- info@o-yes.co.za
- +27 10 822 7223
 | You’ll need to provide us with the following documentation. IF YOU ARE AN EMPLOYED INDIVIDUAL:
IF YOU ARE A SELF-EMPLOYED INDIVIDUAL:
Contact us on: 011 540 2670 should you have any further queries |
 | Having a good credit score is a valuable asset as a potential home buyer. This will influence the size of the loan repayment and interest rate while giving you the power to have a favourable financing rate. You should check your credit score before applying for a loan as each application will also lower your credit score. As a South African, you are entitled to a free copy of your credit record every year. The credit score is rated between 0 – 999. The higher your credit score is, the better your credit profile, and the lower your risk will be, of defaulting on an account or loan. Using details from your credit profile it reflects a summary of your financial decisions. A credit check will be done on you by each institution when applying for a home loan, which is why it is important that you know your credit score before applying. INFLUENCES OF A CREDIT SCOREWhen you start transacting with financial institutions, retailers etc you are building a financial history, this then determines the amount of money you have borrowed and how much you have paid back on time.
IMPROVING YOUR CREDIT SCORE
*Note: Consult your O-YES home loans consultant about determining how much the banks/financing institutions would be prepared to lend you with your current income and expenditure. Please make sure the details are correct on the credit report, if there is an issue please contact Experian on 086 110 5665 as they can assist in amending it.
Other Resources:
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 | ARE YOU A FIRST TIME HOME BUYER?So you’re thinking about buying your first home? It is an exciting time and O-YES Home Loans is here to assist you every step of the way! No doubt you are nervous and excited about purchasing your first home, as it is one of the biggest financial investments you will ever make. Therefore you will have many questions about how it works. Experts in home financing, O-YES Home loans are here to help you with all the answers as well as any valuable information you may need. How prepared are you to buy your first home? You may have already taken a peak as to what you are looking to buy, and with some beautiful homes on the market, you should establish whether you are ready to make a substantial ongoing financial commitment. Ask yourself if your income is sufficient to support a bond? How stable is your income? If you have a secure position with a regular, monthly salary you probably have a good idea of how much you can afford to spend on a new home. Self-employed individuals may have an unpredictable income, which could make it difficult to know if you are in a position to purchase a home. Let one of our experienced, O-YES Home Loans consultants guide you through this process, they will verify your financial earnings and can assist you to understand your affordability by calculating what you qualify for. There are costs and fees associated with the purchasing of a home. You will need to have saved for a deposit on the home. Have you budgeted for moving expenses? Home-owners insurance and rates are also costs associated with homeownership. You will need to calculate your monthly expenses as well as the costs associated with buying a new home. A guideline is bond repayments, taxes and property insurances should not exceed 25% – 30% of your gross income. Responsible lenders will not approve a loan that exceeds 30% of your joint gross monthly income. Try and pay off other debt you have, personal loans, credit cards, clothing accounts etc, before applying for a home loan. What should you consider? What kind of property do you need? While it may not be your dream home, it should meet your immediate and mid-term needs. A couple with a busy lifestyle might find a small/low maintenance apartment that is lock-up and go which might suffice, however, if you have a family and pets this may not be the most practical property for you. What housing needs do you have? Perhaps location is important to you, your work may mean you need to travel, distance to the nearest grocery store, schools, doctors etc. Is the area known for security and safety? Sought after areas are more likely to have homes that appreciate in value. Once you have narrowed down the area and type of home, you are ready to begin your property search. The length of time can vary depending on what your requirements are. Often it can be a lengthy process, and you will learn more and more about what you do and do not want. Once you have found that home you are happy fits your needs, try not to let it go or continue to shop around, if it is the right price and suits your needs, buy it. Helpful tips for buying your first home.
