Bond cancellations will become relevant in one of two instances, either you would like to sell your home which is bonded, or you have settled your home loan in full.
n the market for a property? The importance of a good credit score and tips to maintain
Buying a new property is as much an exciting decision as it is an emotional one. More importantly, though, it should be an informed decision. Amidst all the sadness and stress of 2020, the upswing in first time home buyers is certainly one of the more upbeat success stories. With historically low-interest rates, affordability levels have increased allowing more aspirant buyers to finally be able to afford to apply for a bond for their dream home. When assessing home loan affordability, one of the most important things that a bank considers is your credit score. In South Africa, your credit score is determined by your credit report, which in turn contains information about your debt history, how you’ve paid it back, as well as your age and your employment status. This credit report, in simple terms, is a summary of your financial behaviour. It provides a reflection of how well you have managed your debt in the past, thus indicating how much of a credit risk you are likely to be.
Once you’ve successfully applied for finance to assist you in purchasing a property you love, one of life’s biggest financial commitments would then be to enter into a home loan agreement with your chosen bank accordingly.
