'Don't spend 20 years paying off your bond' Certified financial planner advices
Are you thinking of buying a house but don't know how the bank reviews creditworthiness applications?
Refiloe Mpakanyane speaks to Certified Financial planner Paul Roelofse about myths around mortgage bonds and how you get labelled as a high risk.
Roelofse says a bond is the longest loan people apply for so the bank checks your affordability and stability.
The bank will look at things like how long have you been employed? How long you have been employed is very fundamental in that application. Secondly, they look at how much you earn.Paul Roelofse, Certified Financial Planner
Don't spend 20 years paying off your bond. If they (the bank) are going to give you the maximum loan and you still have some extra money to save, I would take that maximum loan and take my extra savings and put that bank into the bond straight away, which reduces the term.Paul Roelofse, Certified Financial Planner
Listen to the full interview below:
Source : https://www.123rf.com/photo_21860557_hand-hold-house-against-green-field.html