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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.
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. Taking out a new mortgage is a straightforward process, much like the first time you took out a loan for your property. The only difference is the bank will need to find out the exact reason you want a second bond. With the first bond it was simple, you wanted to own a house or start up a business. With a second bond, you are adding something in addition to your first bond. The bank needs to know your intentions. The bank must remove itself from a large risk, so the direct deposit is necessary. The deposit allows banks somewhat of a chance to recover damages in case the borrower drops out of the picture. Bonds are intended for the long-term, with a minimum of ten years required, and generally running more in the twenty to thirty year period. People who apply for mortgages for the first time must display a steady employment and pasty financial stability for at least a few years. Banks who issue bonds are entitled to ask for banks statements and details of income of both parties in the case of a joint bond against a property. You have no option here. While you may not like disclosing your personal information, the bank must closely examine and judge whether or not you can afford the bond. If you meet the bond's criteria, have a stable job and ample income, the bond is probably only a signature or two away. Just make sure allow the bank plenty of time to examine the bond request and you think it through intensely. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Graham McKenzie is the content syndication manager at BondCredit.co.za South Africans leading Bond Originator |