Surge in home buyers using unsecured credit for down payments | Business

  • 📰 News24
  • ⏱ Reading Time:
  • 26 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 14%
  • Publisher: 80%

Business News News

Business Business Latest News,Business Business Headlines

The steep interest rate hiking cycle by the SA Reserve Bank and elevated inflation have eroded affordability, making it difficult for buyers to save enough for a down payment on a home - and more are turning to unsecured lending as a source.

For instance, even if you buy a home for R1 million, which incurs no transfer fees, you are looking at additional costs of around R14 000 for legal fees and other related costs. Banks will only lend money or approve bonds if buyers can afford the associated costs.

Although BetterBond cannot comment on unsecured lending among first-time buyers, CEO Carl Coetzee says it is a misperception that first-time buyers can only buy a home if they have a deposit. Buying for a purchase price of less than R1 million will save first-time buyers from paying costly transfer duties. Those with a household income of between R3 501 and R22 000 could also qualify for a Finance Linked Individual Subsidy Programme , depending on the make-up of their household and their circumstances.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

MbuyiseniNdlozi That is exactly the point. Erode savings of the Black masses. Nogqawuse2.0

Why buy, why want fixed assets in SA? Value is hardly going to appreciated. Rent someone else's bad decisions.

Inflation is worse than covid

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 4. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Man arrested after hijacking of business with fake court documentsThe arrest of a Pakistani man who was granted urgent interim court orders to take control of multimillion-rand businesses based on allegedly falsified documents has exposed a “concerning” loophole in the Gauteng high court's online case filing system. Fake Court Document again👀👀👀👀👀 Are this things so easy to do in SA. For a moment I thought this was a KZN king🤣🤣🤣🤣
Source: SundayTimesZA - 🏆 47. / 51 Read more »