If an estate agent phones you up with "it's a great time to buy a house!" or the bank offers to extend your credit card limit. Hang up.
Qualifying and affordability are completely different concepts.
"Congrats, Mr. Mkhize you QUALIFY for a R2m home loan"
This doesn't mean Mr. Mkhize can AFFORD all the costs of a house.
It means the bank has run a credit model and they believe he can service their debt.
"Congrats, Mr. Mkhize you QUALIFY for a R2m home loan"
This doesn't mean Mr. Mkhize can AFFORD all the costs of a house.
It means the bank has run a credit model and they believe he can service their debt.
The repo & prime rates are dynamic. Essentially a rates cut will offer short term relief for borrowers.
Your mortgage is typically 20yrs. Will the repo rate stay this low? No.
If you barely qualify to own a property at this point in the cycle, you actually can't afford it.
Your mortgage is typically 20yrs. Will the repo rate stay this low? No.
If you barely qualify to own a property at this point in the cycle, you actually can't afford it.
When there's a rates cut, banks are inherently incentivised to extend their loan book to generate the same quantum of earnings.
"Congrats! You qualify for an extra R50k on your credit card!".
Translated: "We need to make more money off you. Go ahead & spend this for us"
"Congrats! You qualify for an extra R50k on your credit card!".
Translated: "We need to make more money off you. Go ahead & spend this for us"
How mortgages are priced [Thread]
Can bank affordability models be discriminatory according to race? Yes.
[Thread]
[Thread]
Since we're sharing property related threads. Here's one on shopping malls.
@roche_inc 5 bars. Sounds like a studio apartment in Cape Town.
