Refinancing? You’ve heard about a lot of people doing it but don’t know what the process entails? Will you be able to benefit from refinancing your home loan at the end? Home refinancing is one of the most effective ways to release cash which is accumulating as your bond gets paid. The value of your property increases over time as well, so you will have more equity available.
If you’ve owned your property for a number of years now, it’s likely that the value of your property has increased during this time, and is worth more now than it was when you purchased it.
When you refinance your home, you are in fact securing a new mortgage over your property. Based on it’s current value, and not on the amount it was valued at when you first bought the property. To see if you can qualify, apply here now.
Applying for refinance is quicker than applying for a second bond, as it is a much easier process. We only apply at the bank where your bond is at, and they already have most of your information.
Refinancing your home loan can give you access to the equity in the property. You can use it to consolidate your other smaller debt, or anything else. You can even use the money to improve your home or renovate it.
Equity is the difference between the current outstanding bond amount, and the current market value of your property. If you owe R500,000 still on the bond, and your market value is R800,000 now, then there is R300,000 equity available.
Some banks will only give up to 90% loans for refinancing, but it is still worth applying for refinancing. The costs will be much lower at the end of the day.