We have some calculators available to assist you in how much you qualify for. Find out whether you qualify for a bond immediately. You can use our home loan repayment calculator to find out. Now that you have established that you could potentially get that home loan, complete our form and we will get in touch with you. Your Home Loans consultant will assist you in getting pre qualified, as well as advise what documentation you need to apply for a home loan. Other Resources:
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 | Applying for a home loan is one of the biggest financial decisions you make, as a result, you will ask everything you can about knowing all the ins and outs of the home. Any defects, price but also what kind of financing options are available to you as a buyer, you should do your research thoroughly before making such a big financial decision. Your needs are unique, not everyone has the same needs when applying for a home loan, so you need to find a home loan provider that suits your needs. That is where O-YES Home Loans comes in, we are here to guide you through the process and find a solution that best suits your individual needs. Best of all? You don’t pay for this service. What should you consider when choosing your provider?
At O-YES Home Loans we specialise in home loans, this gives us unique expertise in the industry, we are versatile enough to assist you countrywide. Our dedicated consultants only work on home loans and build relationships with their clients. Your dream home and assisting you in financing it is our passion, we will endeavor to do everything we can to assist you in getting the home loan, when declined we still want to help you resolve any issues that can be rectified to attempt again at a later stage. We pride ourselves on our service and making your dream home a reality. The consultants that support you are part of a larger team dedicated to making those dreams a reality. Other Resources:
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 | Understanding the importance of the full cost implications of purchasing a property helps a buyer to be financially prepared. There are a number of once-off fees that vary between legal and administrative costs. Transfer Duty This is a Government Tax that is levied for transferring a property from the seller’s name into the name of the buyer. The attorney receives payment for this and they then in turn pay it on behalf of the buyer to the South African Revenue Services. The property will not be transferred until this has been paid to SARS. The amount you pay may vary depending on the purchase price of the property. Properties under R1,000,000 do not pay a Transfer duty, properties above R1,000,001 will be calculated based on the different tax thresholds depending on the value of the purchase price. SARS Transfer Duty Rates Based On Purchase Price Bond Registration Fees If you are applying for a home loan there is a once-off fee to the Deeds Office, this is for the legal registration of the home loan. It is a fixed amount that is determined by the amount of the home loan and is then paid to the Deeds Office prior to registration of your home loan. The seller’s home loan is canceled at the same time that your bond is registered and then the transfer will be registered with the deeds office. Postage, Petties, and Sundries The Registering (Bond) Attorney will charge you a small fee for the postage of all necessary documents (i.e. to you, the Deeds Office, estate agent etc.) to register the property in your name. Conveyancing Fees This is the fee, determined on a sliding scale determined by the value of the property, paid to the conveyancing attorney for registering and transferring a title deed into the name of a buyer. Once You have Purchased Monthly Commitments:
This is a mandatory requirement when securing a home loan. This cover includes items such as geysers bursting or wear and tear, damage to the structure of your home, fire, lightning and other unforeseen events etc. which protects your newly acquired asset from serious and very costly damage. In times of COVID it has certainly become evident just how important it is to have cover like this. This cover protects you and your family from losing their home in the event of death, retrenchment, disability or dread disease. It is immediate and can be finalised in a single call. Maintenance of your home Upkeep of your home is necessary and the reality of being a homeowner. This is part of looking after your property investment, and it is recommended that you budget for unforeseen maintenance work. Taking the time to fully understand your financial commitment to your new home means you are ready to begin the process. We have put together a lot of information to help you through the process on our website, but feel free to contact us, we would love to hear from you and assist you on your journey to home ownership. Other Resources:
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Auctions are fast becoming one of the most popular ways to buy property in South Africa. With the drama of the bidding contest, make sure you’re prepared with an understanding of how they work and what you need to know before bidding.
Auctions are subject to a range of rules and regulations. This quick guide provides an introduction to what to expect and tips on how to prepare if you plan on bidding at an auction.
Because of the public nature of the bidding process, and the need to pay the Buyer’s Premium and sign the contract after the winning bid, you need to be well prepared before going to bid at an auction. Here are some things to bear in mind.
Anyone looking to bid at auction should have an understanding of the jargon that goes along with it. Whilst this is not an exhaustive list, here are some of the key terms you’ll need to be across:
Auctions do not have a cooling-off period and are usually an unconditional offer, unless the buyer and owner agree on any additional clauses prior to the auction commencing. If your bid is successful, the Buyer’s Premium must be paid and contracts signed immediately following an auction. It’s important you go into an auction prepared to complete the sale if your bid wins. If you pull out of the sale, your Buyer’s Premium will be lost and you could be liable for any damages the seller suffers as a result.
