactory, such applicants will be able to get from ABSA a 0,25% discount on a loan with a variable interest i.e. not a fixed rate-and, Alexander points out, the majority of the mortgage loans in this market are already at the ultra-low rates of 6.5 to 7%. One condition of the offer is that the borrower must transfer his primary bank account to ABSA if he is not already a client of theirs'.
"With mortgage rates so low it makes no sense at all to postpone buying a home, because monthly you will be paying approximately the same as if you were renting. Young professionals who do not take up this ABSA offer are likely to regret it later. And as marketers of both new and previously sold homes, we know that this will benefit us and is likely to help us increase sales turnover by 3-5% this year", says Alexander.
For further information, please contact Rowan Alexander by email : rowan@asproperty.co.za or by cellphone on 082 581 3116
Author: Rowan Alexander
