Can I get a Second Bond?
You already have a bond so what do you need a second one for? Simple, you have ideas of expanding or renovating the property and you once again need assistance from the bank. Banks are always willing to help, just know that they will likely charge a high down payment once again.
Did you know on average, a family will move three times? That means that you are changing residences more often than you might think. And even if you don't fit the norm, sometimes you need to expand.
If you are interested in taking out a mortgage, you first must be able to make a down payment, commonly known as a deposit. This deposit usually should equal at least 30% of the net worth of the property. This down payment ensures the bank that you plan to pay off the debt and have the necessary funds to begin with.
The current mortgage crisis has resulted from banks, especially in the United States, becoming too lenient in who they offer mortgages too. In fact, sometimes banks allowed people to take out mortgages with little down. They are now paying the price, and as a result, must only offer new mortgages with a high down payment.
When considering such a request, the bank will follow the procedures that they would do when granting a new mortgage, but with one or two minor differences. If you plan on renovating your current property and just need help via a loan, the bank will request you submit estimates from professional contractors. Banks are much more inclined to grant the money if professionals will work on the renovation and not yourself.
After you provide the bank with all the details, they will sit down and study your case. The bank needs to decide if you really need the money and if you will be able to pay it off. It's difficult paying off one bond much less two.
The bank also tends to frown upon second bonds that are intended to help release some capital on the property to a struggling business or to support your own, especially if you are looking to start the business from scratch.
Owning a property is a responsibility and benefit every individual should experience. However, taking out a bond is serious matter and one that demands a lot of examination beforehand.
Did you know on average, a family will move three times? That means that you are changing residences more often than you might think. And even if you don't fit the norm, sometimes you need to expand.
If you are interested in taking out a mortgage, you first must be able to make a down payment, commonly known as a deposit. This deposit usually should equal at least 30% of the net worth of the property. This down payment ensures the bank that you plan to pay off the debt and have the necessary funds to begin with.
The current mortgage crisis has resulted from banks, especially in the United States, becoming too lenient in who they offer mortgages too. In fact, sometimes banks allowed people to take out mortgages with little down. They are now paying the price, and as a result, must only offer new mortgages with a high down payment.
When considering such a request, the bank will follow the procedures that they would do when granting a new mortgage, but with one or two minor differences. If you plan on renovating your current property and just need help via a loan, the bank will request you submit estimates from professional contractors. Banks are much more inclined to grant the money if professionals will work on the renovation and not yourself.
After you provide the bank with all the details, they will sit down and study your case. The bank needs to decide if you really need the money and if you will be able to pay it off. It's difficult paying off one bond much less two.
The bank also tends to frown upon second bonds that are intended to help release some capital on the property to a struggling business or to support your own, especially if you are looking to start the business from scratch.
Owning a property is a responsibility and benefit every individual should experience. However, taking out a bond is serious matter and one that demands a lot of examination beforehand.
About the Author:
Graham McKenzie is the content syndication manager at BondCredit.co.za South Africans leading Bond Originator
posted by Credit Counseling at
11:37 AM
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