Understanding home loan pre-approval
It may be a good idea to have your home loan pre-approval ready before you start house hunting. A home loan pre-approval is when a lender assesses your finances and credit rating to arrive at a decision on how much you can afford to borrow. With this information, you can then start looking for properties that are within your financial range and not get too carried away.
Learn more about how much you could afford in our handy guide: Everything you need to know about home loan affordability.
It’s important to note that a pre-approval does not mean you are 100 per cent guaranteed to receive a final loan approval. Be sure to keep your lender up to date with your financial situation including the property you plan on bidding for.
Although you may be able to agree on a different amount of Buyer’s Premium with the vendor before the auction starts, the buyer’s premium amount is set in the contract of sale and is typically 10 percent of the property’s sale price. It is important to know that there is no cooling-off period for properties sold at auction, so if you are the highest bidder you will have to provide a Buyer’s Premium immediately after the auction ends
The seller sets the settlement date in the contract of sale. As a general rule, property settlement periods are usually between 30 and 90 days, however, this may vary.
If you are unable to follow through with the contract, you will lose the Buyer’s Premium paid and may be liable for any loss suffered by the seller.
Whilst there’s no sure-fire formula for success at auction, here’s some general tips that may help:
 | Do your researchYou’ll need to have conducted all your pre-purchase checks and research before auction day. Think of pest and building inspections, strata reports for units and undertaking your own due-diligence. |
 | Know your obligationsGiven the demands on the winning bidder at an auction – providing the Buyer’s Premium and signing the contract, and the fact that there is no cooling-off period – it is essential that anyone looking to buy a property at an auction has sought advice on the legal requirements in their province, the terminology involved and the health of their own finances. |
 | Have your finances in-checkBecause you need to pay a Buyer’s Premium at the conclusion of the auction, you’ll need to have your finances ready to go before registering on the auction day. This includes having your Buyer’s Premium readily accessible. |
 | Bid confidentlyTry to maintain clear lines of communication with the auctioneer and ensure they know how much you want to bid and what increments you’d like to increase your bid by. |
 | Know your limitsWhen making split-second bidding decisions, it’s important to know your upper financial limits; have an ideal price range and an upper limit to know when you need to stop bidding. |
eBay for houses? Not quite, however the advent of online auctions has allowed for property auctions to continue throughout COVID-19 related lockdowns and allows you to purchase from anywhere in the world.
This could allow potential purchasers to see the outcome and bidding process of other comparable properties before bidding for real.
If you’re intending to bid, you’ll need to set up an account on the chosen platform ahead of time and complete an ID verification – usually requiring your driver’s licence. The details will be passed onto the agent you’ll have visited when inspecting the property. You will probably need to pay a registration fee which will be refunded if you are not the winning bidder.
Online auctions can be watched by anyone with a registered account on the chosen platform.
When the auction kicks off, you’ll see a livestream of the auctioneer who could either be on-site in the property or even in their office or a dedicated broadcast space. It all depends on the agency and auctioneer setup.
The auctioneer will make it known when the property is officially on the market, and you may notice the real estate agents will be speaking with serious bidders throughout the process.
The major advantage for onlookers is easily getting a summary of the bidding history throughout the auction. You’ll be able to see who made what bid, and the increments bidding increased by. This is a great way for potential purchasers to get into a rhythm of auctions and understand how the bidding process could work.
If you’re considering purchasing your first home through an auction, start with our simple home loan borrowing power tool to see how much you may be able to borrow with O-YES Home Loans.
You can also contact one of our Lending Specialists on 010 822 7223 to find out more about your home loan options today.
We’ve got the online tools and calculators needed to help get your home loan journey underway. Work out how much you could borrow and even quickly find out what interest rate you might be eligible for.
As a home loan specialist we can apply on your behalf to all the Major South African Banks as well as Specialist Home Loan Companies to tailor the correct home loan to secure your future purchase.
