In South Africa, people who want to purchase a property, either for business use but more likely as their home generally do so by taking out a bond, or mortgage is it also known. It is rare that a private individual will have sufficient cash assets at their disposal to buy a property. This means that they will require calling upon the services of a bank or a building society to lend them the balance to enable them to buy their property.
Although there are many sun categories, bonds basically fall into two different sun categories: those that are based on fixed interest rates and whose interest rates fluctuate during the loan’s duration dependant on terms agreed by the lending bank and the borrower when the loan was issued. Fixed interest rates are more popular, simply because the borrower knows exactly where they stand at all times in relation to their loan.
There are those that say that buying a property is like being born. Painful and confusing to begin with, but very worthwhile in the long term.
If you are looking at applying for a Readvance or second bond as it is know, then this article should help prepare you.
