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| How much can I get as a mortgage? |
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That depends on a lot of different criteria. You have to provide a lot of information in the application process, and the banks will assess the 'risk' associated with your application, before offering you an amount. However, you can use the mortgage calculators on our website to get a rough estimate of how much you could qualify for.
Remember, a bank will also tell you what percentage of the property they are prepared to lend you. So they might lend you only 80% of the property, which means that you have to pay for the extra 20%, or the deposit.
If you would like to know how much you would qualify for, speak to us about getting a mortgage pre-approval.
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| Can I get 100% finance? |
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Possibly. We have helped many overseas South Africans get 100% finance - at a time when banks themselves were saying 80% was the limit! It's all about making the bank aware what risk they are dealing with. Obviously, terms & conditions apply, and you have to fit into some fairly strict criteria first, but speak to us and we can advise you. It is always advisable to have a deposit to put down on your property as the banks' lending criteria change from time to time.
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| What if I am not a South African? |
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Banks will usually only lend 50% to non-South Africans, i.e. you need a 50% deposit. We're doing our best to persuade them to increase this value. However, in certain circumstances, we might be able to get you more than 50%. Contact us to find out more.
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| What is a mortgage originator? |
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Mortgage originators (such as ourselves) assist applicants (such as yourself) arrange finance for properties through the banks. The banks pay mortgage originators a commission to process the applications. This reduces the amount of work that the bank has to do. Most mortgage originators will therefore not charge the applicant a fee for their services, as we are effectively working on behalf of the banks.
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| Why should I use a mortgage originator, like IPS? |
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Mortgage originators know the market very well. Effectively, we are mortgage specialists. We know which banks are offering what sort of deals to whom, for certain property types in certain areas. Confused? Ok. Let's try that again: after processing your mortgage application, a bank will offer you a deal - i.e. a specified amount at a specified interest rate. The amount and rate offered to you depends on a lot of different criteria, mostly based on your particular details, the details of the property, the base interest rate at the time, and the amount of (other mortgage) risk that the bank already holds in the area you are buying.
For example, if you earn a large salary, then the bank regards you as a lower-risk applicant, as you can afford the repayments easier than someone who earns less. The price you are buying the house for is also important, as a higher price means a higher risk for the bank. And lastly, if (say) Nedbank has given 10,000 mortgages out for properties in Randburg, but FNB have only 1,000, then FNB could offer a better deal as they have less risk in that geographical area.
There are a many, many more factors taken into account than mentioned above. A good mortgage originator, though, will know which bank is likely to offer the best deal for your particular application. And a good mortgage originator can offer impartial & expert advice, and can also 'motivate' your application on your behalf, to secure the best possible deal - at no cost to you at all!
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| What does a mortgage originator charge? |
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Usually, mortgage originators don't charge the applicant a cent. IPS certainly doesn't. This is because the mortgage originator gets paid a commission from the bank.
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| Why should I use IPS instead of other South African origination companies? |
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We pride ourselves on the work we have done on behalf of our clients. We are an excellent mortgage originator - at least, we like to think so! We have offices in London and South Africa, so you save on postal/courier costs, plus we are experts at mortgage applications for South Africans living abroad and for non-South Africans. We don't charge a fee, and we provide an efficient, online service. And most importantly, we always work with our clients interests as our top priority.
We are constantly pushing the boundaries with the banks on our clients' behalf - we recently persuaded some of the banks to offer 100% finance to our overseas clients, and we have also been successful in lobbying some of the banks to provide mortgage pre-approvals, both at a time when this was unheard of in the mortgage origination industry!
At IPS, we specialise in raising finance for off-shore investors. 99.5% of mortgages for most SA-based origination companies are for SA-residents, whereas we deal almost exclusively with investors in the UK, Ireland, Germany, France and the rest of the world. We understand the subtle differences - P45's & P60's, umbrella companies, etc. Our contacts in the banks are also familiar with these variations, and are thus more adept at processing such applications. We have even helped get some of the banks to create "international channels", with staff dedicated for this purpose only.
In fact, it's more a question of why shouldn't you use us.
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| Which banks do you work with? |
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We work with all the major banks in South Africa - Standard Bank, First National Bank (FNB), Nedbank, ASBA (These banks represent approximately 96% of the mortgage market). We are also able to assist with applications to the private banks, Investec & Rand Merchant Bank (RMB).
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